Sam Altman’s Bold Basic Income Experiment: Can Cash Change Lives?

Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date. His nonprofit organization, OpenResearch, collaborated with researchers to provide unconditional cash payments to individuals living below the poverty line for a duration of three years.

The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 per year. One-third of these participants received $1,000 each month, while others in the control group were given $50.

Findings from the research indicated that those who received the larger payments had greater flexibility in pursuing jobs that suited their interests. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Recipients were found to be more likely to seek employment, but they tended to be more selective in their job choices.

One participant shared, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” explaining that they could avoid undesirable jobs due to their financial security. Another recipient mentioned how the assistance allowed them to accept a lower-paying entry-level position in their desired field, ultimately leading to a six-figure salary within two years. They stated, “If I didn’t have the cash transfers there is no way I could have taken that pay cut.”

While the study did not reveal significant differences in employment levels between recipients and the control group, it was noted that those receiving larger payments increased their spending primarily on essential needs such as food, housing, and transportation. The funds also aided individuals in addressing health necessities like braces and alcohol treatment. Though the payments provided initial stress relief, many health improvements diminished after two years.

Sam Altman has advocated for universal basic income amid concerns regarding the impact of artificial intelligence on the job market and its potential to displace certain jobs.

It’s important to clarify that a previous version of this article incorrectly identified the organization overseeing the study; it was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI.

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