- A Japanese billionaire, Yusaku Maezawa, is offering to give 1,000 Twitter followers 1 million yen, or $US9,000, each.
- Maezawa is expected to fly on SpaceX’s first moon voyage in 2023.
- His offer is meant to test whether a basic-income payment could boost people’s happiness. Research suggests it might.
- Visit Business Insider’s homepage for more stories.
A Japanese billionaire, Yusaku Maezawa, has found some lavish ways to spend his money – he spent $US57 million on a Basquiat painting and has reserved every seat on SpaceX’s first flight around the moon. Now he has promised to give 1,000 of his Twitter followers 1 million yen, or $US9,000, each.
Maezawa, who made his fortune in fashion, announced on Sunday that he would select the recipients at random from a group of followers who retweeted a post of his on January 1.
He said he viewed the offer as a “serious social experiment” to see whether free money can boost people’s happiness.
The giveaway, Maezawa added, is driven by a curiosity about universal basic income, a system that essentially pays someone simply for being alive. The concept has been touted by Andrew Yang, the Democratic presidential candidate who has vowed to give $US1,000 a month to every US citizen over 18 if he is elected.
Maezawa said he would track the results of his experiment through regular surveys of the recipients.
The payments aren’t exactly basic income
Maezawa last year offered to distribute 100 million yen ($US917,000) among 100 of his followers. According to The Asahi Shimbun, Maezawa coordinated with the winners via direct message on Twitter.
Two months ago, Maezawa sold his online fashion business, Zozo, to SoftBank for $US900 million.
But his latest offer doesn’t really qualify as a basic income, since the recipients get a one-time payment instead of a consistent stipend.
“Basic means a regular minimum amount offering a sense of security,” Toshihiro Nagahama, a senior economist at the Dai-ichi Life Research Institute, told Reuters. “What Maezawa is offering is totally different.”
Still, Maezawa’s offer doesn’t come with any strings attached or stipulate eligibility requirements – winners don’t have to earn below a certain income, for example. In that sense, the payments resemble a basic income more than certain government-backed welfare initiatives.
An ongoing basic-income trial in Stockton, California, by contrast, gives $US500 per month to 125 residents, but people must reside in a neighbourhood where the median household income is the same as or lower than the city’s overall – $US46,033 – in order to qualify for the program.
Yang’s basic-income proposal, meanwhile, would replace some Americans’ monthly stipends and existing welfare benefits. (Retirement benefits like Social Security would be preserved, though, and veterans and differently-abled citizens would continue to receive their current benefits alongside a basic income.)
Other basic-income experiments, such as a trial in Finland conducted from January 2017 to December 2018, have also required participants to forgo certain benefits to receive the money. In Finland’s case, participants had to give up part of their standard conditional benefits – things like housing allowances and illness compensation – to receive payments of €560 a month. They also had to be unemployed.
By the end of the experiment, many of the participants remained jobless.
Can basic income improve happiness?
Though Finland’s trial was widely considered a flop, it yielded some interesting results about the relationship between basic income and well-being.
On average, the participants reported that they were happier and healthier overall than other unemployed residents. It’s worth noting, however, that the participants’ response rate to a government survey was extremely low – about 25%, on average – which gives it an unacceptable level of uncertainty, according to standards set by the US Department of Education.
But other basic-income experiments have found similar results.
In the 1970s, Canada guaranteed a minimum annual income to families in the city of Winnipeg in rural Manitoba. Decades later, a University of Manitoba professor, Evelyn Forget, analysed the results and found that recipients made fewer visits to doctors for mental-health issues and were less likely to be hospitalized for these issues than the control group, which didn’t receive the minimum annual income.
As to Maezawa’s question about whether money can buy happiness more generally, a 2010 Gallup poll explored the subject through a daily survey of 1,000 US residents. The survey found that having a low income exacerbated emotional pain during negative life events like divorce or illness. Americans with high incomes, by contrast, tended to be more satisfied with their lives.
The survey also found that money did lead to happiness – up to a certain point. Americans earning more than $US75,000 did not report being happier than those who earned that amount.
Some basic-income recipients reported being less stressed
At the very least, many basic-income trials have found reductions in participants’ stress about finances.
“The funny thing about basic income is that it has to be one of the most tested welfare policies in history that hasn’t in fact been implemented,” Michael Stynes, the CEO of the nonprofit Jain Family Institute, told Business Insider.
Stynes is working with the Brazilian city of Marica to study the effects of its new basic-income program, which gives $US33 monthly stipends to about one-third of the city’s residents, or 52,000 people. He hopes the program will encourage participants to join the labour market.
Critics of basic income argue that regular payments can reduce the incentive for people to find jobs. But the idea’s proponents argue that people who receive a stipend to cover basic needs are more inclined to pursue work that interests them, as opposed to a menial job.
Stynes said he also expected that participants in the Marica program would invest the money in their homes and businesses over time.
Early results from Stockton’s trial, meanwhile, have found that participants spend most of their stipends on food and other basic necessities.
The money is “allowing people to breathe again,” Stockton’s 29-year old mayor, Michael Tubbs, told Business Insider.
One participant in the program, Virginia, 61, who declined to give her last name for privacy reasons, told Business Insider that the payments had eased her stress about buying everyday necessities. She recently used some of the money to make Christmas dinner for her family and members of her local Bible college. She’s also using it to go visit her older sister, who is ill, in Oregon.
“I appreciate the program a whole, whole, whole lot,” Virginia said. “I’m going to see a loved one who I don’t know how much longer I’m going to have. It was hard for me to do that before this money came.”
Maezawa said his payments were meant to inspire more debate about basic income in Japan.
“I think what everyone wants is not money, but fulfilling dreams,” he tweeted last year.
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