Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. This significant initiative aimed to provide individuals living below the poverty line with unconditional cash payments over a three-year period. The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom were earning less than $30,000 annually.
Participants were divided into two groups: one-third received $1,000 per month, while the remaining individuals, serving as the control group, received only $50. The findings suggested that those receiving the larger payments experienced increased freedom in choosing jobs that aligned with their personal goals and values.
According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients tended to be more selective in their job searches. One participant expressed how the cash transfers allowed them to build savings and be more discerning in their job pursuits, stating, “I don’t have to take a crappy job just because I need income right now.” Another recipient shared their experience of taking a lower-paying entry-level position in a desired field, which eventually led to a six-figure salary within two years, emphasizing that without the cash transfers, such a pay cut would have been unfeasible.
The study also revealed that while there were no significant differences in employment rates between the recipients and the control group, the larger payments did result in increased spending on essential needs such as food, housing, and transportation. Additionally, recipients used the funds for important health-related expenses, including treatments for braces and alcoholism. However, while the payments initially relieved stress, many of the health benefits seemed to diminish after two years.
Sam Altman has been a strong advocate for universal basic income, particularly as artificial intelligence continues to reshape the job market and potentially displace workers.
This study not only highlights the potential benefits of direct cash payments in enabling individuals to make empowered employment choices but also underscores the importance of financial support in achieving long-term career aspirations. It serves as a hopeful glimpse into how similar interventions could positively impact lives and pave the way for a more adaptable workforce in the future.