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

Sam Altman, CEO of OpenAI, has financed the largest basic income study to date in the United States through his nonprofit organization, OpenResearch. The initiative involved offering unconditional cash payments to individuals living below the poverty line over a span of three years.

The study included 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 each month, while the remainder, serving as a control group, received just $50.

Findings from the study revealed that those who received the larger payments felt more empowered to seek jobs that aligned with their interests and aspirations. The authors of the study noted that cash assistance can enhance individuals’ ability to make employment choices that suit their unique situations and values. Recipients tended to be more selective in their job searches.

One participant shared, “Thanks to the cash transfer and being able to save, for the first time, I’m in a position to be picky,” emphasizing that they were not compelled to accept undesirable jobs. Another recipient recounted how they were able to take a lower-paying entry-level job in a field they were passionate about and subsequently reached a six-figure salary within two years, stating, “Without the cash transfers, I would not have been able to accept that pay cut.”

However, the study noted that there were no significant differences in employment rates between those who received the larger payments and the control group. The recipients primarily utilized the funds to cover essential living expenses, such as food, housing, and transportation. These payments also assisted with health-related expenses, including braces and treatment for addiction. While the financial support initially alleviated some stress, many of the associated health benefits diminished after two years.

Sam Altman has championed the concept of universal basic income, especially as advancements in artificial intelligence reshape the job market and potentially displace certain positions.

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