Large sections of the brain that could contain useful knowledge are instead filled with random tweets, like one from a person calling themselves “Side Hustle King.” This person posed a question to his followers: would they rather receive $1 million immediately or $50 every month for the rest of their lives? He argued that Option B, the monthly payments, is passive income. However, this reasoning is flawed as it would take 1,667 years to accumulate $1 million with $50 monthly payments. This case demonstrates that sometimes it’s better to take a lump sum instead of regular payments. GiveDirectly, a charitable organization, is conducting a large-scale test of basic income in rural Kenya, providing approximately $20 a month to 6,000 people until 2028. They are exploring how to best direct cash to low-income households. The latest research conducted by MIT economists Tavneet Suri and Nobel Prize winner Abhijit Banerjee compared three groups: short-term basic income recipients, long-term basic income recipients, and lump sum recipients. The study found that, financially, the lump sum group performed better in terms of income, starting businesses, and spending on education. They had a doubling of net revenues compared to the monthly
https://www.vox.com/future-perfect/2023/12/1/23981194/givedirectly-basic-income-experiment-abhijit-banerjee-tavneet-suri