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Germany's 'Universal Basic Income' Experiment Proves It Doesn't Encourage Unmployment (cnn.com) 154

People "are likely to continue working full-time even if they receive no-strings-attached universal basic income payments," reports CNN, citing results from a recent experiment in Germany (discussed on Slashdot in 2020): Mein Grundeinkommen (My Basic Income), the Berlin-based non-profit that ran the German study, followed 122 people for three years. From June 2021 to May 2024, this group received an unconditional sum of €1,200 ($1,365) per month. The study focused on people aged between 21 and 40 who lived alone and already earned between 1,100 euros (around $1,250) and 2,600 euros ($2,950) a month. They were free to use the extra money from the study on anything they wanted. Over the course of three years, the only condition was that they had to fill out a questionnaire every six months that asked about different areas of their lives, including their financial situation, work patterns, mental well-being and social engagement.

One concern voiced by critics is that receiving a basic income could make people less inclined to work. But the Grundeinkommen study suggests that may not be the case at all. It found that receiving a basic income was not a reason for people to quit their jobs. On average, study participants worked 40 hours a week and stayed in employment — identical to the study's control group, which received no payment. "We find no evidence that people love doing nothing," Susann Fiedler, a professor at the Vienna University of Economics and Business who was involved with the study, said on the study's website.

Unlike the control group, those receiving a basic income were more likely to change jobs or enroll in further education. They reported greater satisfaction in their working life — and were "significantly" more satisfied with their income...

And can more money buy happiness? According to the study, the recipients of a basic income reported feeling that their lives were "more valuable and meaningful" and felt a clear improvement in their mental health.

Germany's 'Universal Basic Income' Experiment Proves It Doesn't Encourage Unmployment

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  • Oh, those efficient Germans, always leaving out letters.

  • They are probably going to need to work *two* jobs to keep up with the inflation caused by all of the UBI checks.
    • Do Social Security checks create inflation?

      • If they're paid for with tax revenue no. If they're paid for with borrowing or just the good old fashioned printing press then yes.

        Next question.

        • Re: (Score:3, Insightful)

          Ahh, so the method and implementation here does in fact matter, not "UBI causes inflation" as axiomatically true.

          Bring on our inflation free UBI checks then, the right wing agrees.

    • Not necessarily. As stated in the summary, people on UBI were more willing to change jobs, or continue further education.

      While this might lead to higher education prices, but not necessarily additional inflation overall. I expect those who changed jobs, may had chosen careers that may pay less where they have a more fulfilling career without the worry about meeting basic needs. Other options would they may have chosen higher risk and possibly higher reword type of work as well.

      Speaking from my own person

    • inflation caused by all of the UBI checks.

      They won't cause any inflation. The idea of UBI is to redistribute wealth more equitably, not create it out of nothing. It may change how money is spent, but not how much.

      • This is a deflation without evidence.

        UBI that's dependant on someone's existing income isn't UBI either.

        Few people will quit a job for a temporary income either. Studies like this are generally very skewed when looked at for the finer details.

    • There wouldn't be any inflation, if the UBI isn't fed by money printing.

    • by hey! ( 33014 )

      Both economies are dealing with cost disease -- an economic phenomenon where discretionary purchases like enormous TVs and phones become cheap but non-discretionary purchases like housing, food, health care and education become expensive. This is particularly in the US, which is why Americans have more stuff than ever before, yet feel economically less secure than at any time since the Great Depression.

      UBI would definitely make that iPhone 16 Pro Max more expensive, because demand for high end flagship phon

  • This wasn't a UBI (Score:4, Informative)

    by MeNeXT ( 200840 ) on Saturday April 12, 2025 @02:58PM (#65300949)

    This in no way proved what it claims to prove. There isn't enough space on this site to cover all the reasons...

    • Re:This wasn't a UBI (Score:4, Informative)

      by dfghjk ( 711126 ) on Saturday April 12, 2025 @03:15PM (#65301011)

      There's no "universal" definition for UBI though. It was a study, it provides some information. You don't like it. That's what we learned.

      But I guess what you're saying is that if only it was UBI then unemployment would be encouraged? Is that your definition of UBI?

      • by MeNeXT ( 200840 )

        Universal Basic Income is in the title.

        It was not a study because giving 122 people money for a few years in a society of millions does NOT reflect an outcome.

