This is an As Told To essay based on a conversation with Wole Coaxum, founder and CEO of MoCaFi, a B corporation that has distributed more than $52 million in guaranteed income base nationwide. It has been edited for length and clarity.
I have been fortunate in my career to be one of the most senior people at JP Morgan. I was managing director and number two in business banking nationally when I saw the images coming out of Ferguson. I said to myself, “It’s 2014 and what we’re seeing is no different than what was happening in 1968.”
The demonstrators were making a statement, motivated by a desire for change. I asked myself, “How can I use my time and talents, which are financial services, to integrate an economic justice agenda with a social justice agenda?” And that inspired me to start MoCaFi.
Martin Luther King Jr. spoke about Universal Basic Income and Guaranteed Basic Income just before he passed away, and I feel that as a company we are very fortunate to be able to stand on the shoulders of others to put these powerful ideas on the market.
We have completed about a dozen UBI and GBI programs across the country. We have facilitated programs in Los Angeles, Atlanta, and San Francisco, among others. Some of them go through the MGI, Mayors for a Guaranteed Income. We find that what we do resonates with cities and counties. They see the value in it.
One of the things I would say in response to red states opposing this is that we are not a political entity. We are simply trying to provide a high-quality platform that ensures that a UBI or GBI program fulfills its mission so that individuals have access to money and can move forward. It’s hard to argue against the idea of channeling government resources more efficiently to citizens. Even my most conservative friends can support more effective government.
We make payments easy in a way that reduces all friction. We have a disbursement platform, then a demand deposit account. We try to take people receiving a UBI and a GBI and provide them with coaching and financial resources. They are not required to operate in cash or cash by check. They can create an FDIC-insured MoCaFi bank account. We can open accounts for undocumented immigrants. We can open accounts for people regardless of their credit score. Now they have a path to economic stability.
There is an old narrative demonizing low-income people who receive government resources. In my opinion, this is not the right perspective. Most, if not all, Americans benefit from the federal government. Why is a universal basic income so different? Why not streamline the process so that the most vulnerable among us can access these funds?
People use money for its intended purpose. This increases savings. This reduces poverty. This increases education. This reduces the need for crime. It gives people more dignity. It makes our neighborhoods safer. This allows families to get jobs they couldn’t otherwise get because they’re paying for child care or health care. The proof is in the pudding.
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