One aspect that I've not heard discussed is the likelihood that a portion of those being granted a basic income will be exploited for their new-found cash. Has this been considered at YC and if so, what are their approaches to minimizing it?
Today "lowest tier housing" is purchased by the poor/poorest class. Suddenly the poor (and everybody, for that matter) have more money, however the amount of housing remains the same (though I guess some new development could be spurred, but you get the drift).
Really the YC experiment won't be able to even touch this aspect. It also won't be able to really touch on the long term effects it would have on participants. Initially will people be like "yea! let's get more education!" but then after 10 or 20 years, it just becomes common place, people stop thinking of it as "extra money for growth" but as "just normal monthly spending money" (like they consider food stamps today or what not) what happens then, I wonder...do they just live in slightly nicer apartments, or use it for education? It will be an interesting experiment for sure...
All I know is the people who live next to me really wish they could afford cable TV. And trips to disneyland. This would make their dreams come true...(there's a reason they're currently poor, believe it or not, it's something like cultural background and current cultural peer group, and kind of their understanding of how the world works). Extra money might not help that particular group. Though it would take the stress/pressure off, certainly. Or maybe it would, I don't know. So in essence, it might "magnify" peoples' current propensities. Do they want to not work? Don't! Do they want to invest? You can invest more quickly (though the reality, like I said before, is people tend to just "spend up" to what they think they can afford, get nicer cars, etc. again if this experiment is "only 5 years" they may not see this). It also makes me wonder if employers will offer "less" since they know "well, you already make 10K so I guess we don't have to offer you as much..." :|
However, if I receives this money of course I would do magnanimous things with it, like...investing it in real estate. Especially since poor people have more money to pay landlords. I wouldn't feel bad about jacking the rents on them now that I know they can afford it :)
So the reality is that people who now "wish" they could go to college will be able to (huge win, BTW). And those happy with not working? Well, they won't have to (or do they already not?) Got a cruddy job you wish you could quit? You will be able to (so maybe wages for worse jobs will increase?) The question mark is what will happen after that. Will people who quit their "tedious job" start up a new business out of sheer boredom/sheer freedom? Or will they just not work?