Posted on by Californiacontrarian

Free Money; Well Spent ?

There was an interesting article in my local liberal rag about all the good things that can happen when you give people free money. This privately funded experimental program is taking place in Stockton, Ca. where 125 needy people are receiving $500 a month for a total of 18 months on a prepaid debit card. Thus far the initial results at the six month mark “show they spend most of this on food, clothing, and utility bills.” Stockton’s African American mayor, Michael Tubbs, hopes to convince state lawmakers to implement the program statewide. 
The participants were chosen from a group that made less than the city’s median household income of $46,033. Of the participants 43% were working full or part time, while 2% were unemployed and not looking for work. The article reports that nearly 40% of the money was spent on food, and 24% went to “sales and merchandise” (places like Walmart and the Dollar Store). Michael Zwolinski, Director of the center for the Ethics, Economics and Public Policy at University of San Diego, said that “the program is more about story telling than it is about social science.” Other critics say that the experiment likely will not provide useful information from a social science perspective given its limited size and duration. 
But think of it . . . what a wonderful way to help those among us who are less fortunate! Only one basic problem . . . 40% of the total value of the monthly $500 on the debit card was withdrawn in cash! The fallback position here was to fill in the blanks by asking people how they spent that cash. Whoa there, big boy! If they spent this 40% or even a part of this 40% on drugs, alcohol, cigarettes gambling, etc., how likely is it that they would admit to such? (When I used to ask people if they were still using alcohol, etc., The inevitable answer was “no,” while the spouse in the room would roll his/her eyes and nod affirmative. Granted my experience was not scientific, but everyone in the room knew what the truth was.)

Before I am ready to give millions of Californians free money, I will need to see something where I do not have to take someone’s word on how the missing cash was spent. Despite, sure to come, liberal protestations, poor people are no more honest or dishonest than the rest of us.

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