OpenAI gave $1,000/month to the poorest Americans, primarily used for basic needs, not improving health or financial well-being.

From Condé Nast: 2024-07-22 08:00:18

OpenAI CEO Sam Altman’s research found that giving $1,000 a month to the poorest Americans for three years primarily went towards basic needs like food and housing, but did not significantly improve their physical well-being or long-term financial health. The study aims to understand the impacts of unconditional cash on income inequality and job prospects in the age of AI.

OpenResearch’s comprehensive study on unconditional cash showed that while the grants were not wasted, they did not solve income inequality or the challenges posed by automation technologies. Advocates of universal basic income see potential, while critics view it as undeserved handouts. The research provided data to fuel discussions on both sides of the issue.

Recipients of the $1,000 monthly transfers increased spending on health, gifts, startups, and leisure activities. Some recipients reported starting or helping to start a business, especially among Black and female participants. Spending patterns showed priorities, with nearly all from each dollar going to higher spending, leisure, and minimal increased borrowing.

While participants enjoyed some benefits, increased borrowing and reduced work hours counteracted long-term financial gains. Researchers concluded that the cash transfers did not improve participants’ overall financial positions. Critics fear that excessive reliance on support may deter individuals from seeking work, despite the flexibility and increased agency the cash offers.

The research found substantial withdrawal from the labor market by participants, leading to concerns about the long-term impact on work habits and reliance on assistance programs. Despite no significant effect on physical health measures, participants valued time away from work, showcasing their priorities. The study underscores the complex relationship between cash, work, and well-being.



Read more at Condé Nast: An Open AI Backed Non-Profit Gave $1,000 a Month to Poor People. Here’s What They Did With It