1/ Sam Altman gave low-income people $1,000/month for three years, no strings attached.
Now, the results of one of the largest guaranteed-basic-income studies are in.
Let's get into it.
Now, the results of one of the largest guaranteed-basic-income studies are in.
Let's get into it.
2/ Back in 2019, 3,000 Texas and Illinois residents were enrolled in this guaranteed-basic-income study.
The experiment was funded by Sam Altman, who raised $60 million for the study ($14 million of which was his own money).
The experiment was funded by Sam Altman, who raised $60 million for the study ($14 million of which was his own money).
3/ All participants had incomes below $28,000.
1/3 got $1,000/month for three years while the remaining control group members got $50 per month.
1/3 got $1,000/month for three years while the remaining control group members got $50 per month.
4/ For those who received the $1,000 payments, overall spending increased by ~$310/month.
Most of that money went toward food, transportation, and rent.
There was also an increase in offering financial support to others.
Most of that money went toward food, transportation, and rent.
There was also an increase in offering financial support to others.
5/ However, that doesn't mean those who received the $1,000 payments saw improvements across the board.
There was no "direct evidence of improved access to healthcare or improvements to physical and mental health," researchers found.
There was no "direct evidence of improved access to healthcare or improvements to physical and mental health," researchers found.
6/ While there was an increase in life satisfaction for a short time at the start of the study, it didn't last.
"Cash alone cannot address challenges such as chronic health conditions, lack of childcare, or the high cost of housing."
"Cash alone cannot address challenges such as chronic health conditions, lack of childcare, or the high cost of housing."
7/ But there were certainly some benefits that can't be ignored.
For those receiving $1,000/month, their total individual savings spiked by almost 25%.
And incomes rose significantly for all groups.
For those receiving $1,000/month, their total individual savings spiked by almost 25%.
And incomes rose significantly for all groups.
8/ Recipients of the $1,000/month saw incomes rise from ~$30,000 to $45,710, on average.
Incomes for those in the control group rose even more, to $50,970.
Incomes for those in the control group rose even more, to $50,970.
9/ Why the spike?
"Cash offers flexibility and may increase agency to make employment decisions that align with recipients' individual circumstances, goals, and values," according to researchers.
"Cash offers flexibility and may increase agency to make employment decisions that align with recipients' individual circumstances, goals, and values," according to researchers.
10/ As for what the study participants themselves felt, most couldn't believe their luck when selected to participate.
"Looking back, I regret that I didn't save more of it," one said.
"It's almost like a miracle," another said.
"Looking back, I regret that I didn't save more of it," one said.
"It's almost like a miracle," another said.
11/ What do you think? Are you for or against universal basic income?
12/ If you enjoyed this thread, follow us @MorningBrew
We post business breakdowns like this 3x a week.
We post business breakdowns like this 3x a week.
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