Pay People Not to Work and, Wow – They Work Less

A just-released National Bureau of Economic Research (NBER) study examined the impact of the government giving low-income individuals $1,000 per month in non-work related payments for three years. What happened to their behavior?

It’s an incredibly important question to answer because Kamala Harris and many Democrats in Congress are big supporters of Guaranteed Income – which provides free money to low-income families to boost their incomes.

The study found that “the total amount of work withdrawn from the market is fairly substantial” after the free money arrives.

The payments from the government were associated with nearly a three-hour-a-week reduction in work by members of the family. They also found no evidence of “job quality or human capital improvements that advocates have hoped might accompany” the cash benefits.

We doubt any sensible person outside of Washington is at all surprised by this result. It only confirms human nature. Alas, we also doubt these results will change Kamala’s position.

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