Sam Altman, the CEO of OpenAI, has initiated the largest basic income study ever conducted in the United States through his nonprofit organization, OpenResearch. The study aimed to evaluate the effects of unconditional cash payments on individuals living below the poverty line.
Approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 annually, took part in the research. One-third of these participants received a monthly payment of $1,000, while the remaining participants were given a mere $50 to serve as a control group.
Findings from the study indicated that those receiving the larger cash payments had greater flexibility in job searching, allowing them to select positions more 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.” The recipients reported being more discerning in their job options.
One participant shared how the cash transfer enabled them to save money, saying, “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 noted that the support allowed them to accept a lower-paying job in their desired field, ultimately leading to a six-figure salary within two years, which they attributed to the financial cushion provided by the cash transfers.
While the study did not indicate a significant difference in overall employment rates between the two groups, the larger payments did help recipients meet their essential needs, contributing to expenses for food, housing, and transportation. Additionally, some participants were able to address health-related costs, such as braces and addiction treatment. However, the initial stress relief associated with the payments diminished after two years.
Sam Altman is a vocal supporter of universal basic income as a potential solution to the economic shifts brought on by AI technology, which is expected to transform the job market and displace certain roles.
This groundbreaking study underscores the potential benefits of financial support systems, particularly in empowering individuals to make better employment choices and invest in their future careers. The findings contribute to the growing discourse on how basic income could serve as a tool for combating poverty and promoting overall well-being amidst economic change.