Sam Altman-backed UBI study shows the receipts

The Future. OpenResearch and OpenAI CEO Sam Altman concluded the largest-ever US study of the effects of universal basic income. Spoiler alert: giving people cash has a lot of benefits. Considering the inevitability of AI displacing a large swath of low-income and entry-level work, expect the study to become a centerpiece of the industry’s push to convince lawmakers to consider UBI legislation to soften the tech’s effect on society.

Cash relief
For three years, OpenResearch gave $1,000 to 1,000 residents in Texas and Illinois who made under $28,000 per year (and $50 to 2,000 residents as a control group).

Here’s what happened:

• Recipients increased their spending by an average of $310/month, using the money for basic needs like rent, groceries, and transportation. 26% also took the time to go to the doctor and dentist more.
• They worked slightly less than the control group to devote more time to family, were more strategic about how they applied for jobs, budgeted and saved more, and explored more education and entrepreneurial opportunities.
• Many said the cash lowered their stress levels (at least during the first year), leading them to cut down on overindulging in alcohol and unprescribed painkillers.
• They were also more generous with their money, offering financial support to others.

The findings from the $60 million study (Altman contributed $14 million of his personal money) mirrored those of dozens of other smaller studies. However, like those studies, the researchers, led by Elizabeth Rhodes, express that cash only solves problems up to a point.

Governments need to invest in infrastructure that makes each dollar go further and maximizes people’s quality of life.