OpenAI CEO Sam Altman conducted a basic income study that gave low-income residents $1k each month for three years, making it the largest such study in the US yet.
The results are now in — and at a time when AI is driving the conversation surrounding basic-income programs and the future of work.
How did the study work?
It involved 3k residents of Texas and Illinois with annual incomes less than $28k, per Business Insider.
- 1k received $1k per month
- A control group of 2k received $50 per month
Altman — a billionaire — put up $14m and raised an additional $46m to fund the study.
How did participants spend the money?
Those who received $1k spent an average of $310 more per month. This largely went to basic needs (e.g., rent, food, and transportation) — but they were also more willing to help others financially.
This aligns with an Austin, Texas, study that gave 135 households $1k per month for a year: They spent over half on rent, followed by basic needs, bills, investments, and giving to others.
Other impacts of the study…
… included a 20% decrease in problematic drinking, greater agency over where they lived, and the ability to pursue a new field or hold out for a better job. They still worked, though perhaps slightly less.
But while stress and food insecurity decreased in the first year, that faded over the next two.
"Cash alone cannot address challenges such as chronic health conditions, lack of childcare, or the high cost of housing,” the report found.
Why it matters
Altman has a vested interest in exploring what happens in a world where AI replaces jobs, and has long proposed studying basic income programs as a possible solution.
But, as the study found, they aren’t a magic bullet for poverty, and they often face pushback. Tying them to AI could render them dead in the water if AI never advances enough to replace human workers, or if it creates new jobs.
Economist Michael Strain told NPR that a better idea might be offering tax credits to lower-income workers.
Takeaway? A big duh: More money gives people more freedom to improve their lives. But how do we ensure that for everyone?
