Results of Finland’s Free Money Experiment

Basic income is a system in which the government grants its citizens a certain amount of money at no cost. This idea is a proposed solution to financial inequality and poverty and has been the subject of experimentation in several countries – notably Canada. In a recent experiment, Finland randomly selected 2,000 unemployed citizens and gave them 560 euros (or $635) per month, in hopes that establishing basic income as a safety net would prompt lower unemployment rates.  

While the final report won’t be published for another year, the two-year experiment yielded no significant effect on employment.  Researcher Miska Simanainen reports that the likelihood of those in the experimental group to seek employment was no greater than a control group who received no basic income. However, the experiment did produce other significant data: The 2,000 who received the money were, in general, happier than the control group.  Researcher Minna Ylikanno notes that basic income caused “less stress symptoms as well as less difficulties to concentrate and less health problems.”

The experiment’s results raise questions about basic income. Instituting basic income has advantages; it has noticeable effects on psychological stability, and thus would save government money spent on stress-related health problems.  Critics mention that, as a free handout, it is unnecessary and too expensive to implement. As for one participant, the experiment was largely inconsequential. Former newspaper editor Tuomas says, “I can’t say that the basic income has changed a lot in my life. OK, psychologically yes, but financially – not so much.”