The Logical Foundation executed our Maximum Impact Program in the second half of 2024, providing unconditional basic income to 6 homeless veterans, families, and individuals experiencing homelessness in Maricopa County Arizona.
Program Details
Group A: Two participants received 6 payments of $100 per month for 6 months.
Group B: Two participants received 6 payments of $200 per month for 6 months.
Group C: Two participants received 6 payments of $300 per month for 6 months.
Participants were selected via randomization in partnership with local service providers including A New Leaf and the Tempe Community Action Agency. Our primary goal was to help participants regain stable housing, as Arizona’s scorching summers make stable housing a matter of life and death.
Results
We are very excited to share that we achieved our primary goal. As of the end of the program, at least four out of our six participants are moving into housing. Our other major results are as follows:
- All participants were able to either obtain full or part-time employment or start a work-training program. Contrary to popular expectations, unconditional cash assistance inspired and enabled participants to gain employment.
- Every participant reported a decrease in the use of drugs and alcohol.
- Participants felt safer, especially regarding the theft of their personal property.
- Participants reduced their reliance on public services such as hospitals and law enforcement.
Highlight: Participant Spending
Participants spent most of their funds on food, stores of various kinds, and bills. The biggest chunk went to ATM cash withdrawals, which we can’t fully trace afterward, though conversations with participants revealed that much of it covered bills and cash-only purchases. The beauty of unconditional cash lies in its versatility and empowerment, making this lack of detailed tracking a minor trade-off.
Just 6% of the funds went toward alcohol and tobacco, and participants noted a drop in drug use by the program’s end compared to the start. This adds yet another blow to the outdated myth – already debunked by research – that most poor or homeless individuals would squander UBI on substance abuse.
Highlight: What have we Learned?
We’ve learned that even a small amount of economic security makes a big difference. Just $200 a month can shift someone’s outlook, spark hope, and provide resources to pursue goals.
We can design a program to give $1,000 a month to 10 people or $200 a month to 50. Our test with monthly payments of $100, $200, and $300 aimed to find the best balance of amount and reach. Participants told us that $100 – $200 a month, or $50 a week, beat no economic security by a mile, but jumping to $300 added less value. We’ll focus on ~$200 monthly payments as the cost-effective sweet spot.
Most basic income programs have given $1,000 a month with great results. We think smaller amounts to more people will do more good overall and present far more people the opportunity to witness basic income in their lives and their friends and family’s lives.