Sam Altman, CEO of OpenAI, has financed the most extensive basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for three years.
Berkshire Hathaway holds $234.6 billion in U.S. Treasury bills, surpassing the Federal Reserve’s holdings.
The study involved 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually. One-third of these participants received $1,000 per month, while the remaining participants, serving as a control group, were given $50.
Results indicated that those receiving the larger payments enjoyed greater flexibility in pursuing jobs that aligned with their preferences.
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 were more likely to be searching for a job, but they were more selective.”
One participant mentioned, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” adding, “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 shared that they accepted a lower-paid entry-level position in their desired field and, after two years, reached a six-figure salary. “If I didn’t have the cash transfers there is no way I could have taken that pay cut,” they stated.
The study observed no significant difference in employment rates between recipients and the control group. Recipients mainly increased their spending on essential needs such as food, housing, and transportation, and the payments also helped cover health-related expenses. Although the payments initially alleviated stress, many health benefits diminished after two years.
Sam Altman advocates for universal basic income as artificial intelligence reshapes the job market and displaces certain employment opportunities.
Correction: An earlier version of this article mistakenly identified the organization conducting the study, which was Sam Altman’s nonprofit OpenResearch, not OpenAI.