Sam Altman, CEO of OpenAI, has spearheaded the largest basic income study in the United States through his nonprofit organization, OpenResearch. This significant initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these individuals received $1,000 per month, while the remaining participants, serving as the control group, received $50.
Findings from the study indicated that recipients of the higher payments experienced greater freedom when seeking employment. According to the researchers, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Those receiving larger checks were notably more engaged in their job searches and tended to be more discerning in their choices.
Participants echoed these sentiments; one noted that the cash transfer allowed them to save money, meaning they no longer had to accept jobs that weren’t suitable. Another participant expressed that the financial support enabled them to take a lower-paying job in their desired field, which ultimately resulted in a significant salary increase within two years. They remarked, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
Interestingly, the study reported no significant difference in overall employment rates between the two groups. The majority of increased spending among recipients was directed towards essential needs like food, housing, and transportation, with some using the funds for health-related expenses like braces and addiction treatment. Although there were initial reductions in stress levels attributed to the financial assistance, many of these health benefits seemed to diminish after two years.
Sam Altman, who advocates for universal basic income, suggests that as artificial intelligence transforms the labor market, initiatives like this could play a critical role in providing financial security for individuals who may find themselves displaced from traditional jobs.
This study highlights the potential of basic income to offer individuals more freedom and choice in their employment decisions, which could lead to improved job satisfaction and better alignment with personal goals. In a rapidly changing economic landscape, initiatives such as these provide a glimmer of hope for those seeking stability and fulfillment in their careers.