Free Money Actually Makes People Poorer: Latest Universal Basic Income Study Shows Taxpayers Subsidizing Cigarettes
A groundbreaking study from the National Bureau of Economic Research has shattered leftist fantasies about Universal Basic Income (UBI), revealing that recipients of $500 monthly handouts ended up just $100 richer while smoking more cigarettes. The liberal pipe dream of solving poverty by throwing “free money” at people continues to crash against the brick wall of reality, confirming what conservatives have long understood: economic growth and job creation, not government handouts, are the true pathways to prosperity.
The Truth Behind the Universal Basic Income Fantasyland
Just when you thought the Left couldn’t come up with more creative ways to waste taxpayer dollars, they’re now doubling down on their favorite fantasy: giving everyone free money with no strings attached. Universal Basic Income proponents, like those at the Roosevelt Institute, claim that handing out $1,000 monthly to every adult American could magically grow our economy by 12.56 to 13.10 percent by 2025, adding a whopping $2.5 trillion to GDP. These projections assume that showering people with cash will somehow boost consumer demand and create an economic renaissance—all without significant negative consequences.
But let’s get real. When the National Bureau of Economic Research actually studied what happens when people receive about $500 per month in “free money,” the results were predictably disappointing. Recipients ended up only $100 richer at the end of the day. Why? Because human nature doesn’t change just because the government cuts you a check. Even more troubling, these recipients weren’t using their windfall to become entrepreneurs or improve their education—they were buying more cigarettes.
The Work Disincentive That UBI Advocates Won’t Admit
UBI enthusiasts love to claim that free money doesn’t discourage work. The Roosevelt Institute’s study boldly suggests that a UBI could actually increase employment by 2 percent and expand the labor force by millions. But the real-world evidence tells a different story. The National Bureau of Economic Research found that while full-time workers weren’t immediately affected, part-time workers showed a 13 percentage point decrease in labor market participation. That’s a fancy way of saying they worked less when given free money—shocking absolutely no one with common sense.
This starry-eyed quote from Ioana Marinescu perfectly exemplifies the delusional thinking behind UBI. Of course people will work less when given free money! It’s human nature, and every parent who’s ever tried to get their teenager to mow the lawn after handing them a $20 bill knows this truth. The problem with socialist fantasies like UBI is they consistently ignore the fundamental realities of human behavior in favor of utopian wishful thinking that has failed throughout history.
Who’s Really Going to Pay for This Socialist Scheme?
Even the most enthusiastic UBI proponents acknowledge that implementing a full $1,000 monthly payment would require massive tax increases, particularly targeting the middle class and wealthy Americans. The Roosevelt Institute’s study claims that funding UBI through progressive taxation would still grow the economy by 2.62 percent—a far cry from the 12-13 percent growth projected if we just print money to pay for it. These people apparently slept through every economics class that covered inflation.
The reality is that UBI represents another step toward a socialist economic model that has consistently failed everywhere it’s been tried. The cost estimates for implementing UBI nationwide are staggering. A $1,000 monthly payment to every adult American would cost approximately $3 trillion annually—nearly 70% of the entire federal budget. And we’re supposed to believe this won’t create economic distortions, work disincentives, or massive inflation? Please.
Creating Real Prosperity Through Economic Growth
The American dream isn’t built on government handouts; it’s built on opportunity, hard work, and economic freedom. History has repeatedly shown that free markets, job creation, and economic growth are the most effective tools for lifting people out of poverty. Instead of fostering dependence through UBI schemes, we should be focusing on policies that create real jobs with real wages, reduce the regulatory burden on businesses, and allow Americans to keep more of what they earn through tax relief.
The left’s obsession with UBI reveals their fundamental misunderstanding of economics and human nature. They believe poverty is simply a lack of money rather than a complex social issue tied to education, family stability, and economic opportunity. If the government starts handing out free money, we shouldn’t be surprised when recipients spend it on cigarettes rather than investing in their futures. That’s not a path to prosperity—it’s a road to dependence and economic stagnation.
