Sam Altman, the CEO of OpenAI, has initiated the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. This significant study aims to explore the impacts of unconditional cash payments on individuals living below the poverty line. Over a three-year period, the study involved 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually.
Among the participants, one-third received monthly payments of $1,000, while the remaining participants were given $50 to compare the effects. The findings revealed that those receiving higher payments had greater flexibility to seek jobs that suited their personal aspirations rather than needing to accept any available work.
The authors of the study highlighted the increased agency that cash transfers provided individuals, allowing them to pursue job opportunities that aligned with their goals and values. One participant recounted feeling empowered to be selective in their job search, noting that the cash assistance enabled them to avoid unfulfilling low-wage jobs. Another recipient mentioned how the financial support allowed them to take a lower-paying entry-level job in their desired field, which eventually led to a lucrative six-figure salary within two years. They admitted that without the cash transfers, accepting that pay cut would not have been feasible.
While the study did not show a significant difference in employment levels between cash recipients and the control group, it found that cash assistance helped participants cover essential expenses such as food, housing, and transportation. Additionally, recipients were able to address health needs like dental work and treatment for alcoholism, demonstrating the broader social benefits of economic support. However, it was noted that the positive effects on mental health began to diminish after two years.
Altman has been a vocal advocate for universal basic income (UBI), particularly as advancements in artificial intelligence continue to transform the job market and displace certain roles. This study sheds light on the potential of UBI to empower individuals and improve their quality of life, offering hope for a future where people can pursue meaningful work without the constraints of financial insecurity.
In summary, Sam Altman’s basic income study illustrates how financial support can not only alleviate poverty but also encourage individuals to seek fulfilling employment opportunities, paving the way towards a more empowered workforce.