Over the past three years, a substantial project in Illinois and Texas has distributed $1,000 monthly to participants, an initiative funded by Sam Altman, CEO of OpenAI, to examine the feasibility of Universal Basic Income (UBI) in the context of an AI-driven future. This research aimed to uncover how guaranteed income might influence recipients’ lifestyles, spending habits, and employment patterns. Fresh insights from the study now shed light on these impacts, offering a glimpse into the possible future of UBI.
In previous analyses, UBI studies worldwide have illustrated mixed outcomes regarding employment, well-being, and economic stability. Some projects demonstrated that recipients felt more financially secure and were more likely to pursue education and training, while others revealed negligible changes in employment rates. In contrast, Altman’s study emphasizes the nuanced changes in employment behavior and spending priorities among participants, differing from some earlier findings that suggested a more uniform impact of UBI.
Altman’s involvement in UBI dates back to his tenure at Y Combinator, where initial experiments with basic income were conducted. Those early trials also highlighted an increase in job-seeking efforts and educational pursuits among recipients. However, Altman’s latest endeavor, with its larger scope and varied participant demographics, provides more comprehensive data, particularly in areas like healthcare spending and residential mobility.
Impact on Employment and Goals
The study observed that participants receiving $1,000 monthly payments worked 1.3 fewer hours per week on average and were 2 percent less likely to be employed compared to the control group receiving $50 monthly. However, they showed a greater inclination toward meaningful work and were 10 percent more likely to actively seek employment. Additionally, 14 percent of the UBI recipients pursued further education or job training, indicating a trend toward self-improvement and skill enhancement.
Recipients were more likely to select interesting or meaningful work as an essential condition for any job.
Healthcare and Spending Patterns
The study also tied UBI to increased healthcare utilization. Participants spent an additional $20 per month on medical care and were 10 percent more likely to have received dental care in the last year. Overall, recipients’ expenditures rose by $310 monthly, with notable increases in food, rent, and transportation costs. These findings suggest that UBI can lead to improved living conditions and better access to essential services.
Although we find no significant effects on measures of physical health, the increased utilization of medical care may lead to long-term health benefits.
Altman has expressed that this research is crucial for understanding UBI’s potential in mitigating the economic disruptions caused by AI advancements. The initiative by OpenResearch, backed by significant funding, aims to explore various outcomes of basic income. It is expected that upcoming reports will delve into additional aspects such as politics, relationships, and children’s education, providing a more holistic view of UBI’s impact.
The evolving discourse on UBI continues to garner mixed reactions from tech leaders and economists. While proponents like Elon Musk and Geoffrey Hinton advocate for its adoption, others, such as Dario Amodei of Anthropic, remain skeptical, calling for alternative measures to address inequalities. This ongoing debate underscores the complexity of implementing UBI as a solution for future economic challenges.
