In a groundbreaking move for the city, St. Paul's guaranteed income experiment has yielded significant benefits for its participants, according to a new study revealed by Mayor Melvin Carter and covered in a FOX 9 report. Spanning from October 2020 through April 2022, the People’s Prosperity Program granted $500 monthly payments to select residents, with recipients experiencing increased employment, better housing, and improved physical and mental health. Specifically, employment among participants jumped from 49% to 63% six months post-program.
Critics, however, aren't entirely sold on the concept. Anna Mathews, Executive Director of the Minnesota Republican Party, expressed concerns to KARE 11, stating, "Instead of fostering self-reliance and individual responsibility, guaranteed income programs create a culture of dependency on government handouts, stifling personal initiative and economic growth." Mathews also highlighted the potential burden on taxpayers and called for market-driven solutions to empower residents toward financial success.
From the viewpoint of the beneficiaries, the program has been life-changing. St. Paul resident Damara Clark explained in a KARE 11 interview how the initiative granted her family, including her 3-year-old daughter with spina bifida, breathing room for handling bills and expenses. "That's definitely going to give her an incentive that she can do whatever she wants to do," Clark said, praising the program and its associated college savings initiative, CollegeBound Saint Paul.
Aside from the social impact, the funding structure of the program stands out. The city harnessed a combo of federal, state, and philanthropic dollars, which included contributions from the federal COVID-19 Aid, Relief, and Economic Security (CARES) Act. In doing so, St. Paul has become a test case for how public funding can support such a guaranteed income model, with Mayor Carter doubling down on the potential of such policies to combat poverty in a statement obtained by FOX 9.
To learn more about the broader push for guaranteed income in America, visit the Mayors for a Guaranteed Income website, a coalition that now boasts the partnership of over 125 mayors.
