Sam Altman, CEO of OpenAI, has spearheaded the largest basic income trial in the United States, funded through his nonprofit organization, OpenResearch. This groundbreaking study provided unconditional cash payments to individuals living below the poverty line over a span of three years.
The study involved 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. Of these individuals, one-third received $1,000 per month, while the remaining participants, who formed the control group, were allocated $50 monthly.
Findings revealed that those receiving the more substantial payments enjoyed greater flexibility in their job searches, which enabled them to pursue opportunities that better aligned with their personal goals and values. The authors of the study stated, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” The recipients were reported to be more selective when searching for employment.
One participant expressed that the cash transfers allowed them to save and be more discerning, stating, “I don’t have to take a crappy job just because I need income right now.” Another participant shared that they accepted a lower-paying entry-level position in a desired field, which ultimately led to a six-figure salary within two years. They acknowledged that without the cash support, they would not have been able to take such a risk.
The study did not indicate significant differences in overall employment levels between those receiving larger payments and those in the control group. Recipients mostly increased their spending on basic necessities such as food, housing, and transportation. The payments also allowed for expenditures on health-related needs, including dental braces and treatments for conditions such as alcoholism. Although the financial support initially reduced stress levels, many health benefits diminished after two years.
Altman’s advocacy for universal basic income is particularly relevant as advances in artificial intelligence and automation continue to reshape the job market, potentially displacing numerous jobs.
This study highlights the potential advantages of unconditional cash transfers, suggesting that they could create pathways for individuals to secure jobs that fit their aspirations while alleviating immediate financial pressures. It exemplifies how financial support can empower people, enabling them to pursue fulfilling careers rather than settling for jobs out of necessity. Overall, the research contributes to the understanding of basic income as a possible solution in an evolving economic landscape.