r/tuesday • u/PubliusVA Constitutional Conservative • 29d ago

The Impact of Unconditional Cash Transfers on Consumption and Household Balance Sheets

https://www.nber.org/papers/w32784
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u/Ihaveaboot Right Visitor 28d ago

These results suggest that large temporary transfers increase short-term consumption and improve financial health but may not cause persistent improvements in the financial position of young, low-income households.

Well, yeah.

I can promise you the broke 20 something version of me that was awarded $1000/month for some reason would be partying like it was 1999.

The 30 something version would use some to pay off my mortgage.

The 40s something version would be investing in 529 college savings for my kids.

The current 50s version of me - fuck it, I'm stashing it in a bond indexed fund.

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u/ic33 Right Visitor 28d ago

Also, if you were in your 20s and had a guaranteed $1k/month, your financial position would be much less precarious, even if your balance sheet was not much better.