11-Year Study: Cash Transfers Don't Cause Harm — They Help

One of the most persistent criticisms of giving people money is that they'll hurt themselves with it. An 11-year study says that's simply not true.

Research published in the American Journal of Epidemiology has examined Alaska's Permanent Fund Dividend — which provides annual cash payments to all state residents — and found no evidence that the payments increase the risk of serious traumatic injury or death.

The study is one of the most comprehensive investigations into the safety of cash transfer programmes ever conducted. As similar programmes expand across the United States and globally, the findings provide critical evidence for policymakers.

Key Facts

• 11 years of data analysed from Alaska's Permanent Fund Dividend (American Journal of Epidemiology)
• No evidence of increased traumatic injury or death (National Today)
• Alaska's PFD provides annual payments to all residents (~$1,000–$3,000/year)
• Published in a peer-reviewed journal

Why This Matters

Critics of cash transfer and universal basic income programmes often argue that giving people money — especially unconditionally — will lead to reckless behaviour, substance abuse, and self-harm. This argument has been used repeatedly to block or scale back proposed cash-based social programmes.

This study doesn't just weaken that argument — it effectively dismantles it. With 11 years of population-level data from a real-world programme, it provides the kind of evidence that's difficult to dismiss.

As cash transfer programmes expand — from guaranteed income pilots in US cities to development aid programmes globally — having robust safety data is essential for building public and political support.

What We Don't Know Yet

Alaska's PFD is a relatively modest annual payment, not a full universal basic income. Results may not generalise to larger payment amounts or different demographic contexts. The study focused specifically on physical harm metrics — it doesn't assess all potential concerns about cash transfers, such as effects on labour force participation or long-term spending patterns.

Sources: American Journal of Epidemiology · National Today
Published 2026-02-20 · Category: Philanthropy & Economics