Here's What Happens When You Give People Free Money

OpenResearch, a lab funded by OpenAI CEO Sam Altman, has released initial findings from a comprehensive study on unconditional cash transfers. The experiment, conducted from 2020 to 2023, provided $1,000 monthly to 1,000 low-income Americans across Illinois and Texas. Results showed recipients primarily used the funds for basic needs and increased spending on healthcare and leisure activities. While the cash boost led to some positive outcomes, including increased business startups among Black recipients and women, it did not significantly improve long-term financial health or physical well-being. The study also noted a reduction in work hours among participants, with earnings dropping by at least 12 cents for every dollar received.

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