the staff of the Ridgewood blog
Ridgewood NJ, Universal Basic Income (UBI) has gained popularity as a bold anti-poverty proposal supported by many progressives—and even a few conservatives. The idea is simple: provide no-strings-attached cash payments to individuals living below the poverty line. But does it actually work?
A new study from OpenResearch, highlighted in a Kite & Key Media video, casts serious doubt on the effectiveness of UBI as a long-term solution to poverty.
The Study: Cash Without Conditions
Backed by OpenAI CEO Sam Altman, OpenResearch launched a 3-year study involving 3,000 low-income participants:
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1,000 people received $1,000/month
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2,000 people received $50/month
The goal? To see how unconditional cash payments affect employment, financial well-being, and behavior over time.
The Surprising Results
After three years, the findings were clear—and surprising:
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💼 Participants receiving $1,000/month worked fewer hours and remained unemployed longer than those receiving just $50.
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⌛ Most of their extra time was spent on leisure, not job training or education.
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💳 Those who received more money accumulated more debt and had less savings than those who received smaller payments.
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💸 The larger monthly payments were spent almost entirely, leaving little room for long-term financial security.
What This Means for UBI
Despite its promise, the data suggests that more money doesn’t necessarily lead to better outcomes. In fact, giving people free money without conditions may unintentionally discourage work and smart financial choices.
“This study adds to a growing body of evidence that cash handouts alone may not reduce long-term poverty—and in some cases, might make things worse.”
Watch the Video
Want a quick and compelling breakdown of the findings? Watch the full summary by Kite & Key Media here.
The Takeaway
Universal Basic Income may sound appealing in theory, but real-world evidence points to significant challenges in its execution. Unconditional cash may offer short-term relief—but it’s not a magic bullet for poverty.
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these is a very strong need for finance and budgeting classes to be taught in school
with real life info on how to save money spend money and invest in 401K and ira.s for retirement
basic math skills taught in school
More leftist nonsense. Isn’t it time they just get a blanket “NO” to their foolish proposals? These people need to go. They need to be ignored, not engaged with.