Cash for Choices: Can Basic Income Change Lives?

Sam Altman, the CEO of OpenAI, has financed the largest basic income study ever conducted in the United States. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a three-year period.

The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of the participants received $1,000 each month, while the remaining participants, who served as a control group, received just $50.

Results indicated that those receiving the larger payments had greater freedom to seek employment opportunities that aligned with their personal preferences. The study’s authors noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” While recipients were more likely to pursue job opportunities, they approached their job searches with increased selectivity.

In a personal account, one study participant explained that the financial assistance allowed them to accumulate savings and be more discerning in their job search, stating, “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.” Another participant shared that they accepted a lower-paid entry-level position in a desired field and, within two years, reached a six-figure salary. They attributed their ability to make this choice to the financial support provided by the cash transfers.

The research indicated no significant difference in employment rates between those who received the larger payments and the control group. Recipients primarily increased their spending on essential needs like food, housing, and transportation. The payments also assisted recipients with health-related expenses such as braces and treatment for alcoholism. Although the initial cash support reduced stress levels, many of the health benefits diminished after two years.

Altman has been an advocate for universal basic income, especially as artificial intelligence continues to reshape the job market and displace certain roles.

Correction: An earlier version of this article inaccurately identified the group that conducted the study. It was Sam Altman’s nonprofit OpenResearch, not OpenAI.

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