Keywords
a reduced cognitive capacity
FRAGILITY, SHOCKS
In 2017, Basu characterized income volatility as a public health threat [Empirical evidence from behavioral economics and public health demonstrate that the constant experience of scarcity generates less competence, coping, and a reduced cognitive capacity for decision-making, which can exacerbate financial fragility and uncertain employment conditions [Given few empirical priors to theoretically ground a pathway of change for guaranteed income, we ground our hypotheses on the counterfactual. Receipt of a consistent unconditional monthly cash payment should mitigate income volatility and some financial stress. Reduction of some financial stress should allow recipients to meet basic needs and weather unforeseen financial shocks more easily. The ability to do so should lower psychological and emotional distress, freeing up a person’s cognitive pathways to imagine and pursue new opportunities. The Stockton Economic Empowerment Demonstration (SEED) launched in 2018. SEED provided a monthly unconditional cash transfer, or GI, of $500 for 24 months to answer: How does GI impact monthly income volatility? To what degree does a GI impact psychological distress, and physical functioning? How does GI generate agency over one’s future? How were financial wellbeing and agency attenuated by the pandemic?