Here’s What Happens When You Give People Free Money
WiredJUL 14 2024
The results of a 3-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. A third of them were paid $1K a month and the others $50.
The study's results reportedly provide insights into the sustainability of a universal basic income model in a possible future driven by artificial intelligence.
The Sam Altman-backed study explored how artificial intelligence (AI)-induced job losses might necessitate universal basic income. It highlighted that cash provides flexibility and reduces stress. Despite mixed results, therefore, the need for universal basic income as an effective anti-poverty tool is evident, independent of AI advancements.
OpenResearch's study shows that giving $1K monthly to poor Americans didn't improve long-term financial health. It could potentially increase dependence on aid. So, while cash grants help meet immediate needs, they aren’t a comprehensive solution for job loss due to AI.