According to the recently published results of the study, recipients primarily spent the additional income on essentials like rent, transportation, food, healthcare, and supporting others, increasing their overall spending by around $310 per month. Their savings in bank accounts also increased by nearly 25%.
Employment rates decreased in the second and third years, but recipients remained active in the workforce, working slightly fewer hours, and had increased flexibility and agency in making employment decisions. Some accepted lower-paid positions initially but later achieved higher salaries.
Initial reductions in stress, mental distress, food insecurity, problematic drinking, and painkiller misuse were observed, but the effects faded over time. The study found no significant impact on healthcare access, physical health, educational attainment, or business start-ups.
Recipients expressed mixed emotions, with some regretting spending decisions, while the cash transfers provided financial relief and opportunities for better decision-making.
Altman initiated the study believing that basic income may be necessary to address the effects of AI on employment and wealth inequality.
While the cash transfers were beneficial and not used for drugs or alcohol, they did not address major concerns like income inequality and job loss. Critics raised concerns about potential over-reliance on support and withdrawal from the workforce. The study highlights that cash alone cannot address challenges like chronic health conditions, lack of childcare, or housing costs, and widespread implementation of universal basic income faces political challenges.
Altman, who donated to Andrew Yang's 2020 campaign supporting a "freedom dividend," repeatedly refers to the need for AI regulation and government intervention to address potential job losses due to AI.
Sources: Newsweek, Wired, Bloomberg, Business Insider, NPR, Forbes, Yahoo, Observer, Tribune, CFO, Quartz (QZ), TechStory, Vox, Bloomberg Law
This article was written in collaboration with Generative AI news company Alchemiq.
