Sam Altman, the CEO of OpenAI, has undertaken the largest basic income experiment to date in the United States, funding it through his nonprofit organization, OpenResearch. This study provided unconditional cash payments to individuals living below the poverty line for a span of three years.
Around 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, took part in the study. One-third of them received $1,000 per month, while the rest, serving as the control group, received $50.
Findings from the study revealed that those who received the larger payments were more empowered to seek employment in line with their personal goals and circumstances. The authors noted that cash assistance fostered greater agency for recipients, resulting in a more selective job search.
One participant expressed, “Thanks to the cash transfer and the ability to save, I can afford to be choosy about jobs,” explaining that the financial support allowed them to avoid unsatisfactory employment and seek a better fit.
Another recipient highlighted their journey from accepting a lower-paying entry-level job in a desired industry to eventually achieving a six-figure salary within two years, crediting the cash transfers for making that initial pay cut possible.
The study indicated that there was no significant difference in employment rates between the recipients and the control group, with most of the increased spending directed towards essential needs such as food, housing, and transportation. Additionally, the funds helped cover health-related expenses like braces and treatments for alcoholism. Although the financial support initially lessened stress, many of the health benefits diminished over a two-year period.
Sam Altman advocates for universal basic income, particularly as advancements in artificial intelligence reshape the job market and lead to job displacement.
A correction has been made to clarify that the study was conducted by Sam Altman’s nonprofit, OpenResearch, rather than OpenAI.