Sam Altman, the CEO of OpenAI, has made a significant contribution to poverty alleviation by funding the largest universal basic income study in the United States to date. The research, conducted by Altman’s nonprofit organization, OpenResearch, explored the effects of unconditional cash payments on individuals living below the poverty line across Texas and Illinois.
The study involved 3,000 participants aged 21 to 40, all earning less than $30,000 annually. Of these participants, one-third received $1,000 per month, while the remainder received only $50, serving as a control group. The findings revealed that those who received the larger payments enjoyed greater flexibility in their job searches, allowing them to pursue employment opportunities that better aligned with their personal goals and values.
Study authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” One participant reflected on how the cash assistance enabled them to be selective about job opportunities, stating, “I don’t have to take a crappy job just because I need income right now.”
Another success story from the study highlighted a participant who accepted a lower-paying entry-level position in their desired field, ultimately leading them to a six-figure salary within two years. They credited the cash transfers with providing the financial cushion necessary to take that initial pay cut.
While the study found no significant difference in overall employment levels between the recipient and control groups, it did show that the recipients primarily increased their spending on basic necessities such as food, housing, and transportation. The payments also played a crucial role in addressing health needs, covering expenses for treatments like braces and recovery from alcoholism. However, researchers noted that while the initial stress relief the payments provided was significant, many of the health benefits diminished after a two-year period.
Sam Altman has been a strong advocate for universal basic income, particularly as the rise of automation and artificial intelligence continues to reshape the labor market. This study contributes to a growing dialogue on how unconditional cash assistance could support those in need during times of economic transition.
In summary, this initiative by Altman not only demonstrates the potential of universal basic income to empower individuals but also serves as a case study in how financial security can impact employment decisions positively. The study offers hope that with thoughtful implementation, money can indeed provide individuals with the agency required to forge a better future.