Latest news with #UBI
The Sun
7 hours ago
- Business
- The Sun
Economists laud RM100 aid as timely respite for households
PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim's latest cost-of-living relief plan is drawing praise from economists, who say the RM100 one-off cash handout – expected to inject RM2.2 billion directly into the domestic economy – could provide an immediate boost in spending and ease the burden on struggling households. Dr Mohamad Idham Md Razak, senior lecturer at Universiti Teknologi Mara (UiTM) Puncak Alam, said the cash aid, which will be given to all Malaysians aged 18 and above, could act as a short-term economic stimulus, particularly for youths and low-income groups. 'With three adults in a household, that's RM300. It's a quick injection that could lift spending on retail, food and essentials and support small traders. 'But without follow-up measures such as job creation or sustainable financial aid, the effect may not last,' he told theSun. He said Anwar's broader cost-of-living package – including fuel subsidy adjustments, expanded food assistance and a freeze on toll hikes – signals the government's effort to tackle inflation and shield household income on several fronts. He highlighted the RM600 million boost for the Jualan Rahmah programme as one of the most strategic moves. 'By offering essential goods at discounted prices, this directly lowers household spending and helps cushion inflation.' Mohamad Idham also welcomed the toll hike postponement involving 10 highways, saying it would ease the burden on daily commuters and small business operators. 'This brings real relief, especially for those travelling long distances for work. It helps preserve consumer spending and dampens inflationary spillover. But ultimately, the government needs a more sustainable model for infrastructure financing.' On fuel subsidies, he said the government is on the right track. 'We welcome this, but the government should also explore targeted options, with added support for the M40 through tax breaks or tailored cash aid.' Economist Professor Geoffrey Williams described the cash handout a 'smart and meaningful' initiative that could serve as a test bed for a Universal Basic Income (UBI) framework. 'This is an unconditional, automatic cash transfer – no applications, no eligibility hurdles. That's the DNA of a UBI. 'If scaled up, it could evolve into monthly payments and pave the way for reforming the STR (Sumbangan Tunai Rahmah) and SARA (Sumbangan Asas Rahmah) schemes.' Williams suggested Malaysia could even lead globally in rolling out a nationwide UBI model. 'If developed properly, it could be a bold signature of Anwar's social policy legacy.' He added that the move is financially viable, especially with savings from the ongoing subsidy rationalisation drive and would generate a ripple effect in local economies. 'For the B40 and lower M40 groups, RM100 is significant. Most of it will be spent in neighbourhood shops and stalls – directly stimulating grassroots demand. It can help lift consumer spending in the second half of the year.' Williams acknowledged the public's scepticism, but urged Malaysians to view the move on its merits. 'This is a solid step forward. The government deserves credit for it.' The RM100 cash aid, set to be disbursed via MyKad from Aug 31, is expected to benefit over 22 million Malaysians. It complements existing food subsidies, fuel support and frozen toll rates under the government's multi-pronged strategy to ease living costs.
Miami Herald
8 hours ago
- Business
- Miami Herald
$50 a week for 40 weeks: How no-strings cash changed the lives of teens
NEW ORLEANS - Kapri Clark used the $50 to help pay for her braces. Lyrik Grant saved half of it, and used the rest for dance classes. Kevin Jackson said he squandered the cash, on wings, ride shares for dates and some DJ equipment he later tossed. For the past five years, Clark, Grant, Jackson and hundreds of high schoolers in New Orleans have shopped - or saved - as part of a project to explore what happens if you give cash directly to young people, no strings attached. "That was the most helpful thing ever," said Clark, now a student at the University of Louisiana at Lafayette, who said she could still use that extra cash. "The $50 study," as it's known, began at Rooted School, a local charter school, as an experiment to increase attendance. The study has since grown to eight other high schools in the city, as well as Rooted's sister campus in Indianapolis, with students randomly selected to receive $50 every week for 40 weeks, or $2,000 total. By comparing their spending and savings habits to a larger control group, researchers wanted to figure out whether the money improved a teen's financial capability and perception of themselves. They also wanted to know: Could the cash boost their grade-point averages and reading scores? Now, as the experiment expands to Washington, D.C., and perhaps Texas, a final report of the $50 study suggests a little bit of spending cash can make a difference in young people's lives. The report, released Tuesday, shows students who received the cash payments were slightly more likely to attend school than those who didn't. Academic performance did not differ between the groups. But financially, the extra cash helped students acquire stronger long-term planning skills and familiarity with savings accounts and other financial products. They ended the study, on average, with $300 saved away - a 15 percent savings rate, triple the national average for American adults. "When young people are given the opportunity to manage money in low-stakes