Friedmanism in Finland?

Published January 3, 2017 1:00pm ET



Two thousand welfare recipients in Finland, chosen at random for an experiment, could well determine the future of welfare in that country.

Finland has become the first country in Europe to pay its unemployed citizens a basic monthly income, amounting to 560 euros ($587), in a unique social experiment which is hoped to cut government red tape, reduce poverty and boost employment.

Olli Kangas from the Finnish government agency KELA, which is responsible for the country’s social benefits, said Monday that the two-year trial with the 2,000 randomly picked citizens who receive unemployment benefits kicked off Jan. 1.

Those chosen will receive 560 euros every month, with no reporting requirements on how they spend it. The amount will be deducted from any benefits they already receive … Kangas said the scheme’s idea is to abolish the “disincentive problem” among the unemployed. The trial aims to discourage people’s fears “of losing out something,” he said, adding that the selected persons would continue to receive the 560 euros even after receiving a job.

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