Even as federal and state stimulus checks dry up in the US, cities are offering monthly guaranteed stimulus checks spurred by the universal basic income movement. This experiment is being done on a test basis in some cities while others have moved on to the next phase.
The latest round of such guaranteed income stimulus checks started in 2020 with Los Angeles running one of the largest to provide cash-based assistance to low-income residents.
Even as low-paying temporary job holders lost their jobs with the start of the prolonged shutdown in 2020, people struggled to find employment. Basic necessities such as putting food on the table and paying debt or rent became an everyday struggle. Even back in 2020, Los Angeles gave out a generous amount as a form of monthly assistance for a year. The $1,000 was unusual as government direct cash assistance was few and far between before the pandemic.
Such payments are part of pilot programs across cities in the US. The first Los Angeles stimulus check was the largest experiment with a guaranteed income. The basic idea was to find the best way to close the wealth gap and enable people to build a more stable life. And for this, the system of cash support without restriction is the best way to support some of the most vulnerable sections of society.
The concept of universal basic income through direct stimulus checks had been advocated for a long time. Some presidential candidates even made it a centerpiece of their presidential campaign. But at the same time, detractors have argued that the approach was flawed as it incentivizes people to stay away from the workforce. But it appears to be picking up momentum with each passing day.
The help has helped many individuals and families jumpstart their lives after everything ground to a halt in 2020. The first of the stimulus checks right during the peak period of the pandemic was the best way to balance to some extent the wealth gap. It gave people the opportunity to bring back stability to their lives and help some of the most vulnerable people in the city.
Close To Fifty Cities Start Similar Stimulus Check Programs
Across America, over 50 guaranteed minimum programs have been started since the pandemic hit in 2020. And various leaders have supported such efforts at the local, state, and federal levels. While most efforts are publicly funded by the government, there have been innumerable instances of non-governmental support. One notable support was the donation of $18 million by Jack Dorsey, a former CEO of Twitter.
The state of California has from the beginning been the epicenter of the minimum wage program movement. The initial program in Los Angeles was funded primarily by the city. Administration. A total of 3,200 families benefitted in the first round of the payments. The stimulus checks went to families who had at least one child. The income also had to be below the federal poverty level.
Other cities too have moved in with efforts that have relied on both private funds and government. Oakland chipped in with $500 to 600 low-income households for eighteen months. The story is similar in San Diego with many families getting $500 per month for two years.
California set aside $35 million for cities to support pilot programs for low-income residents. The funds will be spread over five years. The aim is to use diverse criteria that include income level, residence in low-income neighborhoods, and people moving out of the foster-care system. The municipalities overlooked the working of this system.
Outside California, three hundred residents of Atlanta earning below the federal poverty level also received a monthly income of $500 for a year. In Minneapolis, two hundred residents from specifically designated low-income neighborhoods received $500 for a couple of years.
And in the fall, 260 families inhabiting emergency shelters and budget motels in Denver received a one-time payment of $6,500. They later received an additional stimulus check worth $500 for eleven months. Later, 560 more people were added to the list of beneficiaries.
One of the first guaranteed minimum income programs was put in place by Mayor Michael Tubbs of Stockton in California in 2019. He noted that such payments are not intended to substitute the main source of income but instead act as a buffer so that people could emerge from the clutches of poverty.
Such unrestricted flow of cash through stimulus checks and other means was broadly employed by the federal government in 2020 and 2021 and in 20222 by the state governments to bring together a guaranteed income.
These measures helped stem the economic devastation wrought by the pandemic and began to be broadly employed by the government at all levels.
Los Angeles Go Ahead With Its Latest Basic Income Guarantee Scheme
The latest poverty alleviation initiative from the city of Los Angeles, the Guaranteed Income Program, will provide a stimulus check worth $1,000 a month for three years to a thousand eligible residents.
The scheme has helped provide some breathing room and helped these families establish financial stability. For those who have been enrolled in the program, it has been a path forward that is sure to change their lives. The support it provides is more than alleviating their monthly needs.
The beneficiaries for the program, which also includes foster youths selected for two years under the $1,000-a-month program, were selected randomly. The lucky ones were contacted by the project team, and they participated in the onboarding process.
The scheme is being considered a pilot project that will usher something on a bigger scale in the next step. It is expected to serve more people in LA County.
The advocates of the program maintain that there is a bigger movement on a national scale that is happening. They say that it will address the true need of our communities.
The program they maintain is just the initial step to addressing poverty. The process focuses on the kind of needs that participants shared in their application process.
