As California plummets into financial collapse, one city hopes the answer might be giving away cash to residents

The crime-ridden and poverty-stricken city of Stockton, located in central California, has come up with a plan for prosperity that involves handing out free cash to poor people.

Stockton Mayor Michael Tubbs, 27, says that giving local residents a “no strings attached” guaranteed basic income of $500 per month is precisely what will elevate Stockton to new economic heights.

Taking a page straight from the universal basic income schemes that have already been tried, and scrapped, in European countries like Finland, Tubbs’ plan is to somehow create wealth out of thin air by giving people money.

He told local media that a select group of local Stockton residents will be given the monthly stipend as part of an 18-month experiment to see how people use the money, allowing authorities to assess whether or not it actually works.

“And then, maybe, in two or three years, we can have a much more informed discussion about the social safety net, the income floor people deserve and the best way to do it because we’ll have more data and research,” Tubbs says.

Facebook co-founder Chris Hughes behind this and other “free money” initiatives

And just where will all of this magic money come from, you’re probably asking yourself? From The Economic Security Project, a “philanthropic” network that’s co-chaired by Facebook co-founder Chris Hughes.

Hughes is one of a number of multi-millionaire technocrats who’s currently pushing for universal basic income trials to take place in locales all across the country and world. He believes that procuring money out of thin air and giving it to people will somehow create sustainable “wealth.”

In Stockton, local authorities will divvy out $1 million to select poor people who will be tracked and monitored as to their spending habits.

“I jumped at the opportunity,” Tubbs told local media, claiming that such a concept is replete throughout the writings of civil rights leader Martin Luther King Jr.

Hughes and other technocrats think high-earning producers should pay for poor people to be given free money

Tubbs seems to be in agreement with Hughes, who is right now pushing for all Americans who make less than $50,000 per year to be given $500 per month from the government for doing nothing.

The total cost of such a program would be $290 billion per yer, which Hughes would pay for by taxing every American who earns more than $250,000 per year at a rate of 50 percent both on income and capital gains.

In other words, Hughes wants to establish an economic model in the United States that resembles the one currently in place in the South American country of Venezuela, which is right now in the throes of total economic and societal collapse.

And that’s really the kicker here: Stealing money from producers to give it to non-producers doesn’t create wealth; it actually creates more poverty in the long run.

That’s because socialism, a.k.a. redistribution of wealth, dis-incentivizes labor and innovation. Those who actually do these things don’t want to be robbed from by the government, so they end up leaving for greener pastures, or they simply stop working themselves.

At some point, there’s no more money to hand out “for free,” which leaves everyone in poverty, and society in shambles.

This is the point of view of the Organization for Economic Cooperation and Development, which argues that providing universal basic income won’t even work unless those with higher incomes are taxed into oblivion – which only works for so long until it eventually doesn’t.

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