Sam Altman’s Bold Bet: Can Cash Transfers Transform Lives?

Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The study provided unconditional cash payments to individuals living below the poverty line for a duration of three years.

The research involved approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One third of these individuals received $1,000 each month, categorized as the recipients, while the rest, serving as the control group, received only $50.

The findings indicated that participants who received the larger payments enjoyed greater flexibility in seeking jobs that aligned with their personal preferences. According to the study’s authors, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”

One participant noted, “Thanks to the [cash transfer] and being able to build up my savings, I can finally afford to be picky.” They added that they were no longer forced to accept unsatisfactory jobs due to immediate financial needs, allowing them to search for a more suitable position.

Another recipient described being able to accept a lower-paid entry-level job in their desired field, which ultimately led to a six-figure salary within two years. They stated, “Without the cash transfers, there’s no way I could have taken that pay cut.”

The study found no significant difference in overall employment rates between the larger payment recipients and the control group, with recipients primarily using the funds for basic necessities such as food, housing, and transportation. The additional payments also assisted recipients in addressing healthcare needs, including braces and treatment for alcoholism. While the initial payments reduced stress, many of the health benefits appeared to diminish after two years.

Sam Altman has been an advocate for universal basic income, especially as artificial intelligence continues to transform the job market and displace certain positions.

A correction has been made to clarify that it was Sam Altman’s nonprofit OpenResearch conducting the study, not OpenAI.

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