In a groundbreaking experiment, Germany’s non-profit organization Mein Grundeinkommen launched one of the world’s most extensive studies on unconditional basic income, testing its impact on 122 individuals receiving €1,200 monthly for three years.
In 2021, the German non-profit organization Mein Grundeinkommen launched one of the world’s most extensive studies on unconditional basic income. The experiment aimed to test the impact of a monthly allowance given without conditions or work requirements on the lives of participants. Over 2 million people applied to take part in the study, with 122 individuals randomly selected to receive €1,200 ($1,310) per month for three years.
Utopian Concept Meets Reality
The documentary series ‘Der große Traum: Geld für alle‘ (The big dream: Money for everyone) follows five participants and explores the contrast between idealistic activists like Michael Bohmeyer and consumerist priorities. The results of the study show that people who received basic income kept working an average of 40 hours a week, debunking the myth that basic income would make individuals lazy.
However, a significantly higher percentage of participants in the basic income group changed jobs compared to the control group. Knowing they had a financial backup plan likely contributed to this shift. Additionally, more people in the basic income group started studying, often on top of their job.
Universal Basic Income (UBI) is a social welfare policy proposing that all citizens receive a regular, unconditional sum of money from the government to cover their basic needs.
This concept aims to provide financial security and alleviate poverty.
UBI has been tested in various pilot programs worldwide, with mixed results.
Some studies show improved well-being, reduced stress, and increased creativity among recipients.
However, others have raised concerns about its feasibility, cost-effectiveness, and potential disincentivization of work.
Increased Job Satisfaction and Life Satisfaction
The study found that after 18 months, the people receiving basic income described themselves as significantly more satisfied with their work situation, regardless of whether they had changed occupations. Furthermore, participants reported an overall increase in life satisfaction, which psychologist Susann Fiedler found particularly revealing.
Research has consistently shown a strong correlation between job satisfaction and life satisfaction.
Studies have found that individuals who report high levels of job satisfaction are more likely to experience overall happiness and well-being in their personal lives.
In fact, 'one study' found that employees who were satisfied with their jobs reported higher levels of life satisfaction than those who were dissatisfied, even when controlling for factors such as income and education level.
Financing Universal Basic Income
So, how could unconditional basic income be financed? The activists propose a redistribution of wealth through taxes, where Germany‘s top earners (10% of the population) would contribute a part of their income to everyone else. This scheme aims to provide access to more money for 83% of the population, while leaving mid-earners unaffected.
A Way to Combat Populism and Promote Social Change
The basic income activists believe that this is a way to combat the population’s dissatisfaction due to wealth inequality in times of rising populism. They argue that basic income empowers people, providing them with a social springboard to pursue their goals and interests. As Klara Simon, current head of Mein Grundeinkommen association, stated, ‘Basic income isn’t a retreat, but a way to promote equal opportunities and stronger democracy.‘
Basic income, a concept where every citizen receives a regular sum of money from the government, has gained traction in recent years.
This movement often intersects with populist ideologies, which emphasize the need for governments to prioritize their citizens' interests over those of corporations or special interest groups.
Studies have shown that basic income can lead to improved mental and physical health, increased productivity, and reduced poverty rates.
However, critics argue that it may incentivize idleness and be unsustainable in the long term.