        Money in itself has no value apart from the process to print it. The value of money comes from effort/work. If there is no effort to acquire money and there is effort to create something then money will not be able to acquire it because nobody will create it. If everybody could acquire money with no effort then they get nothing of value when they exch

        • by fluffernutter ( 1411889 ) on Saturday April 12, 2025 @05:55PM (#65301399)
          Except it doesn't increase the work everyone else has to do because they didn't work any less than they did before.
        • I see where you are going with the value of money is based on work. That may of been true at one point but it isn't nearly so rigid as your post would imply. If we covered UBI with taxes collected, it would just be redistributing the same amount of money around. This would not cause inflation since the same amount of dollars would be chasing the same amount of goods.

          On the other hand, if you print money or put on the national credit card, now you are creating inflation because you are increasing the supply

          • it would just be redistributing the same amount of money around. This would not cause inflation since the same amount of dollars would be chasing the same amount of goods.

            Only in aggregate. It's generally the case that the ultra-rich are not buying the goods and services that the lower classes are trying to buy. This means that if you suddenly shift a bunch of money (spending power) to the lower classes, there will very likely be an increase in prices for the goods those lower classes purchase because you

          • On the other hand, if you print money or put on the national credit card

            Why limit it to the "national" credit card. Isn't he same true if you put it on your own credit card. You have spent money without creating any value.

    • I'm gonna guess there's only one reason you had in mind, because everyone who criticizes studies like these only ever HAVE one reason: "It's not really UNIVERSAL basic income because it didn't include wealthier people."

      Well the thing is, nobody really gives a shit what people with a lot of money will do with some extra pocket change. There is zero point in wasting limited funds for a study of how extra money will change people's behaviors/lives, if the people in question already have enough money to do basi

      • You're missing the other side: it doesn't model what wealthy people will do when their incomes are massively cut into to pay for UBI.
      • Re:This wasn't a UBI (Score:5, Interesting)

        by MightyMartian ( 840721 ) on Saturday April 12, 2025 @03:47PM (#65301091) Journal

        Some people have a very Aristotelian political view: that there are masters, and there are slaves, and the slaves are, by the nature, subordinate, and cannot be permitted independence, since they'd just muck it up anyways. UBI violates this by basically saying there are no masters and slaves, that people will receive a sufficient income by the mere fact that they *human beings*, and not based on any cultural metric that so many of a conservative bent mistake for intrinsic worth.

        • by MeNeXT ( 200840 )

          There are people in this argument that don't realize that money is just paper. Fancy paper, printed paper or just numbers in a bank statement. The truth is that money represents valued work, effort, and giving fancy paper away without work or effort diminishes the value of what that paper represents. Mind you our society with it's laws has skewed the value. In some ways it's beneficial and others it's not but that is OK because the value adjusts because all human beings decide what this value is.

          The problem

          • money is neither the cause nor the solution to this problem.

            I think you are wrong. It is the money. The concentration of wealth is what is allowing a small group of people to have control. They have replaced self-government with an oligarchy.

            If we don't redistribute the wealth democratic self-government is dead.

        • I honestly don't mind the idea of UBI but I also do not see how it could work with a capitalistic society. We would have to change our society in numerous ways before we could actually implement a UBI but I just don't see us ever doing it.

          Also, if UBI works out like how welfare is working out, it's not really long term way to live unless you truly detest working. Welfare, you can't really work your way out, unless they've changed things the past twenty years. UBI sounds like it's just no strings attached an

          • UBI would work fine - IF the government would do its fucking job for once.

            I.E.: Making sure that there are checks and balances that ensure the following conditions are met within the UBI budget

            There are enough rent capped basic living spaces, without everything being in a slumlord project housing

            Caps on how much basic staple foods cost per month.

            Caps on the (enforced to be fast enough to at least be useful ) base tier of entertainment / internet.

            Anything above the base tier of rent / more or better food thi

      • I am with parent on this one but not because it doesn't include wealthy people, but because it's an experiment. The idea of UBI is that you're getting cash, no strings attached, stress free, for you to plan your life around.
        These UBI experiments are much like the WFH experiments many companies did, where they said "We're gonna allow you guys to work from home and if productivity doesn't fall, we will keep this forever". There is an implicit suggestion to lie and to be on your best behavior in order to make

        • > These UBI experiments are much like the WFH experiments many companies did

          You understand this study is 1) Not the first of its kind, and 2) Had a very robust control group? (Roughly 10x the size of the test group)

          There's no need to lie on the surveys in the hopes of keeping the experiment going or stay in the program. It's not like they'd get kicked out of the study if they reported sitting on their ass smoking weed for three years, unlike an employer might.

