NOW NEARLY A YEAR INTO THEIR EXPERIMENT, THE SURPRISING WAY PEOPLE

THEIR EXPERIMENT, THE SURPRISING WAY PEOPLE ARE USING THAT MONEY.

SURPRISING WAY PEOPLE ARE USING THAT MONEY. HERE'S SAM BROCK.

ARE USING THAT MONEY. HERE'S SAM BROCK. >> IN CALIFORNIA'S

HERE'S SAM BROCK. >> IN CALIFORNIA'S CENTRAL VALLEY

>> IN CALIFORNIA'S CENTRAL VALLEY STOCKTON HAS SEEN ITS

CENTRAL VALLEY STOCKTON HAS SEEN ITS SHARE OF FINANCIAL

STOCKTON HAS SEEN ITS SHARE OF FINANCIAL PROBLEMS BUT IS

SHARE OF FINANCIAL PROBLEMS BUT IS BOUNCING BACK.

PROBLEMS BUT IS BOUNCING BACK. IT'S EMBRACING A PLAN

BOUNCING BACK. IT'S EMBRACING A PLAN THAT CAN TRANSFORM

IT'S EMBRACING A PLAN THAT CAN TRANSFORM LIVES.

THAT CAN TRANSFORM LIVES. >> IS STOCKTON A GOOD

LIVES. >> IS STOCKTON A GOOD REPRESENTATION OF WHAT

>> IS STOCKTON A GOOD REPRESENTATION OF WHAT AMERICAN CITIES LOOK

REPRESENTATION OF WHAT AMERICAN CITIES LOOK LIKE?

AMERICAN CITIES LOOK LIKE? >> I THINK ABSOLUTELY

LIKE? >> I THINK ABSOLUTELY IN TERMS OF THE

>> I THINK ABSOLUTELY IN TERMS OF THE PROMISE AND PERIL.

IN TERMS OF THE PROMISE AND PERIL. 20% LIVES IN POVERTY.

PROMISE AND PERIL. 20% LIVES IN POVERTY. >> NOW FOR 125

20% LIVES IN POVERTY. >> NOW FOR 125 FAMILIES A MONUMENTAL

>> NOW FOR 125 FAMILIES A MONUMENTAL CHANGE IN FORTUNE.

FAMILIES A MONUMENTAL CHANGE IN FORTUNE. FUNDED WITH SEED, THE

CHANGE IN FORTUNE. FUNDED WITH SEED, THE CITY SENDS $500 ON

FUNDED WITH SEED, THE CITY SENDS $500 ON DEBIT CARDS NO SPRINGS

CITY SENDS $500 ON DEBIT CARDS NO SPRINGS ATTACHED TO RANDOM

DEBIT CARDS NO SPRINGS ATTACHED TO RANDOM RECIPIENT TO RESIDENCE

ATTACHED TO RANDOM RECIPIENT TO RESIDENCE WHERE THE MEDIAN

RECIPIENT TO RESIDENCE WHERE THE MEDIAN INCOME IS LOW.

WHERE THE MEDIAN INCOME IS LOW. THEY'RE BETTING PEOPLE

INCOME IS LOW. THEY'RE BETTING PEOPLE WILL SPEND WISELY.

THEY'RE BETTING PEOPLE WILL SPEND WISELY. SHE SAYS THE PROGRAM

WILL SPEND WISELY. SHE SAYS THE PROGRAM IS ALREADY BEARING

SHE SAYS THE PROGRAM IS ALREADY BEARING FRUIT.

IS ALREADY BEARING FRUIT. >> WHAT DOES AN EXTRA

FRUIT. >> WHAT DOES AN EXTRA $500 A MONTH MEAN TO

>> WHAT DOES AN EXTRA $500 A MONTH MEAN TO YOU?

$500 A MONTH MEAN TO YOU? >> IT MEANS A LOT,

YOU? >> IT MEANS A LOT, BECAUSE SERIOUSLY

>> IT MEANS A LOT, BECAUSE SERIOUSLY BEFORE SEED CAME

BECAUSE SERIOUSLY BEFORE SEED CAME ALONG, I WAS PAYING A

BEFORE SEED CAME ALONG, I WAS PAYING A LOT OF BILLS AND

ALONG, I WAS PAYING A LOT OF BILLS AND DIDN'T KNOW HOW I WAS

LOT OF BILLS AND DIDN'T KNOW HOW I WAS GOING TO EAT.

DIDN'T KNOW HOW I WAS GOING TO EAT. >> THE GRANDMOTHER OF

GOING TO EAT. >> THE GRANDMOTHER OF NINE LIVES ON A FIXED

>> THE GRANDMOTHER OF NINE LIVES ON A FIXED INCOME.

NINE LIVES ON A FIXED INCOME. HOSTING A FAMILY

INCOME. HOSTING A FAMILY DINNER WAS TOUGH.

