Sam Altman’s giant basic income study is out, revealing significant spending on essential needs. The study, one of the largest of its kind, provided low-income participants with $1,000 monthly for three years with no strings attached.
The study revealed that recipients spent most of their additional income on essentials like rent, transportation, and food. While they worked less on average, they remained active in the workforce and were more selective in their job searches compared to a control group.
According to the study’s authors, recipients had more freedom to make decisions that suited their lives and plan for the future. This included moving to different neighborhoods and exploring new business ventures. Moreover, now that Sam Altman’s giant basic income study is out, it reveals that savings in bank accounts increased by nearly 25%.
Altman, CEO of OpenAI, contributed $14 million of his own money to the $60 million study. The research was conducted by OpenResearch and led by Elizabeth Rhodes. The experiment began in 2019, involving 3,000 residents from Texas and Illinois with incomes below $28,000. A third of the participants received $1,000 monthly, while the rest received $50 monthly. Participants did not lose any existing benefits.
Spending and Savings Increase
Those receiving $1,000 monthly increased their overall spending by an average of $310 per month, mainly on food, rent, and transportation. They also provided more financial support to others compared to the control group. Savings in bank accounts increased by nearly 25%.
As Sam Altman’s giant basic income study is out, it shows no direct improvements in healthcare access or physical health. The study found no direct improvements in healthcare access or physical and mental health. There were reductions in stress and food insecurity in the first year, but these effects diminished in subsequent years.
The study noted that $1,000 monthly could not address chronic health conditions, childcare shortages, or high housing costs. Recipients showed more interest in budgeting and advancing education in the third year, but there was no significant impact on educational attainment.
Fall in Employment Rates
The data confirms a decrease in employment rates among recipients. Sam Altman’s giant basic income study shows that employment rates fell among recipients in the second and third years. Employment rates fell among recipients in the second and third years compared to the control group. While overall incomes rose significantly for both groups, the control group saw slightly higher increases. Recipients’ incomes grew from just under $30,000 to $45,710, while the control group’s incomes increased to $50,970.
Thus, Sam Altman’s giant basic income study adds valuable data to the ongoing debate about universal basic income. According to the findings, recipients focused on rent, transportation, and food. The study revealed that recipients experienced temporary reductions in stress and food insecurity, which faded over time.
Altman believes basic income is crucial in the age of AI, which could make many jobs obsolete. The concept gained attention during Andrew Yang’s 2016 presidential campaign and has been supported by tech figures like Jack Dorsey and Elon Musk. Altman’s study adds to the growing body of research on the benefits and limitations of basic income programs.
The Experiences of Participants
- Sarah, a mother of four from rural Illinois, used the payments to pay for braces for her children and finance a graduation trip. She noted a shift in her financial mindset, becoming less careful with spending.
- Cara, who suffers from a nerve disorder, was able to pay off nearly all her debts with the $1,000 monthly payments. She described the financial support as miraculous.
- Celene, forced to move her family in with a friend after a failed business venture, used the money to buy necessities and eventually secured a job. The financial support helped her regain confidence and make better decisions for her family.
Also Read: Sam Altman Says ChatGPT Needs a Name Revamp to Clear Up Confusion.
