Sam Altman’s Cash Experiment: A New Era for Basic Income?

Sam Altman, the CEO of OpenAI, financially supported the largest basic income experiment conducted in the United States. 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 had annual incomes of less than $30,000. One-third of the participants received $1,000 each month, while the remaining participants were given $50 as a control group.

Findings from the study revealed that those receiving higher payments had greater flexibility in pursuing jobs that aligned with their personal preferences. 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 more likely to be searching for a job, but they were more selective.”

One participant expressed that the cash transfers allowed them to build savings, enabling them to be more discerning in their job search. They commented, “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”

Another recipient shared their experience of accepting a lower-paying entry-level position in a desired field. Within two years, they reached a six-figure salary, stating, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”

Interestingly, the study indicated no significant difference in employment rates between the recipients and the control group, with recipients primarily increasing their spending on essential needs such as food, housing, and transportation. The payments also facilitated health-related expenses, including braces and alcohol treatment. While the financial aid initially alleviated stress, many of the health benefits appeared to diminish after two years.

Sam Altman has advocated for universal basic income as the rise of AI continues to transform the labor market and displace certain jobs.

A correction noted that the study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI, as previously stated.

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