environments, they build the habits that shape long-term financial health," said Stacia West, an associate professor at the University of Tennessee, Knoxville and co-founder of the Center for Guaranteed Income Research, which partnered with the Rooted School Foundation to run the study. "The short-term habits we're seeing are laying the foundation for lifelong financial capability." Related: A lot goes on in classrooms from kindergarten to high school. Keep up with our free weekly newsletter on K-12 education. Across the United States and the globe, hundreds of communities have tinkered with some form of universal basic income, or UBI, a social welfare program that provides people with regular cash payments to meet their needs. Direct cash transfer programs like the $50 study or the child tax credit for families are similar, but they often provide smaller amounts and target specific populations to boost a person's income. Many studies have linked UBI to financial stability and better employment and health outcomes. In the U.S. and Canada, researchers have found links between cash transfer pilots that focus on low-income families and better test scores and graduation rates for their kids. So far, though, few experiments have targeted young people or examined how the programs influence their lives specifically. "There's a deep, deep distrust that we adults have of young people," said Jonathan Johnson, CEO of the Rooted School Foundation, which operates the network's four charter schools. "That distrust is to their detriment." In New Orleans, roughly 4 in 5 of Rooted students come from economically disadvantaged families, and during the pandemic, many struggled to prioritize school. Some students skipped class to provide child care for their working parents, or because they needed to work themselves, according to Johnson. With some seed funding from a local education nonprofit, Rooted started a "micropilot" to test whether cash could help students make ends meet and get themselves to school. The original cohort included 20 students, half of whom received the $50 payment. In that micropilot, those receiving the cash saw their material wellbeing improve, meaning their family could more easily afford rent or utilities, and they gained skills around setting financial goals. Rooted added students from its Indianapolis campus and another high school in New Orleans, G.W. Carver. And for their final report released this week, researchers sifted through the spending and survey data from 170 students who received the cash payments and 210 students who did not. The two-year report found students in the treatment group attended 1.23 more days of school, and spent close to half their funds on essentials like food and groceries. The report also noted that 70 percent of all students at the participating schools qualify for subsidized meals, suggesting "this spending may reflect efforts to meet immediate nutritional needs." One 12th grader in a survey mentioned using the money to feed their siblings. Kapri Clark recalled waiting every Wednesday morning for the $50 deposit to appear in her banking app. And every Wednesday afternoon, during her senior year at Carver High School, she put that money toward her $200 bill for braces she covered out of pocket. She braided hair to cover the rest, and still books clients when she has time in between her studies to become a nurse at the Lafayette campus. Even in college, Clark can see the need for some supplemental income for herself and her peers. "I make enough to take care of myself, but I watch every dollar," said Clark. "There's a lot of people struggling in life to eat, to live. Think if they got kids." Read Irvin, chief of staff for Collegiate Academies in New Orleans, a network of five charter high schools that includes Carver High, said the $2,000 had provided the extra incentive a few students needed to stick it out until graduation. "That's incredibly impactful for their life trajectories," she said. Related: How to help young kids: Give their parents cash In January 2024, the city of New Orleans invested $1 million to bankroll another extension of the study, as part of an economic mobility initiative that tapped federal Covid relief funding. During the pandemic, a skyrocketing murder rate and spike in overall crime had convinced the city to help more residents, especially young people, find stability. "Research shows that people who are economically stable are less likely to commit crime," said Courtney Wong, the city's deputy director of economic development. The city funding not only expanded the $50 study to nine high schools, it also set a longer timeline for the research: About 800 seniors who participate will have their data tracked for 18 months after their graduation. A former high school teacher and administrator, Wong said $50 could have made a difference in the lives of many of her former students. "This targets young people in that perfect moment," she said. "They're in the right spot where even a little amount of help could have big, positive impacts before issues of crime or unemployment or things like that even come up." Researchers also found students who received the $50 reported greater agency. They felt more control over their finances and more confidence about making long-term financial decisions. Students, according to the report, aligned their spending to future goals such as college prep classes and getting a driver's license. Lyrik Grant, a rising junior at Carver High School, is the second-youngest of six kids with two working parents. She could ask them for help, but the $50 allowed Grant to afford the