Elon Musk and other tech leaders call universal income the future. These families got $1K+ a month for a year: ‘It felt like I had won the lottery’

The answer, in many cases and to various degrees, may be yes — but that doesn’t have to be a negative thing, argue tech gurus.

Those at the cutting edge of AI truly seem to believe that, alongside all of its dangers, the technology will herald unthinkable economic prosperity.

OpenAI CEO Sam Altman foresees “universal extreme wealth,” with everyone getting a share of what AI creates, while Elon Musk predicts that “universal high income” will become a reality when machines are able to produce enough to eliminate scarcity, leaving us to laze about and reap the rewards.

But what happens in the meantime — that is, if we ever reach — the “penthouses for all” stage of AI’s curve? Is guaranteed income at all manageable now in the present-day world?

The costs and benefits of UBI now

One recent trial of universal basic income in the U.S. targeted people laid off due to AI. The pilot project began sending out $1,000 per month to a handful of individuals back in March, using money raised through donations to the Fund for Guaranteed Income.

In total, the fund says it has dispersed some $25 million to thousands of Americans. But it’s all funded by private sector entities, while most think of UBI as being government-funded. With tax dollars stretched, and national debt having grown to insurmountable levels, it’s hard to imagine such an initiative, which would cost trillions annually, would ever be feasible.

Calls to increase taxes on the highest-earning individuals and their companies are ongoing. Oregon even proposed levying businesses earning more than $25 million per year and delivering that money directly to residents.

But ramping up taxation doesn’t always play out well in reality, as it can stymie investment and entrepreneurship, prompt capital and job flight and can be perceived as a punishment for success.

For those who have been lucky enough to participate in a UBI project, though, the help can be life-changing.

‘It felt like I had won the lottery’

As part of a recent $50 million campaign to address homelessness in the Bay Area, Google has worked with non-profits to offer locals cash support to get them off the streets. Monthly checks were distributed to select residents, who were then followed to measure the impact.

The New York Times checked in with some recipients, finding that the instant benefits such as “breathing room for groceries, rent and other expenses” were undeniable.

But the outlet added that “the success of the payments in another area — giving people more free time and opportunity in the long term — was mixed.”

One woman was able to better provide for herself and her one-year-old, as well as help support her mother and sister, who were also on social assistance and ended up moving in with her. She said the gift was like “being given a head start.”