That is the key question.
Suppose someone is currently making 26,000 a year and in poverty. AIs he making bad choices? We don’t know, I just made him up. But we do wonder whether people will use the extra money, which technically is “extra” money and could be used for investment. Do they use the extra money and just get stoned? or do they start a business and get out of the bottom percentile? And if we learn who uses the “gift” wisely we can direct the safety net in more appropriate directions in the future.
I hope they get some useful data, my guess is that most people will get a little benefit but not make any major change in their lifestyle. So it will end up with a negative effect of not encouraging a work ethic and leaving the recipients in poverty. But I don’t know.
In my personal experience (observing others), many a person getting a windfall of $500 will go out and "celebrate" first - and end up spending not only the initial $500, but even more.
Regards,