Sam Altman, the CEO of OpenAI, has financed the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. This initiative aims to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.
The study involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all earning less than $30,000 annually. A third of these participants received $1,000 each month, while the remainder, serving as the control group, received only $50.
Findings from the study indicated that those receiving the larger payments had greater flexibility in job searching, allowing them to pursue employment opportunities that better matched their aspirations and preferences. The authors of the study emphasized that access to cash can empower individuals, enabling them to make employment choices that resonate with their personal situations and goals.
One participant noted that the cash transfers enabled them to save money, allowing them to be selective in their job search. They expressed relief in not having to settle for undesirable positions due to immediate financial needs. Another recipient shared how the assistance allowed them to accept a lower-paying job in a desired field, which eventually led to a six-figure salary within two years. They acknowledged that without the cash transfers, they wouldn’t have been able to make such a career move.
The study revealed no significant differences in overall employment rates between those who received larger payments and those who did not. Instead, recipients tended to spend the money primarily on essential needs such as food, housing, and transportation, with some using the funds for health-related expenses. Although the initial cash assistance helped reduce stress levels, many of the associated health benefits appeared to diminish after two years.
Sam Altman has been an advocate for universal basic income, especially in light of the job market shifts caused by advancements in artificial intelligence.