The idea of implementing a basic income has gained significant attention in recent years, particularly within the tech industry. OpenAI CEO Sam Altman has been a prominent advocate of this concept, supporting the belief that basic income could mitigate the potential job losses that may arise from advances in artificial intelligence (AI). However, new research funded by Altman indicates that basic income may not be as effective in addressing these concerns as previously imagined.
Altman’s support for basic income led him to financially back OpenResearch, an organization that recently published its first research findings related to a multi-year study on the impacts of basic income. The study provided a group of one thousand individuals with a monthly income of $1,000 for three years, while a control group of two thousand individuals received only $50 per month. The researchers aimed to examine the effects of regular payments on recipients’ quality of employment, opportunities for human capital development, and overall economic mobility.
The study revealed that while basic income payments were helpful for meeting basic needs such as housing, transportation, and groceries, they did not lead to significant improvements in recipients’ ability to obtain better jobs or make substantial investments in human capital. In other words, the extra income was beneficial but not enough to drive substantial change in these key areas. The results, published by the National Bureau of Economic Research, stated that there was no impact on the quality of employment and no significant effects on investments in human capital. However, younger participants did show a higher tendency to pursue formal education.
Additionally, the study found that the regular payments had mixed economic impacts on program participants. Some individuals expressed an increased interest in entrepreneurship, but this interest did not translate into a significant increase in entrepreneurial activity. The report suggests that while many participants had aspirations of starting their own businesses, the additional cash alone was insufficient to enable them to do so.
Another notable finding was that the payments were associated with a decrease in work for some recipients. The extra income made it possible for them to take a break from their jobs, as they found the break more valuable than the additional dollar. Furthermore, while basic income helped some recipients pay for medical procedures and increased interest in healthcare, it had little to no net impact on their overall physical health. The study also revealed that the positive effects on recipients’ mental health diminished after the first year of the study.
These findings were derived from a variety of data sources, including surveys, administrative records, and a custom mobile phone app. The research aimed to provide detailed insights into the impacts of basic income on recipients’ well-being, including their financial stability, physical health, and mental health.
Although the study shed light on the benefits and limitations of basic income, it also highlighted the deep-rooted systemic issues that exist in society. One example from the study, featuring a recipient named “Jeremiah,” illustrated how basic income alone could not address the broader problems he faced, such as access to comprehensive healthcare and stable employment. While the extra $1,000 per month helped Jeremiah meet his basic needs, it was not sufficient to overcome the systemic barriers preventing him from accessing necessary healthcare and reducing health disparities.
The study’s less-than-stellar results demonstrate that solving poverty and addressing economic inequalities are complex processes that require comprehensive approaches. Income inequality in the United States has reached staggering levels, and the high costs of essential services like housing, education, healthcare, and groceries make it clear that simply providing extra income is not enough to drastically reshape individuals’ economic outlook.
In conclusion, the research funded by OpenAI CEO Sam Altman and conducted by OpenResearch provides valuable insights into the impacts of basic income on recipients. The study suggests that while regular payments can assist with basic needs, they do not significantly improve recipients’ job prospects or lead to substantial investments in human capital. It also highlights the complex systemic issues that need to be addressed to truly alleviate poverty and improve individuals’ overall well-being. These results indicate that a more comprehensive approach to tackling poverty and income inequality is necessary, going beyond basic income to address the underlying causes of these issues.
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