Finland Had A Free Money For Everyone Program And It Has Backfired In Spectacular Fashion
When the majority of us were kids, we had an allowance that we had given to us once every week or every couple of weeks.
For most kids it is the first time that they learn the concept of getting paid for working at something and how to manage money.
My allowance was five dollars a week plus whatever I could take back to the grocery store in cans every week. Don’t get me wrong, I didn’t just get this handed to me without any effort on my part whatsoever.
When it was the summer, part of it was for mowing the lawn. In the winter it was for shoveling the driveway when it snowed. The only time that it was ever given to me when I didn’t do actual work around the house was when I broke my elbow one winter when I was 14 and couldn’t do it.
The point is, there are governments that think its a good idea to give people an allowance even when they don’t work or aren’t hurt. It’s just for waking up every morning. There’s no way that could possibly fail right?
An experiment where unemployed Finns were given a basic income failed to encourage them to find work, researchers have found.
“The basic income experiment did not increase the employment of participants during the first trial year,” Kela, the Finnish government agency in charge of benefits, said in a statement on the project’s preliminary findings on Friday.
Kela, in conjunction with the Finnish Centre for Economic Research and other partners including the universities of Turku and Helsinki, began a two-year experiment in January 2017 where 2,000 randomly-selected unemployed people were given a monthly basic income of €560 (£490/$634) regardless of any other income they may have or if they were actively seeking employment.
Researchers found that while the free money had neither negative nor positive impact on the participants gaining employment, “those who received the basic income felt better at the end of the experiment than those in the control group.”
Kela researcher Miska Simanainen told the BBC that the experiment was undertaken to see if there was a way to reform the country’s social security system.
Mr Simanainen told the broadcaster that despite the results, he does not believe the trial had “failed,” rather that it “[gives us] new information that we did not have before this experiment.”
Universal Basic Income is supported by billionaire Silicon Valley elites including Facebook CEO Mark Zuckerberg.