A Dutch city is giving money away to test the “basic income” theory

A Dutch city is giving money away to test the “basic income” theory

by Maria Sanchez Diez at Quartz

http://qz.com/437088/utrecht-will-give-money-for-free-to-its-citizens-will-it-make-them-lazier/

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Some people in the Dutch city of Utrecht might soon get a windfall of extra cash, as part of a daring new experiment with the idea of “basic income.”

Basic income is an unconditional and regular payment meant to provide enough money to cover a person’s basic living cost. In January of 2016, the fourth largest city in the Netherlands and its partner, the University of Utrecht, will create several different regimes for its welfare recipients and test them.

A group of people already receiving welfare will get monthly checks ranging from around €900 ($1,000) for an adult to €1,300 ($1,450) for a couple or family per month. Out of the estimated 300 people participating, a group of at least 50 people will receive the unconditional basic income and won’t be subject to any regulation, so even if they get a job or find another source of income, they will still get their disbursement, explained Nienke Horst, a project manager for the Utrecht city government. There will be three other groups with different levels of rules, and a control group that will follow the current welfare law, with its requirements around job-seeking and qualifying income.

The experiment seeks to challenge the notion that people who receive public money need to be patrolled and punished, said Horst. The traditional criticism of basic income is that it does not incentivize people to work, and thereby damages the economy.



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