          > Give a set amount to everyone

          Again, nobo

    • Well no, it wasn't universal. What it did was suggest that the unsupported claims about human psychology that people who received a basic income would work less were not true. In fact, the group of people who received the checks continued to work just as much as the group of people who didn't.

      It also calls into question some basic assumptions about human beings that underlay the "science" of most economics.

    • It wasn't UBI from an economic point of view, but it absolutely fitted UBI perfectly from an end user point of view, which is all that was needed for determining people behaviour.

      It was Universal: Given without means testing or conditions.
      It was Basic: Covering essential needs.
      It was Income.

      Now if you want to study the viability of UBI as an economic platform for a government the definition changes, it wasn't Universal since it didn't apply to everyone and thus couldn't take the place of many government ser

      • No, it doesn't.

        It's definitive in nature, it's a specific amount for a specific period of time. The funds weren't enough in the local economy to drive inflation, because the same size was too small to do so. It won't drive people to abandon work because after the term of the study they need to have decent jobs to keep living. The temporary nature also limits the increase in their standard of living spending, as upgrading their living situation would be a problem at the end of the term.

        These would be differe

      • by MeNeXT ( 200840 )

        Universal in UBI means to cover everyone not just those who need it. This is the definition of welfare.

  • by lbates_35476 ( 901961 ) on Saturday April 12, 2025 @02:58PM (#65300957)
    While this might work in a country that still has some modicum of work-ethic, I don't believe it would work in the US. A few years ago I had a client that had 100's of people on payroll that were mostly just above minimum wage. When they received their Earned Income Credit rebates annually, most of them wouldn't show up for work. Their reasoning was they had money so there wasn't any incentive to work. Company had to change to policy so that they could only receive EIC monthly, so the amount was too small to trigger them to no show up for work. Real world example.
    • Am I the only one to remember how pot leagalization arguments were met with this response too, "it might work in the Netherlands but not in Washington state", and how that argument has been dismissed by trying it anyway?

      • by dfghjk ( 711126 )

        No, everyone who's not a bigot remembers along with you.

      • Yes, you are the only one who had a dog in the race who remembers. Overwhelmingly the other enthusiasts have problems with memory. :)

    • Re: (Score:3, Insightful)

      by AmiMoJo ( 196126 )

      Most people don't want to live a basic life on the minimum needed to survive. When they give up it's usually because they see that the system is rigged against them, or they feel that there are no opportunities.

      It's particularly bad in the US.

      • There is also the issue where, if you make less than X amount of dollars a month, you get benefits and if you make above them, you lose them. There is the obvious benefit where just staying below the line is more advantageous than crossing it by a small margin.

        • by AmiMoJo ( 196126 )

          In the UK you lose about 60p for every 100p you earn. In fact the majority of people receiving benefits, if you exclude the state pension, are working, i.e. it's corporate welfare.

          Anyway, because you lose less than you gain, it is worth working. There's a lower limit too below which you don't lose anything I think.

      • Or they've been trained to believe that "the system" is rigged against them by their parents/other adults in their lives and haven't had any role models that could show them otherwise.

        • trained to believe that "the system" is rigged against them by their parents/other adults in their lives

          To the contrary, they have been trained by the system to believe its rigged because the role models they see largely contradict their parent's claims about opportunity if they just "put their nose to the grindstone." What they see is very hard working people struggling while there is a group of privileged people who are wealthy while hardly doing any real work at all.

    • I never quite got this and where is the evidence of this lack of work ethic outside of personal anecdote, where is the data? UE is very low so American's are working. We don't have a very strong welfare system and much of it is tied to work so unless a person has money to live already or is disabled or old they have to work in the US.

      Is this monthly EITC thing quantifiable in any data? We should have a data point of quits or firings during tax refund time I would imagine if this is true.

    • So when they could afford to take a vacation, they took vacations. How is this an argument against a UBI?

  • Who may be laid off in the next few months.
  • If I knew I would have to work again in three years I would be much more inclined to keep my job and/or use the time to educate myself.
    • by dfghjk ( 711126 )

      People always imagine they'd do things differently than they actually do them, and UBI is not a free ride. UBI should be considered a baseline guarantee and efficient safety net, not a way to solve personal motivation problems. Those are different things.