tights and tops she needed for dance class on her own. The money helped cover a college entrance exam, which she aced, and Grant wants to learn how to drive soon. "My first thought was: What am I going to do with all this money?" Grant said, adding that the cash helped some of her classmates find financial stability. "Children don't always want to spend their parent's money, and some parents don't always have money to give them." Still, for some students, the money wasn't exactly life-changing. Irvin of Collegiate Academies said many used the cash to "just be teenagers." That was true for Kevin Jackson, a rising junior at Rooted School New Orleans. "It's cool to get free money," he said. "I was spending it on the TikTok shop: posters, keyboards, lights - stuff I liked, not stuff I actually needed." Related: All-charter no more: New Orleans opens its first traditional school in nearly two decades Despite the studies that show a positive impact from UBI, many Americans appear skeptical of the idea of a federal program that gives unconditional financial support to people. Aditi Vasan, a pediatrician and researcher at PolicyLab at the Children's Hospital of Philadelphia, said skeptics often worry about recipients using public dollars for drug use or other illicit behavior, even though the data does not support that. Still, that fear will likely keep any large-scale cash transfer program from being adopted in the United States any time soon, she said. "That concern exists certainly for cash transfers in general but might be particularly magnified for teens," Vasan said. "We've not seen that play out in the evidence from the quality studies that have been done." Next year, in Washington, D.C., the nonprofit Education Forward will fund a pilot of the $50 study with 40 high schoolers. The Rooted school network resumed talks, meanwhile, to take the study to neighboring Texas, after state lawmakers earlier this year failed to pass legislation that threatened to ban local governments from adopting guaranteed income programs. Talia Livneh, senior director of programs for the Rooted School Foundation, said the politics may need to catch up to the research. "I don't think what we're doing is so radical. I believe this just works," she said. "Kids don't lack character. They lack cash," Livneh added. "They deserve deep, deep trust that students and people know what's best for them." It's been four years since Vernell Cheneau III received the $50 for 40 weeks while a student at Rooted in New Orleans, and his economic life isn't easy. He struggled for months to find part-time work in his hometown. But on a recent summer morning, the same day he finally received a job offer, Cheneau recalled what he learned from the study. "You learn that money goes fast, especially if it's free," said Cheneau, 22. As a student, he tried to use the money to build some credit history. Since then, he's learned the full cost of being an adult in America: health care, fuel and maintenance for his car, getting your hair done before a new job. Cheneau has also spent that time trying to convince friends and family to support UBI. Most oppose giving "free" money to people, he said. "How much does it cost to feed children? Get to work? We can't just allow people to drown." "Everything costs something," Cheneau added. "If you're stuck in a rut, it's expensive to restart. In this country, it's expensive to be poor." Contact staff writer Neal Morton at 212-678-8247, on Signal at nealmorton.99, or via email at morton@ This story about cash transfer programs was produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up for the Hechinger newsletter. The post $50 a week for 40 weeks: How no-strings cash changed the lives of teens appeared first on The Hechinger Report.
Times
11 hours ago
- Business
- Times
Universal basic income is not the answer if AI comes for your job
As artificial intelligence upends the world of work, brace for renewed advocacy of a universal basic income (UBI). Tech enthusiasts, certain AI will turbocharge productivity but at the cost of millions of jobs, see UBI as a necessary monetary cushion for technological unemployment. And their cause attracts strange bedfellows. Social democrats salivate at the prospect of having more stigma-free redistribution; libertarians hope UBI might supplant employment regulation and the means-tested welfare state. Yet UBI's most fervent supporters foresee much broader benefits. To many, UBI isn't just a palliative for creative destruction or even a welfare reform. No, its proponents claim a modest government-guaranteed income is the key to unlocking a freer, healthier, more entrepreneurial society. If only it were that simple. Interest from the tech world has enabled expensive randomised controlled trials of UBI-inspired policies in the US. The results are largely disappointing. • Germans happier — but not lazier — with extra €1,200 a month In the OpenResearch Unconditional Income Study, 1,000 low-income participants across Texas and Illinois were given $1,000 a month, no strings attached, for three years. A control group of 2,000 received $50. One working paper released this week confirms the findings of another last year: the policy was no silver bullet for most economic and social problems. Advocates hoped extra income for families would mean more attentive parenting, greater investment in children's education and reduced family stress. And yes, parents receiving more money reported smacking their kids less and spending $32 more on them each month, including for clothes and essentials. Yet this didn't translate into educational gains or improved