Guaranteed Basic Income: The Case for Centering Dignity and Choice to Catalyze Economic Mobility
- Anne Jensen and Jenn Sloan
- 1 day ago
- 4 min read
Measuring Economic Mobility
Economic mobility is a measure of how an individual’s economic status changes over time. It is frequently measured by one’s income, especially by movement between different income distributions within a generation or from one generation to another.
A Systems-Based Approach
We believe one’s ability to achieve economic mobility is not grounded in individual behavior, attitude or effort. Rather, achieving economic mobility requires systems and institutions to remove barriers and facilitate opportunities for individual growth.
Guaranteed Basic Income (GBI)
How GBI Differs from Universal Basic Income (UBI)
One of the tools for enabling people to achieve economic mobility is the implementation of Guaranteed Basic Income. Guaranteed Basic Income (GBI) is a cash payment provided on a regular basis to a group of individuals or households, with no work requirements, and no strings attached regarding how the payments can be used, per the Stanford Basic Income Lab and Center for Guaranteed Income Research. Although similar, Guaranteed Basic Income is functionally different from Universal Basic Income (UBI), which provides a payment to all citizens regardless of income. For example, the Alaska Permanent Fund, established in 1982, is funded by oil and gas revenue and provides a yearly, unconditional cash payment to all Alaska residents - there are no work or income requirements.
Core Values: Dignity, Choice, and Trust
GBI centers dignity and choice, not just in what it aims to do, but how it aims to do it. Core principles of GBI include:
Embodying an ethos of respect, trust, autonomy, dignity and freedom; and
Assuming recipients can and will do what is best for themselves and their families
How GBI Advances Economic Mobility
Real-Life Impacts of No-Strings Attached Support
The care for dignity and choice that GBI signals is critical for catalyzing economic mobility. Because payments are no-strings-attached, income can be used on whatever is most important to recipients. That could mean having the freedom to enter a workforce training program to increase earned income in a field you’re excited about, increasing your work satisfaction and likely retention. It could give you the means to leave a toxic or abusive home or workplace, and prioritize your own safety and well-being. It could give you the cushion to hire child care so you can attend a job interview or job fair. The examples are countless.
Reducing the "Time Tax" of Public Benefits
The care for dignity and choice also shows up in the way funds are distributed, not just in the outcome of having funds. Once you’re signed up with a GBI program, funds are automatically loaded to your account on a monthly basis. There is no “time tax” for GBI, as is typically the case for accessing public benefits. Time tax includes the time needed to provide onerous documentation to support an application, long wait times in benefits offices, or the requirement of periodic interviews to maintain your eligibility, to name a few.
GBI in Action: Pilot Projects Across the U.S.
The Economic Security Project reports that over 150 guaranteed income pilots have been launched in the United States since 2017, and over 59,000 participants have received cash. As of the time of their reporting, GBI programs currently exist in 35 states. Below are three different examples of GBI demonstration projects, to provide a sense of how these programs work:
Stockton Economic Empowerment Demonstration (SEED)
Stockton, California gave 125 people living in neighborhoods at or below Stockton's median household income an unconditional monthly stipend of $500. (NPR)
Baby’s First Years
NYC Mothers and children received unconditional cash supplements of $333/mo for three years. (Jama Network)
Denver Basic Income Project
A randomized controlled trial (RCT) designed to test the impact of receiving a year of GBI ($1,000/mo; $6,500 lump + $500/mo; $50/mo) compared to receiving typical care and services for people experiencing homelessness. (Denver Basic Income Project)
Public Support and Political Momentum for GBI
Cross-Partisan Appeal in 2023 Polling
Polling in 2023 from the Economic Security Project (ESP) and Mayors for a Guaranteed Income (MGI) shows that a majority of Americans support Guaranteed Basic Income –56% of voters are supportive of a guaranteed income and 64% of voters are supportive of a Guaranteed Basic Income. Of note, there is strong support across parties as well, with 75% of democrats, 53% of independents, and 54% of republicans under age 50 in favor of the program.
Reimagining the Safety Net: Why GBI Is the Future
GBI as a Tool for Economic Equity
Our belief is that GBI should be considered the “modernized American safety net” (Urban Institute) that treats our neighbors with the dignity and care we all deserve. It promotes choice, liberty, and freedom as key pillars of success, and functions as a potential tool for any community looking to achieve economic mobility for their residents.
In the last part of this series, we will delve into how the communities we live and work in have implemented GBI and what we can learn from their example. To learn more about economic mobility, please read the first article in our three-part series, Building Bridges to Economic Mobility: Local Strategies for a More Equitable Future. If you’d like to talk about how you can use Guaranteed Basic Income as a tool for economic mobility in your community, please reach out to us at [email protected] or [email protected].
