Sam Altman, the CEO of OpenAI, has funded the largest basic income experiment in the United States to date through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a duration of three years. The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes of less than $30,000.
The experiment divided participants into two groups: one-third received monthly payments of $1,000, while the remaining participants were given $50 each month. According to the findings, those who received the larger payments were more empowered to seek jobs that matched their preferences and values.
The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” One participant expressed that the financial support allowed them to be selective in the job market, stating, “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”
Another participant spoke about the long-term benefits of the cash transfers. They explained how the support enabled them to start in a lower-paid position in a preferred field, which ultimately led to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they remarked.
Interestingly, the study revealed no significant differences in overall employment rates between the groups. However, those who received higher payments did tend to increase their spending on essential needs such as food, housing, and transportation. The funds also aided in covering health-related expenses, including treatments for alcoholism and dental braces. While the financial support initially alleviated stress, many of the health benefits diminished after two years.
Altman has been an advocate for universal basic income, especially as advancements in artificial intelligence are projected to reshape the job market and potentially displace certain employment opportunities.
This study represents a hopeful step toward understanding how financial support can impact those in poverty, providing them with greater flexibility and the ability to pursue roles that align with their aspirations. As the dialogue around universal basic income continues, this research may play a critical role in shaping future policies aimed at alleviating financial insecurity.