$750 a month was given to homeless people in California. What they spent it on is more evidence that universal basic income works.

In California’s Los Angeles County and San Francisco Bay Area, over 100 homeless people were given $750 per month for a year. The study of first six months released results of a basic income and social support intervention reveal what the recipients spent the influx of cash.

Those who are receiving $750 monthly stipend are those who are less likely to remain unsheltered and closer to having enough money to meet all of their basic needs as compared to a control group who accessed usual homeless services.Nearly 20% was spent on housing, 12.7% on transportation, 11.5% on clothing, 6.2% on healthcare, and 13.6% on other expenses that were not classified according to the study.

Only about 2% of this amount would going to be spent on alcohol, cigarettes, or drugs, according to the statement given by Henwood (the director for the Center for Homelessness, Housing and Health Equity Research at the USC Suzanne Dowark-Peck School of Social Work) in an interview with Times; the majority of that money was spent on cigarettes.

According to the study, the proportion of people who reported being unsheltered in the past month dropped from 30% to 12%.

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