Sam Altman, the CEO of OpenAI, has spearheaded the largest basic income study in the United States through his nonprofit organization, OpenResearch. This groundbreaking initiative aimed to provide unconditional cash payments to individuals living below the poverty line for 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 annually. Of these, one-third received $1,000 per month, while the control group was given only $50.
Findings from the study revealed that recipients of the larger cash payments experienced greater flexibility in job searches, allowing them to pursue employment opportunities that fit their personal goals and values. 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.” Many participants described how the financial support allowed them 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.” They emphasized that the support enabled them to avoid settling for unsatisfactory jobs in the immediate term. Another individual mentioned using the financial assistance to start in a lower-paying position within their desired field, which eventually led to a six-figure salary within two years. They credited the cash transfers as the lifeline that made this career transition possible.
While the study noted no significant differences in employment levels between the groups, recipients primarily directed their increased spending toward essential needs such as food, housing, and transportation. The payments also provided support for health-related expenses, such as dental braces and treatment for addiction issues. However, while the financial assistance initially reduced stress, many of the associated health benefits diminished after two years.
Sam Altman advocates for universal basic income as a means to support individuals in a rapidly evolving job market influenced by AI technology.
This study sheds light on the potential benefits of direct cash transfers, suggesting that such initiatives could empower individuals in their career searches and improve overall well-being. The results may inspire further research and application of basic income models, ultimately fostering a more equitable job market in the face of technological disruption.
This positive exploration into the potential impact of basic income could pave the way for discussions on policy changes aimed at supporting those in need in a changing economy.