Image source: Getty Images While it's true that many Americans have racked up debt and depleted their savings accounts in the course of the coronavirus pandemic, a lot of people were struggling financially before the outbreak took place. Living below the poverty line has been a fact of life for many people for years, but some cities are finally taking steps to combat it in the form of basic income programs.The concept is simple -- give qualifying households a certain amount of money each month to help them cover their bills and see what happens. One California city paid residents $500 a month and was one of the first to pilot a basic income program. The results are most definitely eye-opening.A successful initiativeIn February of 2019, Stockton, California, kicked off the Stockton Economic Empowerment Demonstration (SEED) program, which randomly selected 125 participants in need of financial assistance and gave each $500 a month for a period of 24 months. The result? Those who received that money were more likely to go out and find work than those who didn't.Specifically, results of the SEED program show that among those who received money, the unemployment rate dropped from 12% in February of 2019 to 8% in February of 2020. Meanwhile, a control group that didn't receive any payments saw its unemployment rate increase from 14% to 15% during that same time period.Here's why these findings are significant. Those opposed to basic income programs have long argued that government handouts encourage workers to stop going out and finding jobs. But Stockton's experiment proves otherwise -- getting a monthly stipend doesn't necessarily take the place of actual employment.Incidentally, back when jobless Americans were entitled to an extra $600 a week in unemployment benefits under the CARES Act, most continued to look for work despite getting that additional money as well.Let's remember that holding down a job offers more than just an hourly or annual wage. Many employers offer highly-subsidized health insurance benefits on top of the wages they pay -- insurance many workers wouldn't be able to afford if it weren't for those subsidies. That alone is motivation to seek out work.Also, it tends to take money to make money. Those $500 monthly payments could have, in some cases, made it possible for recipients to have a vehicle so they could get to and from a job.Will more cities follow suit?Stockton isn't the only city to set its sights on basic income. Last year, a number of cities formed a coalition to roll out similar programs. These included:Jackson, MississippiSt. Paul, MinnesotaNewark, New JerseyCompton, Los Angeles, CaliforniaOakland, CaliforniaStockton, CaliforniaShreveport, LouisianaTacoma, WashingtonColumbia, South CarolinaAtlanta, GeorgiaAs more cities bring these programs to life and collect data on them, we could see an uptick in basic income initiatives if the impact is overwhelmingly positive. Of course, the extent to which these programs are rolled out will also depend on available funding, as the money for them needs to come from somewhere. But Stockton's experiment makes the case that it pays to keep pursuing these programs and that they have the potential to create positive changes for underserved communities throughout the country.Top credit card wipes out interest until 2022If you have credit card debt, transferring it to this top balance transfer card can allow you to pay 0% interest for a whopping 18 months! That’s one reason our experts rate this card as a top pick to help get control of your debt. It’ll allow you to pay 0% interest on both balance transfers and new purchases until 2022, and you’ll pay no annual fee. Read The Ascent's full review for free and apply in just 2 minutes.We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.Source