A private tech company in Oakland is experimenting with providing a hundred families with $1500-2000 monthly. Katie felt the experiment has a libertarian feel to it because it may eliminate the vast bureaucracy that has built up around the welfare state but acknowledged that it only works if the welfare state is disbanded.
Read more and watch the video interview at The Blaze
Katie Modesitt of the Independent Institute calls in from California to discuss her piece in the San Francisco Examiner on a Universal Basic Income experiment. Silicon Valley is trying out this much debated approach to poverty and Katie makes a compelling case for taking this experimentation seriously.
“We’re about to experience a change in our economy on the scale of the agricultural or industrial revolution,” announced Sam Altman, the president of Y-Combinator, to a San Francisco audience.
Due to artificial intelligence, 62 percent of American low-skill jobs are at risk. The median probability of automation replacing the lowest-paid jobs is about 0.83, while jobs in higher-wage classes have a 0.31 to 0.04 chance of being automated. According to a 2013 report from Oxford, 50 percent of jobs could be replaced within the next 10 to 20 years — a claim supported by a McKinsey report that suggests the technology we have today could replace 45 percent of jobs right now.
If Altman is right, and this economic shift can be equated to the industrial revolution, this change will be an overwhelmingly positive phenomenon for future generations. In the meantime, we’ll face mass technological unemployment. This is why Altman is exploring the Universal Basic Income as a way of alleviating a problem that he, in part, helped to create.