The Pros and Cons of Monthly Cash Payments for Universal Basic Income
A new study on universal basic income suggests that while monthly cash payments are beneficial for immediate assistance, lump-sum payments may be more effective in helping those in need build long-term wealth. The study, conducted in Kenya, compared the impacts of different types of direct payments and found that a one-time $500 payment had more lasting effects on recipients' earnings and access to education. However, the study also noted that lump-sum payments had the smallest positive impact on mental health. The research highlights the need for tailored approaches in designing cash transfer programs to meet basic needs and support transformative changes in the lives of people living in extreme poverty.