HOSTING A FAMILY DINNER WAS TOUGH. >> I HAD TO ASK THE

DINNER WAS TOUGH. >> I HAD TO ASK THE KIDS TO PUT MONEY IN.

>> I HAD TO ASK THE KIDS TO PUT MONEY IN. I WAS SO EMBARRASSED.

KIDS TO PUT MONEY IN. I WAS SO EMBARRASSED. >> CAN YOU DO THAT NOW

I WAS SO EMBARRASSED. >> CAN YOU DO THAT NOW THAT YOU HAVE THIS

>> CAN YOU DO THAT NOW THAT YOU HAVE THIS MONEY?

THAT YOU HAVE THIS MONEY? >> WE'VE HAD A COUPLE

MONEY? >> WE'VE HAD A COUPLE OF REAL NICE DINNERS

>> WE'VE HAD A COUPLE OF REAL NICE DINNERS SINCE THIS GOT

OF REAL NICE DINNERS SINCE THIS GOT STARTED.

SINCE THIS GOT STARTED. THEY LOVE IT BE.

STARTED. THEY LOVE IT BE. >> SHE'S NOT ALONE

THEY LOVE IT BE. >> SHE'S NOT ALONE FRETTING OVER FOOD AND

>> SHE'S NOT ALONE FRETTING OVER FOOD AND SECURITY.

FRETTING OVER FOOD AND SECURITY. ALMOST 40% GOES TO THE

SECURITY. ALMOST 40% GOES TO THE DINNER TABLE, ABOUT A

ALMOST 40% GOES TO THE DINNER TABLE, ABOUT A QUARTER TO PURCHASES

DINNER TABLE, ABOUT A QUARTER TO PURCHASES AT BIG BOX STORIES,

QUARTER TO PURCHASES AT BIG BOX STORIES, THE REST AN UTILITIES,

AT BIG BOX STORIES, THE REST AN UTILITIES, AUTO EXPENKSS.

THE REST AN UTILITIES, AUTO EXPENKSS. ENCOURAGING NEWS.

AUTO EXPENKSS. ENCOURAGING NEWS. >> FROM DAY ONE, A

ENCOURAGING NEWS. >> FROM DAY ONE, A THOUSAND DOLLARS A

>> FROM DAY ONE, A THOUSAND DOLLARS A MONTH FOR EVERY

THOUSAND DOLLARS A MONTH FOR EVERY AMERICAN ADULT.

MONTH FOR EVERY AMERICAN ADULT. >> THIS VISION.

AMERICAN ADULT. >> THIS VISION. >> SEEMS TO ME IS A

>> THIS VISION. >> SEEMS TO ME IS A GUARANTEED ANNUAL

>> SEEMS TO ME IS A GUARANTEED ANNUAL INCOME.

GUARANTEED ANNUAL INCOME. >> DATES BACK TO MLK.

INCOME. >> DATES BACK TO MLK. >> I LEARNED ABOUT

>> DATES BACK TO MLK. >> I LEARNED ABOUT BASIC INCOME FROM

>> I LEARNED ABOUT BASIC INCOME FROM STUDYING DR. KING.

BASIC INCOME FROM STUDYING DR. KING. >> CRITICS COUNTER THE

STUDYING DR. KING. >> CRITICS COUNTER THE MONEY COULD BE MISUSED

>> CRITICS COUNTER THE MONEY COULD BE MISUSED OR DAMPEN EFFORTS TO

MONEY COULD BE MISUSED OR DAMPEN EFFORTS TO GET A JOB.

OR DAMPEN EFFORTS TO GET A JOB. BUT IN STOCKTON,

GET A JOB. BUT IN STOCKTON, THERE'S UPSIDE.

BUT IN STOCKTON, THERE'S UPSIDE. >> IF WE'RE ABLE TO

THERE'S UPSIDE. >> IF WE'RE ABLE TO GIVE THEM 5 HAUNDS A

>> IF WE'RE ABLE TO GIVE THEM 5 HAUNDS A MONTH, THEY'RE ABLE TO

GIVE THEM 5 HAUNDS A MONTH, THEY'RE ABLE TO GET NEW JOBS.

MONTH, THEY'RE ABLE TO GET NEW JOBS. >> SOME HAVE ALREADY

GET NEW JOBS. >> SOME HAVE ALREADY FOUND FULL-TIME WORK,

>> SOME HAVE ALREADY FOUND FULL-TIME WORK, AND OTHERS --

FOUND FULL-TIME WORK, AND OTHERS -- >> IT'S LIKE BEING

AND OTHERS -- >> IT'S LIKE BEING ABLE TO BREATHE.

>> IT'S LIKE BEING ABLE TO BREATHE. >> A RENEWED SENSE OF

ABLE TO BREATHE. >> A RENEWED SENSE OF DIGNITY, EMPOWERMENT.

>> A RENEWED SENSE OF DIGNITY, EMPOWERMENT. THEY'VE THEY'RE HOPING