A Californian experiment in the provision of guaranteed income returns its first results

FOR THE PAST two years, as part of an experiment, 125 residents of Stockton, a small city in California’s Central Valley, have found themselves $500-a-month richer. The money arrived on or around the 15th of every month, timed to coincide with a period that tends to be sparse for people on typical low-income pay cycles. The recipients were selected at random from a longlist of people who signed up for the experiment online. The only criteria was that they should be adults living in neighbourhoods in which the median income was lower than the median in Stockton overall. Since about 10% of Stockton’s residents do not have bank accounts, the money was transferred onto pre-paid debit cards issued by the research group, the Stockton Economic Empowerment Demonstration. Recipients did not have to meet any conditions to get the money. They could spend it on whatever they wanted.