In 2020, during the COVID pandemic, 1,000 low-income individuals in Texas and Illinois were selected to receive $1,000 per month for three years as part of a study on guaranteed income by OpenResearch, a nonprofit research organization funded by OpenAI and its founder, Sam Altman. This initiative is part of a broader movement to explore the impact of basic income on people’s lives.
The concept of basic income has a long history in the United States, with figures like Thomas Paine, Martin Luther King Jr., and Milton Friedman advocating for it as a solution to poverty. The idea behind basic income is to provide individuals with the financial resources to meet their basic needs, such as housing, food, and healthcare, which can ultimately lead to greater financial stability and well-being.
Studies have shown that when people receive unconditional cash, they tend to use the money to address their basic needs and support their families and friends. This can lead to increased financial security and stability, as well as reduced emergency room visits. Cash is seen as a flexible form of support that allows individuals to decide how best to use the funds based on their specific needs.
The recent findings from OpenResearch highlighted the diverse ways in which participants used the cash, including covering basic needs like housing, food, and transportation, as well as supporting their friends and family members in times of need. This ripple effect of positive outcomes beyond the direct recipients demonstrates the potential impact of basic income on communities as a whole.
One interesting result from the study was that participants who received the cash worked an average of one hour less per week and were slightly less likely to be employed compared to a control group. This raises questions about the impact of basic income on employment rates and labor market dynamics. While some studies have shown no significant impact on employment, others have indicated reductions in hours worked, particularly in the context of the pandemic.
It is important to note that basic income is not a one-size-fits-all solution to poverty. While it can provide individuals with much-needed financial support, access to healthcare, education, childcare, and affordable housing are also crucial components of a comprehensive social safety net. Basic income should be seen as a complementary intervention that works in conjunction with other support systems to address the complex challenges of poverty.
Moving forward, more research is needed to understand how basic income programs impact different populations, such as individuals aging out of foster care or reentering society after incarceration. Long-term studies are necessary to assess the effects of basic income on health outcomes, particularly chronic conditions, and the long-term trajectories of children who benefit from these programs. By continuing to study and evaluate the impacts of basic income, we can better design programs and policies that effectively support those in need.
