Altman’s Bold Experiment: Can Cash Payments Transform Lives?

Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative aims to provide unconditional cash payments to individuals living below the poverty line for a period of three years.

The study involved 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of these participants received $1,000 per month, while the control group was provided with just $50.

Findings from the research indicated that those receiving the larger payments experienced greater flexibility in pursuing jobs that aligned with their preferences. The study’s authors noted that increased cash flow can enhance individuals’ ability to make employment choices that resonate with their personal goals and values. Recipients were more likely to be job-hunting but tended to be more selective in their choices.

One participant shared how the cash transfers allowed them to accumulate savings, saying, “I’m in a position for once to be picky. I don’t have to take a crappy job just because I need income right now.” Another recipient discussed how the financial support enabled them to accept a lower-paying entry-level position in their desired field, ultimately leading to a lucrative six-figure salary within two years, something they deemed impossible without the cash transfers.

While the study showed no significant differences in overall employment levels between those receiving the larger payments and the control group, it noted that recipients tended to increase spending on essential needs like food, housing, and transportation. The payments also helped cover health-related expenses such as braces and treatment for alcoholism. Although the initial cash transfers reduced stress among recipients, many of the health benefits diminished after two years.

Altman has been a staunch advocate for universal basic income, especially as advancements in artificial intelligence threaten to disrupt traditional job markets.

Correction: An earlier version of this article incorrectly identified the group conducting the study as OpenAI; it was Sam Altman’s nonprofit OpenResearch.

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