Altman’s Bold Move: Can Universal Basic Income Transform Lives?

Sam Altman, CEO of OpenAI, has backed the largest basic income study in the U.S. to date through his nonprofit organization, OpenResearch. This initiative aimed to provide unconditional cash payments to individuals living below the poverty line for three years.

The study included around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes of less than $30,000. One-third of these participants received $1,000 monthly, while the others—serving as a control group—received $50.

Results indicated that those receiving the larger payments experienced greater flexibility in job searching, allowing them to pursue employment that matched their personal aspirations and circumstances. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”

One participant mentioned, “Thanks to the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” emphasizing that they were no longer forced to settle for unsatisfactory jobs due to immediate financial needs. Another recipient shared that they accepted a lower-paying entry-level position in a desired field, ultimately leading to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”

The study did not reveal significant differences in overall employment rates between the larger payment recipients and the control group. Recipients primarily used the funds for essential needs such as food, housing, and transportation, and also addressed health issues like braces and alcoholism treatment. Initial stress relief associated with the payments diminished over time, with many health benefits fading after two years.

Altman has been a vocal advocate for universal basic income, especially as advancements in artificial intelligence influence the labor market and displace certain jobs.

Correction: A previous version inaccurately identified the organization conducting the study; it was Sam Altman’s nonprofit, OpenResearch, not OpenAI.

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