Sam Altman, the CEO of OpenAI, has taken a significant step in addressing poverty through his nonprofit organization OpenResearch, which has conducted the largest basic income study in the United States to date. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line over a three-year period.
The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all earning less than $30,000 per year. One-third of these participants received monthly payments of $1,000, while the remaining participants, acting as a control group, received just $50 each month.
Findings from the study indicated that those receiving the larger payments enjoyed greater flexibility in job searches, allowing them to pursue opportunities that were better suited to their personal goals and values. The authors of the study emphasized that access to cash enhances individuals’ ability to make employment choices aligned with their circumstances.
One participant noted the positive impact of the cash transfer, stating, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky.” This sentiment was echoed by another recipient who shared their journey of starting in a lower-paid entry-level position that ultimately led to a six-figure salary within two years, crediting the cash transfers as a crucial means to taking that risk.
While the research showed no significant difference in overall employment rates between the two groups, it highlighted that recipients primarily increased their spending on essential needs such as food, housing, and transportation. Additionally, the payments provided support for health-related expenses, contributing to a temporary reduction in stress; however, the long-term physical and mental health benefits diminished after two years.
Altman’s advocacy for universal basic income aims to innovate solutions as the landscape of employment changes due to advancements in artificial intelligence. This approach embodies a progressive effort to alleviate poverty and empower individuals in their pursuit of meaningful work.
Overall, this study not only sheds light on the potential benefits of unconditional cash assistance but also raises important questions about employment and economic stability in the era of automation. As discussions about universal basic income continue, Altman’s endeavor may pave the way for broader social change and greater financial security for many.