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Question 152·Medium·Cross-Text Connections

Text 1

Economist Lila Cheng argues that providing people with a guaranteed baseline income encourages entrepreneurship. She notes that in pilot programs where adults received a security payment of $1,000 per month, applications for business licenses rose by 22 percent. According to Cheng, the freedom from financial anxiety allows individuals to pursue business ideas they would otherwise deem too risky.

Text 2

Sociologist Diego Ramos acknowledges that financial security can play a role in entrepreneurial activity, but he cautions that money alone rarely propels people to start businesses. Ramos cites cross-national studies showing that regions with high levels of social trust and robust mentorship networks consistently outperform wealthier areas in start-up formation. He contends that without these cultural supports, most people will still avoid the uncertainties of entrepreneurship even if they receive extra income.

Based on the texts, how would Ramos (Text 2) most likely respond to Cheng’s (Text 1) claim that a guaranteed income leads to more entrepreneurship?