California's 'foreclosure capital' $500/month to residents in experimental welfare program

LOL! So the capital of foreclosure, so dubbed is Stockton, will begin handing out money. Wait what?

A California city is set to become the first in the nation to embark on an experiment of Universal Basic Income, paying 100 residents $500 a month without any conditions.

The program’s purpose is to eventually ensure that no one in Stockton, with a population of 300,000, lives in poverty. The receivers of the cash will be able to spend the money on anything they want without any strings attached.
It will launch by 2019 and the 100 fortunate residents will receive the cash for a full 18 months as part of its testing phase before deciding whether to roll it out across Stockton.

The city, which was once known as America's foreclosure capital, has recently fallen on hard times, with 1-in-4 residents living below the poverty line and the median household income at nearly $8,000 lower than the national median.

The city also racked up millions in debt from expensive development projects that led to the city’s bankruptcy in 2012.
“We’ve overspent on things like arenas and marinas and things of that sort to try to lure in tourism and dollars that way,” said Stockton Mayor Michael Tubbs.

And the best part is others are actually backing and funding this.

Luckily, the experimental program won’t deplete the city’s coffers as it benefits from financial backing by wealthy Silicon Valley moguls. One of those backers is Facebook co-founder Chris Hughes, whose the Economic Security Project contributed $1 million to the project.
“It is such a fundamental idea behind America that if you work hard, you can get ahead, and you certainly don't live in poverty. But that isn't true today, and it hasn't been true in the country for decades,” Hughes told CNN.

Source

Now that last quote from a FB founder kills me....hasn't been true for decades...so please let me know how you got to where you are. Let me know why immigrants flock here. Let me know how business is booming.

This is just too ironic to not be funny. This city is bankrupt and they decide to give money away....yes....this time it will work...I am sure of it.../sarcasm.

a reply to: Vasa Croe

Good one Vasa Croe........dang $500 isn't quite enough to make a difference I don't think maybe 1500

originally posted by: GBP/JPY
a reply to: Vasa Croe

Good one Vasa Croe........dang $500 isn't quite enough to make a difference I don't think maybe 1500

Even $1500 won't go far in CA. What this will likely do is draw more of the unwanteds there from other areas.

Isn't this exactly the definition of insanity?

a reply to: Vasa Croe

$500 a month buys a lot of Boonsfarm.

a reply to: Vasa Croe


Here's my prediction.



It will fail because they will say 500 is not enough. So since people are now reliant upon the 500 as a basis for their lifestyle, it will have to stay in place probably with an increase, but in order to pay for it they will have to increase taxes.


Government creates a dependent class, then uses this as a justification to raise taxes.

originally posted by: Bluntone22
a reply to: Vasa Croe

$500 a month buys a lot of Boonsfarm.

Steel Reserve 42's. 500 bucks will buy about 200 of them. That's like 5 40's a day. I may be packing my bags and migrating.

originally posted by: skunkape23

originally posted by: Bluntone22
a reply to: Vasa Croe

$500 a month buys a lot of Boonsfarm.

Steel Reserve 42's. 500 bucks will buy about 200 of them. That's like 5 40's a day. I may be packing my bags and migrating.

We could find the cheapest duplex and throw down mad dogs all day! Dude if you go I am right there with ya. WAIT a second..... My house is very nice though and I pay XXXX amount a month for the mortgage. I don’t think 500 will allow me to maintain my lifestyle.....F it lets do it

Free Money.

Free Money,

Free Money.

Free Money!

Without a thought to what pays for it.

I think this is interesting. The cost over 18 months is just under a Mil. It will be interesting to see where this money goes. Or if they just bank it. You could even use the model for such things as seeing if personal tax cuts will be a benefit.

it will work, kind of. An extra $500 dollars will make a difference. Just like the tax cut made a difference.

When it works, people will extrapolate their conformation bias of why it works.

IT will work for those 100 people because, there cannot be a middle class with out poor people, and there are still 74,900 people below them

That's awesome! When fully implemented to the entire city of 300,000, it works out to 1.8 billion dollars a year!

Those hundred residents should find each other and combine funds to start a business.

$50,000 (guaranteed a month) × 18 months = $900,000

100+ like minded employees to start with as well.

That's enough capital to do quite a bit if folks were smart, and it would flip this "program" on its ear.

a reply to: Vasa Croe

300,000 is a lot of people to do this with. But it worked in Manitoba in the 70s.

Mincome

originally posted by: caterpillage
That's awesome! When fully implemented to the entire city of 300,000, it works out to 1.8 billion dollars a year!

So how high will taxes have to be to pay for it?

OK, $500 a month does not sound like much. and it could indeed help people. they got a $1,000,000 donation to pay for these 100 guinea pigs. the question is, if they indeed roll it out to all 300,000 people in that one area. where will they get the $150,000,000 PER MONTH, $1,800,000,000 PER YEAR to pay for it?. seriously that is almost TWO BILLION DOLLARS per year, plus whatever costs involver in administering it. seriously just where is that money going to come from?


almost two billion a year just for one relatively small area, at $500 per person. can you imagine the cost for the state, or country?

originally posted by: DBCowboy

originally posted by: caterpillage
That's awesome! When fully implemented to the entire city of 300,000, it works out to 1.8 billion dollars a year!

So how high will taxes have to be to pay for it?

Very "high" wink wink. But only if the gubment fully supports it.

And what exactly does giving 100 people $500 a month proove? What is the goal of the pilot program?

originally posted by: generik
OK, $500 a month does not sound like much. and it could indeed help people. they got a $1,000,000 donation to pay for these 100 guinea pigs. the question is, if they indeed roll it out to all 300,000 people in that one area. where will they get the $150,000,000 PER MONTH, $1,800,000,000 PER YEAR to pay for it?. seriously that is almost TWO BILLION DOLLARS per year, plus whatever costs involver in administering it. seriously just where is that money going to come from?


almost two billion a year just for one relatively small area, at $500 per person. can you imagine the cost for the state, or country?

They will have to raise taxes.

Period.

Because it would be cruel to "deprive" the people their money which they now rely on, and it would be unfair to everyone else not getting the funds.


This is the birth of a welfare/communist state.


This is how it begins.

With good intentions and wonderful speeches and flowery promises.

originally posted by: generik
OK, $500 a month does not sound like much. and it could indeed help people. they got a $1,000,000 donation to pay for these 100 guinea pigs. the question is, if they indeed roll it out to all 300,000 people in that one area. where will they get the $150,000,000 PER MONTH, $1,800,000,000 PER YEAR to pay for it?. seriously that is almost TWO BILLION DOLLARS per year, plus whatever costs involver in administering it. seriously just where is that money going to come from?


almost two billion a year just for one relatively small area, at $500 per person. can you imagine the cost for the state, or country?

That would be $6000/year for 300,000 people. $500/month for every person, not taxpayer. Just for this one program. It's not viable on a large scale but the cost for this program is well worth it.

a reply to: DBCowboy

They already did pay taxes.

That's an extra $6,000 dollars a year they have to pay income tax on.

They'll end up owing more taxes.

Absolutely effing brilliant!