How transformative would an extra $1,000 a month be for low-income Americans? That’s the question OpenResearch, started by the founder of OpenAI Sam Altman, set out to answer with its three-year Unconditional Cash Study. Participants were given $1,000 per month with no strings attached and their experiences were compared against a control group that received $50 per month.
The study’s director, Dr. Elizabeth Rhodes, sat down with Ms. to discuss the study’s findings and how cash transfers can help inform government policy to alleviate poverty.
Some highlights:
— “There are some very transformative stories and some ‘I was able to buy shampoo’ stories.”
— “We saw small reductions, about 2 percent or 1.3 hours per week, in employment. … Do we care that single parents are working a few hours less and spending more time with their kids?”
— “Critics of cash transfers argue that people will not spend the money in socially optimal ways, but participants spent to meet their basic needs.”