Revolutionizing Cash: How Basic Income Changed Lives in the U.S.

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

The study involved 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom had incomes below $30,000 annually. A third of these individuals received $1,000 monthly, while the remaining participants, serving as a control group, received only $50.

The findings indicated that those who received the larger payments had greater flexibility in seeking employment that suited their preferences. The study’s authors noted that “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values,” remarking that recipients were more likely to look for jobs but were also more selective in their choices.

One participant reflected on their experience, saying, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” emphasizing the ability to avoid undesirable jobs due to financial security. Another recipient shared how they could take a lower-paid entry-level job in their desired field, which eventually led to a six-figure salary within two years, stating that without the cash transfers, such a pay cut would have been impossible.

Interestingly, the study found no significant employment rate differences between the larger payment recipients and the control group. Instead, recipients primarily increased spending on essential needs, including food, housing, and transportation. The payments also helped cover health-related expenses, such as braces and addiction treatment. Although initial stress reduction was noted, many health benefits appeared to diminish after two years.

Altman has been an advocate for universal basic income, particularly as advancements in artificial intelligence continue to transform the job market and affect employment opportunities.

Correction: An earlier version of this article inaccurately indicated that the study was conducted by OpenAI; it was actually conducted by Sam Altman’s nonprofit, OpenResearch.

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