Pandemic speeds largest test yet of universal basic income

Pandemic speeds largest test yet of universal basic income



Volunteers in Barcelona prepare food packages for vulnerable people. (Xinhua News Agency/Shutterstock)

Spain’s epic economics experiment

Last month, Spain launched a website offering monthly payments of up to €1,015 (US$1,145) to its citizens to spend however they choose. Economists welcomed it as the largest test yet of an idea called universal basic income (UBI). The government estimates that the scheme will cost at least €3 billion per year. Evidence from smaller trials of UBI indicates that the benefits could include better health and higher school attendance. But the scheme is not truly universal — it’s only for 850,000 of the nation’s poorest families. Critics worry that the income limit will create a disincentive to earn more that would act as a ‘poverty trap’ and tarnish the natural experiment.

Nature | 6 min read