Would reparations lead to irresponsible spending? Studies on other cash windfalls suggest not, new report says.

The perception that people often succumb to misfortune and bad decision-making after suddenly receiving large amounts of cash isn’t based in fact, researchers said in a report published Thursday by the Roosevelt Institute, a progressive think tank. That means potential reparations payouts to Black Americans are unlikely to result in reckless spending, financial ruin and reduced labor productivity, the report’s authors wrote after undertaking a review of prior research concerning consumer behavior after lottery windfalls and inheritances, as well as more minor cash transfers through tax refunds and guaranteed-income programs.