Many countries are weighing cash payments to citizens. Could it work in the U.S.?

“The Eastern Band of Cherokee Indians have a land trust, the Qualla Boundary, which straddles parts of Swain and Jackson counties in the Smoky Mountains, in the western part of the state. In the mid-1990s, they greatly expanded the gambling facilities on the Boundary to include a large casino. Some of the profits from the casino are ploughed back into the tribal community in the form of community services –roads and sewers, hospitals and clinics, gymnasia and schools. But some of the money goes straight back to the individual tribal members in the form of a payment every six months, the amount dependent on the profits from the casino. The “per cap”, as it is called, goes to everyone, young or old, healthy or sick, working or unemployed, law-abiding or not, as long as they are members of the tribe. (Money for children goes into a bank account for them until they graduate high school or reach age 21, whichever comes first.) In recent years the amount of the supplement has been around $4,000 a year.”

“In 1993 my Duke University colleagues and I began a study of the mental health care needs of 1,420 randomly selected children living in the 11 western-most counties of North Carolina. We were especially interested in the American Indian community, because it provided strong access to mental health care. So we ensured that a quarter of the study sample were American Indian children – 350 of them.”

“All of the American Indian children in the study, but none of the children in the surrounding counties, lived in families that had received a considerable boost in income.”

“Four years after the casino opened, Indian children had fewer behavioral and emotional problems than did neighboring children. Moreover, the effect continued into adulthood. At age 30, one in five of the American Indians had mental health or drug problems, compared with one in three of those in surrounding communities. The Indians had less depression, anxiety and alcohol dependence. The payments had no effect on extremely severe but rare mental illnesses like schizophrenia and bipolar disorder. But those who had received the supplement had better overall health and fewer economic problems. The younger the participants were when their families started getting the casino payments, the stronger the effects on adult mental health.”

“some individuals spent their extra money foolishly, on drugs and drink, just as was true outside the reservation. Most people used their income supplement wisely, however, and there was no evidence that people worked fewer hours. And, of course, it is much cheaper to give people a check than to administer all the complex means tests that go with government welfare programs such as Supplementary Security Income benefits.”

https://www.salon.com/2016/06/21/many_countries_are_weighing_cash_payments_to_citizens_could_it_work_in_the_u_s

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