Here’s What Happens When You Give People Free Money
WiredJUL 14 2024
Altman Releases US' Largest Basic Income Study's Findings
Above: Sam Altman speaks onstage during A Year In TIME at The Plaza Hotel on Dec. 12, 2023 in New York City. Image copyright: Mike Coppola/Staff/Getty Images Entertainment via Getty Images
The Facts
The results of a three-year study on universal basic income, carried out in Illinois and Texas by OpenResearch — a group backed by OpenAI founder Sam Altman — are out.
The study involved around 3K people aged 21-40, earning less than $30K annually. For three years, 1K participants received $1K a month, while a control group of 2K received $50 a month.
The study's results reportedly provide insights into the sustainability of a universal basic income model in a possible future with a critical role played by artificial intelligence (AI).
The Spin
Narrative A
The Sam Altman-backed study explored how AI-induced job losses might necessitate universal basic income. It highlighted that cash provides flexibility and reduces stress. Despite mixed results, the need for universal basic income as an effective anti-poverty tool is evident, independent of AI advancements.
Narrative B
This study shows that giving $1K monthly to poor Americans didn't improve their long-term financial health and could potentially increase their dependence on financial assistance. So, while cash grants help meet immediate needs, they aren't a comprehensive solution for job loss due to AI.