Public interest in basic income has skyrocketed as many have realised that current social spending fails to adequately meet people’s needs and prepare them for rapid changes in the labour market. Despite the buzz, no researchers have taken on the challenge of exploring what a basic income really means for individuals in the US.

Y Combinator Research (YCR) is a non-profit research organisation established to explore big ideas to address longterm, societal-level problems. YCR announced its intention to conduct a basic income study in January 2016 and has since hired researchers and partnered with academics at Stanford and the University of Michigan. YCR is uniquely positioned to bring together leading researchers and leverage the technical expertise, ingenuity, and operational strengths of Silicon Valley. This project is the first step toward defining a new social contract for the 21st century.

Motivation

In the US, extreme poverty has dramatically increased, the middle class is shrinking, and employment and incomes have become more volatile and unpredictable. The technological and economic forces that contribute to these trends are unlikely to subside, and existing social programmes have proven insufficient to stem them.

For the poor, the need to make ends meet today, tomorrow, and next month means they can’t embrace opportunities that lead to long-term economic security. They don’t have the freedom to make investments in education or training, take risks that those with financial or family support often take for granted, or decide how to use public assistance to meet their specific needs.

The patchwork of programmes comprising the safety net is complex, difficult to navigate, and costly to administer. Expenditures on these programmes continue to increase but millions of Americans remain in poverty. Proposals to improve these programmes only tinker around the edges, acting as band-aids rather than sustainable solutions. YCR aims to explore an alternative approach that empowers individuals to realise their potential. Basic income could change the trajectory of people’s lives. It could provide a safety net for young adults as they transition from school to work, enable individuals to change careers or start a new business, or allow them to care for a child or elderly relative.

Basic income could also relieve poverty.