In a recent study funded by Sam Altman, the tech entrepreneur and CEO of OpenAI, the concept of Universal Basic Income (UBI) was explored, with a particular focus on how it could benefit the poor and disadvantaged.
Altman, a long-time advocate for UBI, believes that providing a guaranteed income to the economically vulnerable could help address growing inequality and provide a safety net in an era of rapid technological change. But what does this mean for people who do not fall into those categories?
For those not considered poor or disadvantaged, the implications of UBI can be multifaceted. On one hand, UBI could potentially create a more stable economy by increasing the purchasing power of a broader base, thus benefiting businesses and, by extension, the middle and upper classes.
A healthier economy generally means more opportunities for everyone, including those who are not directly receiving UBI.
The OpenResearch pilot began in 2020, when 1,000 low-income participants from rural, suburban and urban areas in Illinois and Texas started receiving $1,000 a month.
Two thousand others received $50 a month to participate in the study as a control group. Every beneficiary was at or under 300% of the federal poverty line, but on average their household incomes were under $29,000.
The recipients who started out with the lowest incomes used the cash differently than those who made more. They saw the biggest increase in spending on financial support to family and friends, and higher likelihoods of paying for their own housing compared to the control group — rather than, say, crashing with friends or leaning on others to pay their rent.Bloomberg
After three years of distributing $1,000 monthly to beneficiaries in Illinois and Texas, the organization has released a trio of research papers on its findings. Like many of the other studies released before it, OpenResearch finds that recipients spend more to meet their basic needs and assist others, and don't drop out of the workforce — although they work slightly fewer hours.
Beth (Rhodes) and the OpenResearch team have done critical research to shed light on questions around” Universal Basic Income, Altman wrote in a statement. “Amazing work over the last few years!”Sam Altman, Open AI
In addition to Altman, Rhodes said the study received funds from other individuals, as well as grants from the National Institutes of Health, National Science Foundation and Spencer Foundation.
“We really believe in this model for research,” said Rhodes.Elizabeth Rhodes, Open AI
A project supported by OpenAI’s founder Sam Altman tested the impact of monthly $1,000 payments to low-income individuals. It found increased flexibility and autonomy for recipients.
Altman announced funding for the project in 2016 when OpenAI had only recently started, and he was also running the startup incubator Y Combinator.
"It can be used to address recipients’ specific needs, is responsive to changing demands, and creates the possibility for increased agency," the researchers conclude. They resist generalizations on the findings, saying outcomes varied depending on recipients’ incomes starting out, their family structures and their priorities.Sam Altman
He wrote at the time that he was “intrigued” by the idea of basic income, but that there was “fairly little data about how it would work.” Altman hired Elizabeth Rhodes, OpenResearch’s research director to lead the basic income project through a nonprofit, YC Research, which ran a pilot in Oakland from 2016 to 2018. Under the new name of OpenResearch, the group began enrolling more participants in a larger study in 2019, with Altman continuing on as the main backer.
However, there could be concerns about how UBI is funded and what it means for those outside the targeted groups. If UBI is financed through increased taxes, particularly on the middle class, it could lead to dissatisfaction among those who feel they are paying for a program from which they do not directly benefit.
There’s also the question of inflation—if UBI leads to higher prices for goods and services, those not receiving it could experience a relative decrease in purchasing power.
Moreover, UBI could shift the social contract, altering the dynamics of work and income. For those who are neither poor nor disadvantaged, this could mean rethinking their roles in a society where a portion of the population is supported independently of employment.
Ultimately, while UBI could offer stability for some, it prompts complex questions about fairness, economic impact, and the future of work for everyone else.
Andrew Yang (born January 13, 1975) is an American businessman, attorney, lobbyist, author, and political candidate. He founded the political party and action committee Forward Party in 2021, for which he serves as co-chair alongside former New Jersey Governor Christine Todd Whitman.
The son of Taiwanese immigrants, Yang was born and raised in New York state. He attended Brown University and Columbia Law School, and found success as a lawyer and entrepreneur before gaining mainstream attention as a candidate in the 2020 Democratic Party presidential primaries.
His signature policy, a monthly universal basic income (UBI) of $1,000, was intended to offset job displacement by automation.
Marketed as a "Freedom Dividend", Yang has been credited with popularizing the idea of UBI through his candidacy and activism.
In conclusion, Sam Altman’s support for Universal Basic Income appears to me that this effort is more than just a philanthropic gesture; it may be a strategic move to mitigate the anticipated upheaval caused by AI and automation in the coming decade.
As technology advances at an unprecedented pace, the potential for widespread job displacement looms large, with millions of workers at risk of losing their livelihoods.
Altman’s advocacy for UBI could be seen as an attempt to cushion the blow of this impending disruption, providing a safety net for those who will inevitably be affected.
By endorsing UBI, Altman is likely acknowledging the profound economic and social challenges that AI is poised to create. The introduction of UBI could help ease the transition for a workforce that will need to adapt to a world where traditional employment opportunities may be significantly reduced.
This effort to mollify the catastrophic impact of AI-driven job losses is, in essence, a recognition of the responsibility that tech leaders like Altman bear in shaping the future.
While the benefits of UBI for the poor and disadvantaged are clear, the broader implications suggest that it is also a preemptive measure to address the societal fallout of AI’s rapid progression. In doing so, Altman is not only championing a solution for today’s economic inequalities but also preparing for the more profound challenges of tomorrow’s AI-driven world.
Bloomberg article cited:
Y Combinator on UBI:
https://www.ycombinator.com/blog/basic-income
Photo Credit Wired Magazine:
wired.com/story/sam-altman-openai-back/
Andrew Yang on Wiki:
Mark Derho is a seasoned expert in the Internet industry with over 25 years of experience in NYC's software development, digital marketing, and advertising sectors. A certified Google Partner, Mark specializes in content creation, AI chatbot development, open-source software, modern website design, and SEO/SEM marketing. He leads PR Website Agency and lives in Puerto Rico with his dog, Luno.
Join the Story on Instagram!
Become an Insider! Step into the world of luxury with RESIDENT Magazine. Click here to subscribe to our exclusive newsletter and gain unparalleled access to the latest in luxury lifestyle, high-end real estate, travel exclusives, and so much more.
Are you interested in advertising with Resident? Email us at advertising@resident.com to learn more.