What happens when you give 50 homeless people $7,500 each? A B.C. study found out
VANCOUVER — There’s a stark contrast between public perception and the reality of how homeless people spend money, says a researcher who gave 50 homeless people in British Columbia $7,500 each to do with as they wished.
Instead of blowing the windfall on “temptation goods”, such as alcohol, drugs or cigarettes, they spent it on rent, clothing and food, the study led by University of British Columbia researcher Jiaying Zhao found.
The handout even generated a net saving of almost $800 per recipient, taking into account the costs that would have been involved in providing shelter accommodation.
“The goal is to do something about the homelessness crisis here in Canada, and specifically Vancouver because the current approaches are failing,” said Zhao, who is working with policymakers on the problem. “I think this study provides very strong evidence in favour of a basic-income policy.”