Sam Altman, the CEO of OpenAI, has financially backed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This initiative offers unconditional cash payments to individuals living under the poverty line for a period of three years, serving as a significant experiment in the realm of universal basic income.
The study included approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. Within this group, one-third received $1,000 each month, while the rest, serving as a control group, were given $50.
Findings from the study revealed that those receiving the larger payments experienced a greater sense of freedom in their job search, allowing them to pursue employment opportunities that aligned with their personal goals and values. The researchers noted that “cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were more likely to seek out jobs, but they did so with more discrimination than those in the control group.
One participant shared how the cash transfers enabled them to build savings, stating that they could afford to be choosy in their job selection, rather than settling for any available position just to make ends meet. Another recipient highlighted how the support allowed them to accept a lower-paying entry-level job in a desired field, which ultimately led to significant career advancement, achieving a six-figure salary within two years.
The study showed that while there were no notable differences in overall employment rates between the recipients and the control group, those who received higher payments primarily increased their expenditures on basic necessities, including food, housing, and transportation. The financial assistance also aided recipients in addressing health-related expenses, such as braces and alcoholism treatment. However, although the payments initially alleviated stress, many of the associated health benefits diminished after two years.
Sam Altman’s advocacy for universal basic income is grounded in the understanding that advancements in artificial intelligence may disrupt the labor market and lead to job displacement.
In conclusion, this study reflects a growing recognition of the potential benefits of universal basic income, particularly in an era of economic uncertainty and technological advancement. It offers hope for a future where financial support systems empower individuals to make better life and career choices. As similar studies continue to emerge, they may pave the way for broader policy discussions on income equality and social safety nets.