Stockton’s Basic-Income Experiment Pays Off
A new study of the city’s program that sent cash to struggling individuals finds dramatic changes.
March 3, 2021
Two years ago, the city of Stockton, California, did something remarkable: It brought back welfare.
Using donated funds, the industrial city on the edge of the Bay Area tech economy launched a small demonstration program, sending payments of $500 a month to 125 randomly selected individuals living in neighborhoods with average incomes lower than the city median of $46,000 a year. The recipients were allowed to spend the money however they saw fit, and they were not obligated to complete any drug tests, interviews, means or asset tests, or work requirements. They just got the money, no strings attached.