Facebook co-founder Hughes: Basic income of $500 per month needed

CNBC

Chris Hughes, who made a fortune as a co-founder of Facebook, told CNBC on Tuesday American workers who make less than $50,000 per year should get a government stipend of $500 per month — paid for by raising taxes on the wealthy 1 percent.

Such a plan is necessary because of the growing digital economy, said Hughes, author of "Fair Shot: Rethinking Inequality and How We Earn" and an advocate for a basic income. "I don't have a crystal ball on exactly where technology is headed. But I do think that it's going to continue to destroy work."

Facebook co-founder's proposal to rethink inequality  8:44 AM ET Tue, 20 Feb 2018 | 07:57

Chris Hughes, who made a fortune as a co-founder of Facebook, told CNBC on Tuesday American workers who make less than $50,000 per year should get a government stipend of $500 per month — paid for by raising taxes on the wealthy 1 percent.

Such a plan is necessary because of the growing digital economy, said Hughes, author of "Fair Shot: Rethinking Inequality and How We Earn" and an advocate for a basic income. "I don't have a crystal ball on exactly where technology is headed. But I do think that it's going to continue to destroy work."

"So we talk a lot about Uber drivers, Lyft drivers, Postmates, the 'gig economy,' that is up and to the right" in terms of expansion, he said in a "Squawk Box" interview. But for the workers in these "alternative work arrangements," their incomes are "deeply unstable," he said.

The labor market has been squeezed by decades of jobs going overseas — and the void is often being filled by automation, said Hughes. "The future is already here. Work is already changing in America."

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