Sam Altman, CEO of OpenAI, has initiated the largest basic income experiment in the United States through his nonprofit organization, OpenResearch. This innovative study provided unconditional cash payments to individuals living below the poverty line over a three-year period, involving approximately 3,000 participants aged between 21 and 40 from Texas and Illinois, all of whom had annual incomes below $30,000.
In this research, one-third of the participants received $1,000 each month, while the remaining individuals made up a control group that received just $50. The findings indicated that those receiving the higher cash payments experienced greater flexibility in their job searches, allowing them to pursue roles that aligned better with their personal goals and values.
According to the authors of the study, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.” Many recipients expressed a newfound ability to be selective in their job choices rather than feeling forced to accept subpar positions due to financial constraints. One participant shared how the cash transfers allowed them to build savings and be discerning in their job search, alleviating the pressure of taking any job merely to meet immediate financial needs.
Another participant illustrated the positive impact of the cash transfers, noting that it enabled them to accept a lower-paying role in their desired field, ultimately leading to a lucrative six-figure salary in just two years. They acknowledged the crucial role of the cash transfers in affording them that opportunity.
While the study indicated no significant difference in employment levels between the two groups, it did reveal that recipients primarily increased their spending on essential needs, including food, housing, and transportation. This financial support also assisted individuals in addressing health-related expenses, such as braces and treatment for alcoholism. However, it was noted that although the payments initially helped reduce stress, the associated health benefits diminished after two years.
Sam Altman, a vocal advocate for universal basic income, has emphasized the importance of such initiatives amid the evolving job landscape due to advancements in artificial intelligence, which may displace certain jobs in the future.
This study highlights the potential advantages of a basic income model, showing that financial support can empower individuals to make more informed career choices and invest in their futures, which fosters a stronger economy and a healthier society. It demonstrates a hopeful outlook on how cash assistance can positively influence lives and encourage more meaningful employment paths.