Cash for Choices: Can Basic Income Transform Lives?

Sam Altman, the CEO of OpenAI, has funded the largest basic income study conducted in the United States to date through his nonprofit organization, OpenResearch. The initiative provided unconditional cash payments to individuals living below the poverty line for a duration of three years.

Approximately 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 these individuals received $1,000 per month, while the remainder received $50.

The findings indicated that those receiving the larger sums enjoyed greater flexibility in pursuing jobs that better matched their interests. The study’s authors noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”

One participant shared their experience, stating, “Because of the cash transfer and being able to build up my savings, I’m in a position for once to be picky,” and added, “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 recipient recounted how the cash assistance enabled them to accept a lower-paid entry-level position in their desired field, ultimately leading them to a six-figure salary within two years. They noted, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”

The research found no significant difference in employment rates between those who received the larger payments and the control group. Recipients primarily used the funds to cover essential expenses, with food, housing, and transportation being the most significant. The payments also allowed some recipients to address health-related expenses, such as braces and treatment for alcoholism. While the initial cash transfers reduced stress, many health benefits diminished after two years.

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

Note: This article has been corrected to reflect that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.

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