It’s a straightforward thought, and, at first glance, it seems reasonable: replace Social Security with a universal basic income (UBI). It not only could help lower-income retirees live more comfortably in their later years and erase retirement fears, but also could lift lower-income Americans out of poverty for life.
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But would it work? GOBankingRates asked ChatGPT if universal basic income could replace Social Security, and here’s what it said.
First Thoughts From ChatGPT
When asked the straightforward question, with no background in the prompt, “Could universal basic income ever replace Social Security?” ChatGPT offered a simple, well-organized answer.
“That’s a big, fascinating question — and the short answer is: not easily, and not anytime soon,” it said.
However, it added, “UBI isn’t a miracle cure or a looming catastrophe — it’s a tool with real potential, if designed carefully and funded wisely.”
It went on to explain why.
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Social Security vs. UBI, According to ChatGPT
First, ChatGPT succinctly explained the differences between the programs. “Social Security is a targeted social insurance program, funded by payroll taxes, that provides retirement, disability and survivor benefits,” it said.
On the other hand, UBI is a universal cash transfer, where “everyone gets the same amount, regardless of income or work history.”
Replacing Social Security with UBI would require a paradigm shift. “Replacing Social Security with UBI would mean shifting from an earned benefit model to a universal entitlement, which is a huge philosophical and political leap,” ChatGPT said.
Expert Thoughts
Forbes writer Cornelia Walther, Ph.D., an AI researcher, explored how technology could assist in UBI distribution. Yet, she acknowledged in a recent article that UBI acceptance requires “a foundational human shift.”
“It requires a societal commitment to move beyond paradigms of scarcity and competition,” she wrote.
Will People Stop Working With UBI?
ChatGPT was then asked this question: “If there is a universal basic income, will people want to work less?”
ChatGPT responded that there have been many studies done with UBI pilots and similar programs, which largely showed that “most people don’t stop working, but some do adjust how they work.”
ChatGPT cited several real-world examples from Finland, Canada, California and Alaska, with the takeaway, “The evidence shows reductions are modest and often socially beneficial.”
Expert Thoughts
The world’s largest study to date, funded partially by Sam Altman, conducted by OpenResearch and reported by the National Bureau of Economic Research, contradicted previous findings. In the study, 1,000 low-income individuals received $1,000 per month for three years. A control group of 2,000 people received $50 per month.
The study found that labor market participation decreased by 2 percentage points and participants worked roughly 1.3 to 1.4 fewer hours per week. Partners of participants also reduced their work time similarly. Participants actually earned $1,500 less each year, after accounting for the UBI deposits. Unemployment lasted 1.1 months longer for those receiving the $1,000 monthly check, which seemed to contradict prior research.
Nevertheless, the bulk of research, as ChatGPT accurately cited, showed increases in life satisfaction and overall health.
The Costs
ChatGPT dug into the numbers to address the next challenge: costs and how to pay for UBI.
“Social Security is expensive already, but UBI would dwarf its cost,” it said. Citing figures from the Social Security Administration, it said that Social Security outlays for Supplemental Security Income and Social Security Disability Insurance would total roughly $1.5 trillion in 2025.
“Unless UBI replaced all major welfare programs, the U.S. would need massive new taxes or deficit spending,” ChatGPT said.
Expert Thoughts
Teddy Ganea, a writer at The Stanford Review, shared that it’s entirely possible to implement a UBI of $18,000 per year, at minimum, that could “end poverty overnight.” The program would phase out gradually for higher-income individuals.
Ganea explained that a UBI that provides roughly $9,000 on average in assistance to the 75% of Americans who made less than $75,000 in 2024 would cost less than the $2.5 trillion currently spent on programs like Medicaid and welfare. The cost would even leave enough to “bolster underfunded programs like Social Security or education,” Ganea wrote.
Bottom Line
In the ultimate irony, just as ChatGPT shared reasons UBI is impractical, Ganea pointed to the same generative AI as a catalyst for UBI. “Maybe ChatGPT’s greatest achievement won’t be in automating coding or customer service,” Ganea wrote. “Perhaps it will be that, in stoking fears of automation, it paved the way for UBI.”
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT If Universal Basic Income Could Replace Social Security: Here’s What It Said
