There has been a lot of worries about the future having high levels of unemployment. This is from fears that the advance of artificial intelligence will cause waves of mass unemployment at levels beyond what has been experienced in the past. Self-driving cars and trucks could cause the loss of 5 million jobs in the United States.
Basic Income Experiment in Stockton
The Economic Security Project is a group that is promoting guaranteed unconditional basic income.
They are a major funder of a demonstration in Stockton, California.
The Stockton Economic Empowerment Demonstration, or SEED, is the country’s first-ever city-led Guaranteed Income initiative. A collaboration between the Office of Mayor Michael Tubbs, the Reinvent South Stockton Coalition, the Economic Security Project, and the residents of Stockton, California, SEED aims to test a simple, yet innovative, solution to poverty and inequality.
Starting February 15, 2019, the demonstration will provide 130 households in Stockton with a guaranteed income of $500 per month for 18 months. The income will be unconditional, meaning there are no work requirements and no restrictions on how the money can be spent.
This is a $1.17 million program.
At the end of the Demonstration, the evaluation will help us answer the following key research questions:
1. How does a guaranteed income impact financial insecurity and volatility?
2. To what degree will a guaranteed income impact drivers of inequity and social determinants of health?
3. How does guaranteed income unleash potential among recipients and generate agency over one’s future?
4. What do the residents of Stockton think policymakers need to know about guaranteed income and living paycheck to paycheck?
After the evaluation ends, a final impact evaluation report will be published outlining the results of the Demonstration.
Passive Income Options For Individuals
If a person was able to avoid getting loans and debt then how much money would they need to invest to generate $500 per month. Relatively safe and secure bonds and certificates of deposit can generate 2.0 to 4.0% annual returns.
It is possible for people to manage their personal finances to create streams of passive income. Most people in the US have debt which requires money to be earned to pay the monthly debts.
$6000 per year from 2% annual return would require a $300,000 investment
$6000 per year from 4% annual return would require a $150,000 investment
Managing rental real estate is not passive income. It is possible to manage rental property for returns in the 4-10% annual return range.
There are various online lists of passive income assets and businesses. Mymoneywizard has a fairly comprehensive list. It covers various kinds of rental property, dividend investments and businesses like coin-operated laundries.
SOURCES- Economic Security Project, Mymoneywizard, Stockton SEED
Written by Brian Wang