behavioural outcomes. In fact, parents reported a jump in issues such as child hyperactivity and fights between children. The researchers speculate that the extra cash freed parents to monitor children more closely, so noticing these problems. But might more intense supervision — edging towards helicopter parenting — itself worsen these outcomes? Nor did parents themselves get lasting relief. Sure, there was a brief improvement in their mental health in year one, but this faded quickly. By year two, anxiety and stress were back where they started. Free cash might calm nerves temporarily, but it didn't buy lasting peace of mind. A paper last year on the same experiment poured cold water on the idea that a guaranteed income would free people to invest in their productive future, too. Recipients, on average, banked the extra cash and enjoyed more leisure time, reducing their earned income. Yet there was little evidence that they used those extra hours to find better job matches, invest in education, or start (rather than just thinking about starting) a business. Instead, passive dependency grew. Even health outcomes showed scant improvement, with self-reported disability rising somewhat. Predictably, UBI's most die-hard supporters have questioned these disappointing results. Is it really a test of 'universal' income if the cash isn't given to everyone, permanently, but targeted temporarily at a young group volunteering to trial? But their quibbles cut both ways. The main reason governments reject UBI out-of-hand is that it is prohibitively expensive. With 69.6 million people, giving everyone in the UK £1,000 monthly would cost £835 billion a year — almost four times the NHS budget. • Britain is broke: how inflation-linked debt costs us £60bn Trials like this, conveniently, never test the higher taxes required to redistribute such sums. And being targeted at those on low incomes to begin with, one suspects this trial's results are, if anything, biased towards overestimating any benefits of the policy. Surely the uncomfortable truth is that most economic and social problems are too complex to solve by handing out cash. Children's development, adult mental wellbeing, and accessing fulfilling work require robust institutions, skills, and countless other factors that money can't buy. Yes, cash definitely helps ease poverty, and this trial confirms that beneficiaries were able to spend and save more. Yet as UBI enthusiasm resurfaces, the results suggest that seeing taxpayer-funded cash handouts as the path to widespread happiness and self-actualisation isn't visionary; it's delusional. Ryan Bourne is an economist at the Cato Institute and editor of the book The War on Prices
Hans India
5 days ago
- Business
- Hans India
Archer Surekha feted
Vijayawada: RenownedIndian archer Vennam Jyothi Surekha, who brought immense pride to the nation with her stellar performance at the recent Archery World Cup Stage-4, was felicitated in Vijayawada. Surekha secured a hat-trick of medals, winning two silver and one bronze in the three categories she competed in. She also set a new world record in the mixed doubles category. To honour her remarkable achievements, CVN Bhaskar Rao, State SLBC Convenor and Field General Manager of Union Bank of India, Vijayawada Zone, along with MV Tilak, head of Vijayawada Region, felicitated Surekha at her residence. Surekha's father, Vennam Surendra, and Lead Bank Manager Priyanka were also present at the event. Speaking on the occasion, FGM Bhaskar Rao said, 'Jyothi Surekha's incredible achievements are enhancing the nation's reputation globally. We sincerely wish her continued success in winning more medals for India and are proud to have her as a UBI customer.'
Business Insider
6 days ago
- Business
- Business Insider
Ubisoft Stock (UBSFY) Slips on New Leadership Changes
Ubisoft (UBSFY) stock was down on Thursday after the video game company appointed leaders for its new spin-off. Christophe Derennes and Charlie Guillemot are the new co-CEOs of the company's spin-off with Tencent (TCEHY). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Derennes is joining the Ubisoft and Tencent spin-off, leaving his role as the managing director for Ubisoft's North America business. Guillemot is the son of Ubisoft co-founder Yves Guillemot. Guillemot addressed claims of nepotism, saying, 'Yes, I'm Yves' son. That's not something I hide from. But my appointment isn't only about family ties; it's about what Ubisoft needs at this moment.' Ubisoft and Tencent have created the new spin-off to change the game developer's operating model. This spin-off now holds the rights to the Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six brands. These are some of Ubisoft's biggest series, and this change will allow a better focus on them. Ubisoft Stock Movement Today Ubisoft stock was down 0.7% on Thursday, signaling possible displeasure from investors over its picks to lead its new spin-off with Tencent. The shares have also fallen 22.46% year-to-date and were down 56.41% over the past 12 months. The poor performance of Ubisoft's stock over the last year was the result of ongoing struggles at the video game developer. There was speculation earlier this year that it was about to file for bankruptcy. However, that appears to have been avoided thanks to Tencent's $1.25 billion investment in the company. Is Ubisoft Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Ubisoft (UBI) is Hold, based on two Buy, six Hold, and three Sell ratings over the past three months. With that comes an average UBI stock price target of €11.31, representing a potential 20.01% upside for the shares.
