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This fact brief was originally published as an experiment to test the concepts behind fact briefs.

Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

FACT BRIEF

Does preliminary research suggest that universal basic income programs help stimulate the economy?

Saturday, March 6, 2021

By Eric Smith

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YES

While researchers maintain that more data is needed to reach a definitive conclusion, preliminary findings suggest that a universal basic income improves economic outcomes for participants and their communities.

In a cross-analysis of 16 UBI reviews, Stanford Basic Income Lab researchers reported that “UBI-type programs alleviate poverty and improve health and education outcomes” while acknowledging a lack of data on “experimental, sustained UBI, which is considered the gold standard for evidence.”

McKinsey & Company similarly concluded that a nationwide trial in Finland led to “a small increase in employment” and a “huge boost to well-being” while noting that “the body of quantitative evidence for or against a universal basic income is still slim.”

Advocates of UBI support transferring cash regularly to all adult citizens, who may use it however they wish.

This fact brief is responsive to conversations such as this one.

Sources

basicincome.stanford.edu Stanford: What we know about universal basic income—a cross-synthesis of reviews

McKinsey & Company: An experiment to inform universal basic income

Investopedia: Universal basic income

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Gigafact

Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.

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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.