Sam Altman, the CEO of OpenAI, has funded the largest basic income study ever conducted in the United States through his nonprofit organization, OpenResearch. This groundbreaking project aimed to provide unconditional cash payments to individuals living below the poverty line for three years. The study involved around 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had annual incomes below $30,000.
Participants in the study were divided into two groups: one-third received $1,000 per month, while the remaining participants were given only $50. The results indicated that those receiving the larger payments had greater flexibility in their job searches, allowing them to seek positions that aligned with their personal values and aspirations.
The study’s authors highlighted that cash payments enhanced individuals’ ability to make informed employment decisions. One participant noted the life-changing impact of the cash transfers, sharing, “I can finally be picky,” which reflects the newfound financial stability that allowed them to avoid undesirable job options. Another recipient described how the cash support enabled them to accept a lower-paying entry-level position in a field they were passionate about, eventually leading to a lucrative six-figure salary within two years.
While the study did not show a significant difference in overall employment rates between the larger payment recipients and the control group, it did reveal that the additional funds were primarily spent on essential needs, such as food, housing, and transportation. Additionally, the payments contributed to addressing health needs, including dental treatment and support for addiction. However, the positive health effects were not sustained beyond two years.
Altman has championed the concept of universal basic income in light of how AI technology is reshaping job landscapes and potentially displacing workers.
This study illustrates the potential benefits of direct cash transfers in enhancing individuals’ job search flexibility and quality of life, highlighting a promising avenue for supporting the economically vulnerable as society navigates the complexities of a changing labor market. As discussions around universal basic income continue, this research could pave the way for future policy initiatives aimed at improving financial stability for low-income individuals.