Free Money and Temptation Goods: Exploring the Debate Over Basic Income and Substance Use Disorder

Authors: Gabriel Arang, Adrian Hernandez

Field of Study: Undeclared

Program Affiliation: Source Project Research Program

Faculty Mentors: Will Glovinsky

Easel: 48

Timeslot: Midday

Abstract: Universal Basic Income (UBI) is currently being discussed as a means of reducing poverty, addressing housing insecurity, and improving health. Because poverty and substance use disorder (SUD) share several underlying factors, some advocates argue that UBI could decrease the incidence of SUD. However, critics argue that unconditional cash transfers to people with SUD will lead to greater spending on temptation goods such as drugs. Using empirical evidence such as spending patterns from the Bureau of Labor Statistics and the Mincome experiment, as well as a review of the literature on cash transfers and temptation goods spending, this research analyzes the spending patterns of those in poverty, proving that cash transfers do not always lead to increases in tobacco and alcohol spending. From the data and linked factors between poverty and SUD, one can argue that UBI could address upstream factors of SUD and create the conditions for people to seek treatment.