  • by Somervillain ( 4719341 ) on Saturday April 12, 2025 @03:06PM (#65300987)
    ...if this anti-UBI BS were true. People don't stop yearning for more when they have enough. A Toyota Camry is just fine for 99% of the population, but people buy Lexus, Mercedes, and BMW all the time. People always want more than "enough." Lots of people earn "enough" to pay their bills, yet they still keep working for promotions and investing

    UBI just ensures we have consumers to buy our goods and services. It reduces the pressure on lower income families to hustle hustle hustle and take a breather and take care of their kids. There are a lot of women, for example, who want to work part time or stay at home with their children, but can't...either because they can't make ends meet or they're worried that if something happens, they'll go bankrupt without a good nest egg. This reduces that pressure. This allows people to pursue less profitable occupations...both the stupid ones you're probably thinking of like artists and artisans, but also things like restaurants and retail.

    There are many who want to make you food or sell you things, but simply can't make enough profit to pay their bills...few retailers or restaurants can these days. UBI could turn back the clock 20 years on main street...back when there were many stores and restaurants...that you could actually afford to eat at.

    Today, in my area, all restaurants are EXPENSIVE. I have 2 kids. I can't even eat at McDonald's for less than $50. A real restaurant is typically $75-100....and even then, they're constantly closing and complaining about how much they're struggling. UBI could allow them to operate again...maybe even lower prices slightly.
    • by dvice ( 6309704 )

      > There are many who want to make you food or sell you things, but simply can't make enough profit to pay their bills.

      You can usually get better results by increasing the amount of money you can earn before you have to pay taxes. This encourages people to work and lets them earn more money when they work.

    • by MeNeXT ( 200840 )

      UBI devalues money so we end up at the same place. It's the choices we make and the laws we enact that create the situation. Printing more money does not fix the problem.

  • UBI or similar schemes, while having populist appeal, misunderstand the nature of money. There is no such thing as "free money" from the government - it was either taken from someone else (via taxes, etc...), or was printed (creating inflation, and the attendant macro effects.)

    UBI schemes, because they are paid by taxpayer dollars, are always a zero sum game. Society as a whole is never made better. Unlike free trade, in which both parties benefit from a transaction, in UBI schemes, there are only hos

    • Re: (Score:2, Informative)

      by dfghjk ( 711126 )

      "Society as a whole is never made better."
      False. Your problem is your definition of "better".

      "Unlike free trade, in which both parties benefit from a transaction, ..."
      False. Your problem is your definition of "benefit".

      "...in UBI schemes, there are only hosts and parasites."
      False, for obvious reasons.

      "Instead of fostering a system in which everyone involved in trade can benefit, we have people today creating classes of haves and have-nots, where the haves and have-nots are decided not by merit or individu

  • Judging by the headline - "...Unmployment" - DOGE must have convinced someone that letters cost money and we need to slash how many vowels we use.

  • The problem with UBI (Score:3, Interesting)

    by allo ( 1728082 ) on Saturday April 12, 2025 @03:54PM (#65301109)

    The problem with UBI is not, that people don't want to work. The problem is, that you need to pay workers what the work is worth.

    Let's say nobody has to work because of UBI, but people inherently want to work. What jobs suffer? The ones, that are both unpopular and underpaid. You will suddenly have to pay a lot more for the jobs that are unpopular. That's how it should be in capitalism, demand and supply, but the job market in most countries undermines that and allows to exploit people who can't get better jobs to do that stuff not because they want or it is paid appropriately, but because they have no other option.

    Once we agree that some companies have to let go of their underpaid slaves and pay people for these things, we can introduce UBI. But, of course, these companies lobby against it and also make the poor people believe it would be about their disadvantage in the end ("The only result is a price increase on everything!")

    • by dvice ( 6309704 )

      That is not true. If people want to work, they will work on those underpaid jobs also, because there is nothing else available.

      But if you think money will make them demand better pay, how about UBS then? Lets give people food, house, healthcare and minimum stuff needed for life. Everything we give should be really the minimum that can be provided with cheapest possible price.

      If you want a better house, better food, clothes that don't make you look poor or if you want to buy a game console. You need to get a

    • Once we agree that some companies have to let go of their underpaid slaves and pay people for these things, we can introduce UBI.

