A new study led by scientists at New York University (NYU) challenges common fears about cash distributions, showing that providing annual payments to citizens does not result in chaos as critics often claim. The focus of the research was Alaska's Permanent Fund Dividend (PFD), which has been providing residents with a yearly sum since 1982, typically ranging from 920 to 1840 euros per person. Critics argue that such 'free lunches' can exacerbate negative human behaviors, but this study provides evidence to the contrary.

The PFD has operated as a significant social experiment, allowing researchers to analyze the psychological and social effects of cash payments in a controlled environment. The findings indicate that rather than leading to irresponsible behavior or dependency, the annual distributions have contributed to greater financial stability and improved quality of life for residents. This research sheds light on the potential of universal basic income initiatives, especially in contexts where there is skepticism about their implementation.

As debates over economic policies and social welfare programs continue, this study highlights the need for empirical evidence to guide decisions. The evidence from Alaska supports the idea that direct cash payments can be beneficial, reducing poverty and fostering a more equitable society. Institutions considering such programs may find this data reassuring, as it counters the narrative of chaos and irresponsible spending often associated with cash distributions.