Cash for Freedom: Can Universal Basic Income Transform Lives?

Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The study aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.

Approximately 3,000 participants aged 21 to 40 from Texas and Illinois were involved, each earning less than $30,000 annually. One-third of the participants received $1,000 per month, while the remaining participants, who served as a control group, received $50.

The results of the study indicated that those receiving the higher payments had greater freedom in pursuing jobs that aligned with their personal preferences. According to the researchers, “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 stated, “Thanks to the cash transfer and my ability to save, I can finally be picky,” emphasizing that they were not compelled to accept a low-quality job out of immediate necessity. Another recipient shared their experience of taking a lower-paid position in a field of interest, which eventually led to a six-figure salary in just two years. “Without the cash transfers, I wouldn’t have been able to take that pay cut,” they acknowledged.

The study did not show significant differences in employment rates between those who received the larger payments and the control group. The recipients primarily increased their spending on essential needs such as food, housing, and transportation. The payments also helped cover health-related expenses like braces and treatment for alcoholism. Although recipients initially experienced reduced stress levels, many of the health benefits diminished after two years.

Sam Altman has voiced his support for universal basic income, particularly as advancements in artificial intelligence continue to change the job landscape.

A correction was issued to clarify that the study was conducted by Sam Altman’s nonprofit organization, OpenResearch, rather than OpenAI.

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