The Case for Giving Everyone Free Money

Sometime in the last few weeks, or months, or years, you may have heard about this idea called “universal basic income.” It’s the idea that maybe governments should give a monthly stipend—no questions asked—to everyone who lives there. It’s an idea we’ve covered quite a bit over the years, and it’s one that’s increasingly gaining steam among people on both sides of the political spectrum. Conservatives and libertarians say that it can simplify the bureaucracy associated with things like welfare and food stamps, and liberals like it because it would strengthen the social safety net. Why do we need a basic income now? Well maybe you’ve noticed, but automation is slowly but surely replacing a lot of jobs that humans used to do with ones that robots, drones, software, and artificial intelligence can do. We’re looking at a future where it’s possible that there simply won’t be enough jobs for everyone. Maybe that’s a good thing—in a post scarcity society, do humans really need to do menial jobs? And so basic income has been floated as both a cure to automation and potentially a better way to redistribute wealth. The movement is gaining steam around the world: Switzerland voted this last weekend on whether the country should “guarantee the introduction of an unconditional basic income.” The measure failed, but the fact that it was even on the ballot speaks to its increasing relevancy. In the United States, the startup incubator Y Combinator is doing an experiment that will give 100 people in Oakland between $1,000 and $2,000 per month to see how the “mechanics” of a basic income would work and to see what people do with the money. That project is controversial for reasons we get into the podcast. I called up Matt Krisiloff, who is head of the basic income project at Y Combinator, and Elizabeth Rhodes, the research lead of the project, to talk about how it’ll work and why a Silicon Valley startup accelerator is interested in this idea. Then, we talk to Natalie Foster, who is a cofounder of the Universal Income Project, about why she finds the idea so compelling. Finally, we look at the history of basic income around the world and deconstruct the policy itself. Could it ever work?