Free Money Experiment: UBI Study Results

Could Free Money Be the Future? A New Study Says It’s Possible

The idea of receiving free money with no strings attached sounds like a utopian dream. Yet, for the past eight years, this very concept, known as Universal Basic Income (UBI), has been quietly put to the test in America. OpenAI’s founder and CEO, Sam Altman, a staunch believer in UBI, has personally poured millions into this experiment through Open Research, a research lab he backs. His goal? To understand how a future inevitably shaped by artificial intelligence might look with a safety net like UBI.

A Glimpse into the Future: The Largest UBI Experiment in the US

Open Research has released the initial findings of its groundbreaking three-year trial, arguably the most comprehensive study on guaranteed income to date. Published by the National Bureau of Economic Research, the findings detail the impact of providing 3,000 individuals in Texas and Illinois with a monthly stipend of \(1,000 or \)500, chosen randomly. This research aimed to understand how a small, unconditional allowance could change lives.

Early results indicate that recipients primarily directed the funds towards essential needs:

• Basic necessities
• Medical care
• Supporting others

Future reports from the study will delve into the impact on areas such as:

• Children
• Mobility
• Crime rates
• Political engagement

To gather this comprehensive data, researchers employed various methods:

• Phone and online surveys
• In-person interviews
• Time diaries
• Third-party data (educational records, credit reports)
• Health biomarkers (collected from willing participants)

Open Research plans to make this anonymized data publicly accessible, reflecting their commitment to transparency and furthering the understanding of UBI.

A Global Movement Gains Momentum

While not the first of its kind, the Open Research study stands out for its scale. Numerous pilot programs exploring UBI have emerged globally, including a notable 12-year trial in Kenya, initiated in 2017 and funded by GiveDirectly.

Even the US and Canada have dipped their toes into the UBI waters. Alaska residents, for instance, benefit from annual payments derived from the state’s oil and gas revenues. Last year, California jumped on board with its first state-funded UBI program targeting former foster youth.

This surge in UBI interest signifies a “third wave,” according to Carl Widerquist, a basic income historian and professor. Widerquist, who provided insights to Open Research before the trial, believes the wealth of data collected should encourage the US government to seriously consider implementing UBI.

Silicon Valley’s Visionaries Weigh In

Sam Altman has long advocated for UBI as a crucial solution to poverty, particularly in the face of job displacement caused by automation. He envisions a future where UBI provides a safety net for those whose jobs become automated.

Other prominent figures in Silicon Valley, such as Elon Musk, have also entered the UBI conversation. While Musk’s stance has shifted recently, he initially championed UBI as a necessity in a future where robots outperform humans in most tasks.

The findings from the Open Research study could be pivotal in shaping the debate surrounding UBI. As technology continues to advance at an unprecedented pace, understanding the potential impact of programs like UBI becomes increasingly critical. This research offers valuable insights into the potential of UBI to provide economic security and reshape the future of work in an era on the cusp of significant transformation.

This article draws information from Sarah Emerson’s piece on Forbes.com.