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  • Imagine paying people no-strings-attached cash whether they have a job or not.

  • There's the need for a new kind of safety net.

  • It's a utopian idea that some think could be the solution to a potentially jobless dystopian future.

  • This way of automation is coming and it hasn't crushed on society yet but it's going to.

  • In California, two experiments are being planned that could point to a radically different future of work.

  • Stockton, California.

  • Just five years ago, the city was declared bankrupt.

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  • Today, unemployment is almost double the national average and many people live paycheck to paycheck.

  • Hello, how are you?

  • Good to see you.

  • But the city's mayor, Michael Tubbs has a plan to combat an increasingly unequal and insecure jobs market.

  • Starting this year, a hundred residents will receive a guaranteed income of $500 per month.

  • Whether they work or not.

  • The mayor's plan is inspired by the radical idea of a Universal Basic Income, or UBI.

  • An unconditional cash payment for all citizens.

  • The experiment will measure the impact of these payments on the recipients' lives.

  • Mayor Tubbs believes it could be the key to helping the working poor.

  • Those who have jobs but find it hard to make ends meet.

  • If Universal Basic Income works out in Stockton you will see the poverty levels decrease.

  • I do think there'll be more discussions about things like social safety net and basic income, for sure.

  • The truth is, one in two of every American can't afford $1500 emergency.

  • Which means the majority of the country's not doing that well.

  • I'm the first to say that for three years worth of work, I ended up with nearly half a billion dollars.

  • That is not how the economy is supposed to work.

  • Chris Hughes is one of the people paying for Mayor Tubb's experiment.

  • He made his money as a co-founder of Facebook.

  • But the online revolution he's profited from could mean rising insecurity for the workers of tomorrow.

  • Now, he spends his time looking for new ways to deliver a fairer society.

  • We're seeing massive growth in the number of part-time jobs, contingent workers, in the gig economy, and with that instability comes a need for a new kind of safety net.

  • $500 a month in the background every single month for people who need it so that in the great months you know that you're gonna be good.

  • And in the months when work isn't quite as stable, you know you're at least halfway to making rent.

  • Skeptics argue no-strings-attached handouts could discourage people from working.

  • But Chris Hughes says research to date suggests that top ups have beneficial effects.

  • When people get modest amounts of cash, they use it to improve their lives and the lives of their family.

  • They invest it in themselves.

  • Most importantly, people don't drop out of work en masse.

  • Our generation is gonna have to deal with tens of millions of jobs replaced by automation like self-driving cars and trucks.

  • Silicon Valley seemed awash with billionaires eager to allay fears about an uncertain future of work.

  • Fears stoked by the very innovations that have made them their billions.

  • Universal Basic Income is one of these ideas that's been talked about and debated a lot.

  • So we thought it'd be really good, given what we think is gonna happen in the world if we could get some data.

  • Sam Altman is president of a Silicon Valley school for startups and he is about to launch the most rigorous experiment in basic income ever carried out in America.

  • 3,000 people will receive either $50 or $1,000 with no-strings-attached every month for the next few years.

  • Most economists argue a basic income would be just too expensive for governments to provide today.

  • But Sam Altman claims the rise of the robots could ultimately have an answer for that.

  • If the AI comes, the good news is the cost of goods and services come down dramatically because computers can do them so inexpensively.

  • In a world like that, you know, we'd see effected GDP growth in terms of purchasing power skyrocket.

  • In the world where the AI really does arrive, there'll be plenty of money.

  • Supporters of a basic income even believe it can change people's attitudes towards work itself.

  • We'll definitely have to redefine what we think of this work.

  • But we've had to do that many times before.

  • One of the things that we learned in Silicon Valley is just how much potential some people have.

  • And if you can unlock that, if you can free them from having to work a job that they hate just to be able to survive, we'll create hugely more value for the world.

Imagine paying people no-strings-attached cash whether they have a job or not.

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