Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining individuals, forming the control group, received just $50.
Results from the study indicated that those who received the larger payments had greater flexibility in seeking employment that suited their preferences. The authors highlighted that access to cash could enhance an individual’s ability to pursue job opportunities that align with their personal goals and values. Notably, while recipients were more proactive in their job searches, they also tended to be more selective about the positions they pursued.
One participant shared, “Thanks to the cash transfer and the ability to save, I can afford to be picky.” This individual expressed that they no longer felt compelled to accept unsatisfactory jobs for immediate income, allowing them to seek a more suitable employment fit.
Another recipient noted that the financial support enabled them to accept a lower-paying entry-level position in a desired field, leading to a significant salary increase to six figures within two years. They stated, “Without the cash transfers, I couldn’t have made that pay cut.”
The study revealed that there was no significant difference in employment rates between those receiving the larger payments and those in the control group. Recipients primarily increased their spending on essential needs, with food, housing, and transportation being the largest expenses. The payments also aided in covering health-related costs, such as braces and addiction treatment. Although the initial cash transfers alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income as artificial intelligence continues to transform the workforce, potentially displacing certain jobs.