Sam Altman, the CEO of OpenAI, has initiated the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. This groundbreaking study provided unconditional cash payments to individuals living below the poverty line for a duration of three years, involving approximately 3,000 participants aged 21 to 40 from Texas and Illinois, who had annual incomes under $30,000.
The experiment divided participants into two groups: one-third received monthly payments of $1,000, while the rest, serving as the control group, received $50. Findings from the study indicated that those who received the larger payments found greater flexibility in their job searches. They were more inclined to pursue positions that aligned with their personal values and goals, suggesting that financial support can enhance individuals’ ability to make thoughtful employment choices.
One participant remarked that the cash transfer allowed them to save, enabling them to be selective in job applications instead of settling for unsatisfactory work merely for immediate income. Another participant shared how the financial assistance allowed them to accept a lower-paying entry level job in their desired field, leading to significant career advancement and a six-figure salary within two years. They noted that without the cash transfers, such a career move would not have been feasible.
The study did not reveal significant differences in overall employment levels between the recipients and the control group. However, the recipients allocated their funds primarily toward essential needs like food, housing, and transportation, also addressing health-related expenses such as dental braces and treatment for alcoholism. While initial stress levels decreased due to the financial support, many of the health benefits diminished over time.
Altman advocates for universal basic income, particularly as AI continues to transform the labor market and displace certain jobs. This research underscores the potential for basic income models to empower individuals facing economic hardships.
In summary, this study represents a significant step toward understanding how cash transfers can impact job selection and financial stability. By allowing individuals to prioritize their career aspirations over mere survival, it showcases the potential of universal basic income to transform lives. This forward-thinking initiative by Sam Altman and OpenResearch may pave the way for innovative solutions to address poverty as societal structures evolve.