It looks like Y-combinator is embarking on a basic income experiment similar to what I proposed Mark Zuckerberg do. This is a good thing as it’s still an individual/private group doing experimentation that government can’t/won’t do.
“YC will select 3,000 people across two states and divide them into two groups. The first group will include 1,000 people who will receive $1,000 a month for up to five years. The second group of 2,000 people — which the study will consider its control group — will receive $50 a month.”
Mark Zuckerberg gave a speech for the Harvard commencement ceremony this year (2017). In it he advocated for a universal basic income, which is something I’ve been thinking and reading about for a few years. The most important question about a basic income is “Who pays for the basic income?” Some people have thought about this more than I have. You can read about how one guy thinks we should pay for a basic income here. There have even been a few basic income programs in the past. You can read about one happening in Finland here, as well as in Kenya here.
When you have an idea as big as a basic income you need a path to get there. You don’t just implement a basic income to a whole country. I am often trying to figure out how to implement ideas fast, not necessarily perfectly.
I am excited that someone with as much wealth (from Facebook stock ownership) as well as a desire to change the world for the better (as self reported by Zuckerberg multiple times) is interested in a basic income. Luckily Mark Zuckerberg is a billionaire and his stock is rising, literally. Facebook is worth more every year. This gives Zuckerberg the rare opportunity to implement his own basic income study! No one can stop him! And if it goes well he will be able to prove to people that a basic income is a good thing that should be implemented wider.
If Zuckerberg owns $63 billion in Facebook stock. it should grow at at least 4% a year, which means he could sell $2.5 billion a year, and use that to provide a basic income. Which means he could give 25,000 people a basic income of $100k a year!
Since this is a test and that’s a lot of money and this is supposed to be a basic income, he could provide an income of $30k to say 500 people, this would be $15 million a year, a pittance that Zuckerberg wouldn’t even notice! I think he should do this for say 5 years, and see what happens with those people.
We need this kind of leadership to show us that this type of program could work.
$30k*500 people =$15 million *5 years = $75 million over 5 years.
How much to manage this program? $25 million maybe? (maybe way less!) For a cool $100 million over 5 years.
Until someone is willing to run this type of program and shows that the people who receive the money come out more successful than otherwise, and that they aren’t just being lazy, it won’t receive large scale acceptance.
I believe this is a program Zuckerberg should take on with his new Chan Zuckerberg Initiative LLC (not a charity, which is fine, I think businesses can potentially make more changes in the world than charities, or at least it takes all kinds!). If he wants to contact me to discuss further why I think he should do this he can find me at email@example.com
Alternatively, he could contact the nice people at Give Directly, who I mentioned earlier. They seem more versed in administering something like this and could probably run the program for less than $25 million!