Saturday, 10 Jun 2023

In Germany they will start giving away money just like that

In Germany, researchers will experimentally distribute 1,433 euros (more than 124,000 rubles) to a group of people each month to find out whether the unconditional basic income scheme works. DPA writes about this.

In the course of the study, 120 people will receive the payment, regardless of whether they have sources of income. They will not control the expenses of the participants in the experiment — specialists will only begin to track changes in their behavior. For comparison, the researchers will also observe another group of 1,380 people who will not be given money.

The experiment will last three years and is being implemented by the German Institute for economic research in collaboration with the Association” My basic income ” and researchers from the max Planck Institute and the University of Cologne. The project is funded by private donations.

According to the authors of the study, similar experiments have already been conducted around the world, but their results are either outdated or limited. One of the main discussions around the idea of an unconditional basic income is whether such payments encourage people to participate more actively in the economy or encourage laziness.

A similar experiment was previously conducted in Finland. The project, which lasted two years, was a failure — the researchers concluded that the distribution of money does not affect the growth of the labor market. At the end of 2017, the number of participants in the experiment who found work was the same as in the control group, which did not receive subsidies (18 percent).

The possibility of distributing money to the population was also evaluated in Russia. Finance Minister Anton Siluanov believes that such a measure would be worth taking if the ruble was the world’s reserve currency. The head of the Bank of Russia, Elvira Nabiullina, said that this would lead to an explosion of inflation.