EBay's Founder Invested $500,000 into an Experiment Giving Free Money

The founder of EBay, Pierre Omidyar invested $493,000 to the charity GiveDirectly in Kenya. It is an experiment that tests an upcoming solution for the poverty known as primary income. People who are getting basic income receive a set of the amount on a regular basis to cover their expenses like food, clothing and rent.

Pierre Omidyar started the Omidyar Network which is the philanthropic investment arm. The GiveDirectly charity is running a small service in just Kenyan villages at present. However, once the experiment launches in a few months, it will be the largest basic income research. Under this, more than 26,000 people will receive free money in some form whether for 12 years, or just a couple of months or it may extend the time.

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“Omidyar Network’s foundational belief that empowering people frees them to better themselves, their families, and their communities has great evidence in the growing discussion on the benefits of cash transfers,” manager Tracy Williams and partner Mike Kubzansky wrote in the blog post announcing about Omidyar’s investment.

According to the studies performed, it suggests that only good comes from helping the poor people in their financial needs. As per the research was done by the officials said that people’s stress goes down when the self-sufficiency goes up. By helping people, they can start business sent their kids to school and even make necessary home repairs on basic income.

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However, up to now, GiveDirectly raised $23.7 million of its targeted $30 million. Omidyar has expressed optimism that once it begins, it will produce many fruitful insights. A spokesperson from the GiveDirectly charity said, “unlike those of any past study and provide evidence-based arguments to shed light on the conversations around the future of work and poverty alleviation policies.”