Stockton, California, was a bankrupt city. It is expected more and more cities will file for bankruptcy as taxable revenues dry up and property values plummet. And as an increasing number of communities are impacted by more severe storms, fire, flood and drought.

Chris McKenna is executive director of the League of California Cities. By filing for bankruptcy, cities will be able to keep police and firefighters on the street and possibly keep some parks and libraries open while they work out their finances, he said.

More municipal bankruptcies are likely in California and throughout the nation, as cities continue to battle rising costs and a weak economy, said Eric Hoffman, an analyst at Moody’s. Still, “we don’t expect it to be widespread,” he said.  https://money.cnn.com/2012/07/12/news/economy/california-bankruptcies/index.htm

Soon Stockton will give 100 residents $500 a month for 18 months, with no strings attached.

“The nontraditional system for distributing wealth guarantees that citizens receive a regular sum of money. The goal is to create an income floor no one will fall beneath. The concept of Universal Basic Income has gained traction and support from some Silicon Valley leaders, including Elon Musk, Richard Branson and Mark Zuckerberg. It is seen as a way to possibly reduce poverty and safeguard against the job disruption that comes from automation.”   https://www.msn.com/en-us/money/markets/stockton-california-to-give-dollar500-in-basic-income-to-some-residents/ar-AAzOrK1?ocid=spartanntp

According to Facebook co-founder Chris Hughes, “It is such a fundamental idea behind America that if you work hard, you can get ahead — and you certainly don’t live in poverty. But that isn’t true today, and it hasn’t been true in the country for decades,” Hughes said. “I believe that unless we make significant changes today, the income inequality in our country will continue to grow and call into question the very nature of our social contract.”

This year Finland begins to explore Universal Basic Income by giving 2,0000 people nearly $600 per month, whether they work or not.

“The idea is that a universal income offers workers greater security, especially as technological advances reduce the need for human labor. It will also allow unemployed people to pick up odd jobs without losing their benefits.
The initial program will run for a period of two years. Participants were randomly selected, but had to be receiving unemployment benefits or an income subsidy. The money they are paid through the program will not be taxed.
If the program is successful, it could be expanded to include all adult Finns” https://money.cnn.com/2017/01/02/news/economy/finland-universal-basic-income/?iid=EL

Canada’s province of Ontario began a program this year that gives 4,000 residents $12,600 a year.

Since the 1980’s Alaska has been giving annual cash payments to all residents from the state’s oil revenues.

I hope the idea of Universal Basic Income spreads. Increasing numbers of people in this country live in poverty while corporations continue to accumulate vast wealth.

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