Austin’s wrongheaded guaranteed income experiment | Opinion
But Austin’s policy is the wrong one to address those concerns. Austin has a housing affordability crisis, a homelessness crisis and a long list of community challenges that $1 million in the hands of a nonprofit or social services agency might actually make a lasting difference. Instead, Austin is authorizing payments to a handful of low-income residents. The sentiment is admirable; the economics aren’t.
The approach will barely make a dent in the housing crisis or reduce the ranks of the more than 3,100 people identified as homeless in Austin. Most troubling is that the plan has no real strategy behind it. The program has no requirement that recipients actually use the money for housing costs although it is expected that recipients will pay household costs like rent, utilities, transportation, child care and groceries.
Austin will pay $152,000 to a California nonprofit to manage this initiative, which stemmed from a recommendation of a that examined city policies in response to protests over police brutality in 2020. Roughly, 28 U.S. cities are experimenting with some form of guaranteed income.
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