Silicon Valley Promotes Cash Aid, Fearing AI job Threat 

Silicon Valley entrepreneurs have deeply considered the increased adoption of AI as an issue and proposed a potential solution: government-provided financial aid, often termed as basic income. 

Sam Altman’s Experiment on Basic Income 

Sam Altman, the CEO of OpenAI and the creator of ChatGPT, funded a macroeconomic study on basic income. Altman proposed in the future national payments would be important as technology progresses, potentially eradicating jobs but creating fortunes for others. In 2016, the AI entrepreneur said, “Do people, without the fear of not being able to eat, accomplish far more and benefit society far more?” 

Rhodes observed that needs varied from buying a cosmetology license to handling car crashes among participants. What was discovered is that most of them used extra money on things like food, rent or transportation. 

“We see an increase in people actually paying for housing,” Rhodes said, “apart from this some saved money while others were helping their family members or friends. 

Altman ran his investigation using 1000 lower-income individuals from Illinois and Texas who were given $1000 per month for three years. The control group consisted of 2000 people who received $50 monthly. Elizabeth Rhodes ran her research monitoring those changes concerning their finances after three years. 

COVID-19’s Effects 

This study was affected by COVID-19 that hit early during the survey and complicated it, though with some insights into what went on in an era of high unemployment. Karina Dotson, the research and insights manager at OpenResearch, emphasized that this cash gave people more control over their employment choices in these turbulent times. 

According to the study, those who were given cash payments worked slightly less, which led to a weekly average reduction of 1.3 hours in terms of working time. Some participants took up low-paying jobs with better long-term prospects. She highlighted one case about a single father who reduced his work time to be around his son. 

Entrepreneurship Merged with Stress Levels 

Entrepreneurial interest increased, especially among black participants, but significant steps towards starting businesses only occurred in the third year. Initially, many participants reported reduced stress and food insecurity, but these benefits lessened after the first year. 

Upon purchasing new cars some encountered unexpected expenses such as vehicle repairs. In addition to determining how participant relocations affect children’s educational outcomes, OpenResearch has planned further analysis of this nature. 

Critics and advocates and Silicon Valley entrepreneurs support the concept of basic income. Hughes, who supports the idea of guaranteed income, affirms that it is not enough but additional financial assistance can keep households intact. On the other hand, Strain, an economist at American Enterprise Institute, suggests that instead of this strategy, credits for low earning workers should be increased. 

AI as an Aid Instead a Threat 

While many are worried about AI posing a bigger threat to jobs worldwide, Altman, along with others should be working towards having AI being more of a friend than a foe. AI should be seen as an aid to human activity without substituting jobs. The debate on what to do about struggling families while technological advances has been ongoing and during these times this should not be the case whatsoever. This time should be the time to make the economic situation better with the aid of tech to create more opportunities than what we have. It’s time to quit being left without a job and use technology to look for better opportunities. 

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