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Finland wants to give all citizens, rich or poor, a monthly payment

A basic income would encourage more people to work, the thinking goes, as opposed to disincentivizing them under the current system by taking away their benefits when they start to earn an income.

Finns protest against government cutbacks at the Central Railway Station in Helsinki, September 18, 2015.

Heikki Saukkomaa/Lehtikuva/Reuters

December 6, 2015

As it struggles with unabated unemployment and zero economic growth, Finland wants to try replacing its bureaucratic welfare system with a much more simple one: a monthly payment of 鈧800, or $870, to every citizen, with no strings attached.

The Finnish government says it wants to launch a 鈥溾 in 2017 to test the feasibility of this program, which would replace the country鈥檚 current benefits system.

The Nordic country is grappling with a nearly 10 percent unemployment rate, an aging population, and little hope for significant growth in the near future, said the country鈥檚 ministry of finance in a gloomy economic report this fall.

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鈥淭he Finnish economy is in an extremely difficult situation,鈥 wrote the ministry.

A basic income would encourage more people to work, the thinking goes, as opposed to disincentivizing them under the current system when they start to earn an income.

The experiment, which will be designed in the latter part of next year, will help the Finnish government understand whether this program would work on a national level, says Ohto Kanninen, an economist at Finnish think tank, T盲nk, which is collaborating with the country鈥檚 government and several universities on the experiment.

"What would be the impact of a basic income to employment in Finland 鈥 positive or negative? with a basic income," Dr. Kanninen told the BBC.

Kela, the country鈥檚 social security administration, says 70 percent of respondents in its recent survey were in favor of payments of 鈧1,000 per month. And Finns in April elected the country's Centre party, which , to a controlling position in the government, reports Mashable. 聽

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introducing a universal payment as well, with聽49 percent of Swiss supporting the idea.

The idea of paying citizens has been circulating for decades, with a handful of experiments conducted in the US and Canada in the 1960s and 鈥70s to test the concept.

One of the most famous was in the Canadian city of Dauphin, in Manitoba, between 1974 and 1979, when all its residents received monthly payments.

According to University of Manitoba economist Evelyn L. Forget who wrote a report called, 鈥溾 in 2011, the payments helped reduce poverty and even some health problems in Dauphin.

In the US, libertarian economist Milton Friedman championed the idea of a 鈥渘egative income tax,鈥 where instead of paying the IRS taxes based on income, . 聽

Martin Luther King Jr. supported the program, as did president Richard Nixon, who unsuccessfully tried to pass the welfare reform in the late 1960s.

In a series of controlled experiments that the US government conducted around the country to test a basic income program during that time, it was found that the payments didn鈥檛 seem to affect poverty levels, and that participants receiving payments, particularly black families, appeared to divorce at much higher rates than the control groups, according to Dr. Forger鈥檚 paper.