Instead of using extra time to work or pursue education, many recipients simply relaxed.
On average, UBI recipients worked 1.3 hours less per week. This decline in work hours translated into a decrease in annual individual income of about $1,500 when compared to those who did not receive UBI. The findings raise a troubling question: Is UBI actually making people poorer?
Unemployment rates among recipients also paint a grim picture. Many individuals stayed unemployed longer, suggesting they weren’t utilizing the additional free time to secure better job opportunities. While it was noted that recipients became more selective in their job applications, there were no significant changes in the types of jobs they sought or the quality of those positions.
See also Fed Beige Book Shows Only 3 of 12 Regions Growing, 3 Declining Education outcomes didn’t improve significantly either. The study indicated that, overall, there were no substantial gains in educational achievements among recipients, though some minor improvements were observed.
So, what did people do with the extra time? They primarily engaged in relaxation and leisure activities, indicating that the additional autonomy provided by UBI didn’t translate into productive endeavors.
See also FBI's revised data shows a 4.5% violent crime increase, reversing initial 2.1% decrease.
The study suggests that while UBI offered recipients more control over their schedules, it failed to generate better job opportunities or enhance educational pursuits. Instead, it resulted in fewer work hours and more leisure time, raising questions about the effectiveness of UBI in achieving its intended goals.
Foundation for Economic Education (FEE): The Largest Study Ever on UBI Was Just Conducted—The Results Are Disappointing for Advocates
CBS News: Here’s what a Sam Altman-backed basic income experiment found
GiveDirectly: Early findings from the world’s largest UBI study
#1: Pinguinite To: Horse (#0)
The 40 hour work week was devised by Ford who found that was the maximum a person could work and still be reasonably productive for the entire work time.
The problem is there's not enough work for everyone. We see this internationally as govs and political talking heads talk about exporting jobs. If one country does all the producing and the rest are only consuming, a trade deficit will arise that xfers wealth from the consumers to the producers.
In a George Jetson type world, there would be no need to work as all is automated. But what does that mean for economics? A UBI is a potential solution, basically representing the fact that produced goods and services are all very cheap, which in turn means a work week would be reduced from 40 hours to something much less. And yes, shorter work means more leisure. What's the point of getting more education to be more productive if one already receives all they need for the reduced time they do work?
The human mind & body is designed to be productive some 40 or more hours a week. Automation reduces that load. The problem is not UBI. UBI is simply a manifestation of an automated society.
Pinguinite posted on 2024-11-04 18:47:56 Reply Private Reply
#2: Horse To: Pinguinite (#1)
Horse posted on 2024-11-05 00:07:01 Reply Private Reply