      This is an incorrect conclusion.

      You will suddenly have to pay a lot more for the jobs that are unpopular. That's how it should be in capitalism, demand and supply

      This is the correct conclusion. The fact that this is true doesn't mean UBI shouldn't not be implemented, it means that when it is implemented that companies will either adapt or they will be replaced by startups or companies that have adapted.

      The fasted way to end a bad practice is cut off it's source of funding. Therefore, if you do not wish to have virtual slaves in a society then making the practice economically unsustainable is the solution.

    • No, you don't have to pay workers "what the work is worth". There is no absolute value on anyone's time other than that set by minimum wage laws. If you can figure out how to get people to pay more for the same work, you're free to try. Many of the highest wage earners with unique skill sets and/or some other form of leverage can negotiate fat paychecks despite sometimes not doing very much at all.

  • One possible flaw... (Score:3, Interesting)

    by The Grim Reefer ( 1162755 ) on Saturday April 12, 2025 @04:10PM (#65301167)

    Is UBI still being paid to participants? If not, did the participants know this was a 3 year study? If so, it's unlikely someone would just pause their career for 3 years because of it. The real test would be how folks would behave knowing this would never end.

    On the other side, it can be argued that welfare programs in the US have created a permanent underclass. I grew up poor and my mom relied on those programs to raise us. I can tell you there was an insane amount of people who did everything they could to abuse those programs. I was lucky/smart enough to stop doing stupid shit once I turned 18. But most of my childhood friends did not. The ones who are still alive and not in jail are mostly still stuck on that merry-go-round.

    • No. These experiments are inevitably short-lived, and avoid the consequences of participants who are, indeed, unwilling or unable to fulfill their end of the paperwork and bureaucratic requirements.

  • If one agrees (and not all may) that food and shelter are fundamental human rights, and should be available to all, regardless of circumstance, UBI can be a method to at least partially achieve it. It is not the only way to achieve it. It may not even be the best way to achieve it. This experiment produced some results that contradicted some peoples expectations about UBI. That is what good experiments do, they see how theory holds up in practice.
    • Well clearly we don't believe that or else there would be cafeteria's open to the public for free meals, regardless of status. Never heard of that, so clearly "food" isn't a right. Housing is also clearly not or have you noticed all the homeless? They are prevalent in San Diego. Ironic, since it's such a rich city in a state with a GPD that would make the top ten yet we can't fix our homeless issues.

      Starting to get the feeling that politicians are just talking out their ass when they say food and shelter ar

  • by PPH ( 736903 ) on Saturday April 12, 2025 @05:05PM (#65301305)

    The study focused on people aged between 21 and 40 who lived alone and already earned between 1,100 euros (around $1,250) and 2,600 euros ($2,950) a month.

    ... for chronically unemployed people.

  • The real question is did it cause landlords to just increase rent to the same level of the UBI so that the net result was negative?

    This is something that already happens with Welfare systems. What we want to know is how landlords didn't just go "I know you are getting X, so I want all of X"

  • Proves nothing, except that if you give people a lot of extra attention and support and _observation_ they're less likely to slack off. Now, try it with the Now try it with the roughly 5 million Muslim refugees from Turkey who are overwhelming Germany's social services, and declaring Sharia law in their newly settled communities.

  • The one, and only, question that needs to be answer for universal income is: Who's paying for it? All other questions/answers are irrelevant, and are just used to make it seem like this is a great idea.
    • How do you think the economy works right now? You do work and money magically appears in your bank account because you 'created' it by doing your job?

      The government prints it (though it's mostly digital now), the value is affected by how much is available to move around and the perceived productivity of the economic region that government controls plus a few other factors.

      Once it's in circulation, the question is where that money moves and what those movements represent. A government can force it to move

  • The arguments against UBI are:
    - Everyone (except me) will turn into do-nothing drug-addicts. [Ignore the economic principle of unlimited wants.]
    - This is a pay-rise [False]. Giving everyone a pay-rise is wrong.
    - 'Bad' people don't deserve a place in society.

    A generic 'bad' discrimination allows the slippery slope/Overton Window to cause a race to the 'bottom' of human rights. Where's the Elon Musk hospital, the Elon Musk school, the Elon Musk library? Has this billionaire spent a cent helping a

  • We could watch all the /. heads explode.

The sooner all the animals are extinct, the sooner we'll find their money. - Ed Bluestone

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