When AI takes over but gives you free money, this will happen

The video discusses the Unconditional Cash Study conducted by Open Research, which provided 3,000 participants with $1,000 per month for three years to assess the effects of Universal Basic Income (UBI) on their lives. Key findings indicated increased spending on basic needs, improved financial decision-making, and mixed health outcomes, while raising important questions about the feasibility and implications of UBI in the context of job automation due to AI.

The video discusses a significant research study conducted by a nonprofit organization called Open Research, backed by OpenAI CEO Sam Altman. The study, known as the Unconditional Cash Study, aimed to explore the effects of Universal Basic Income (UBI) on individuals’ lives over three years, starting in 2020. UBI is a system where the government provides citizens with a regular, unconditional cash payment, intended to cover basic needs like food, shelter, and clothing. This study is particularly relevant in the context of the ongoing AI revolution, which is expected to automate many jobs and potentially lead to widespread unemployment.

The study involved 3,000 participants from Illinois and Texas, aged 21 to 40, with household incomes within 300% of the poverty line. Each participant received $1,000 per month for three years, representing a 40% increase in their income. A control group of 2,000 participants received only $50 per month. The researchers aimed to compare the lifestyles, health, happiness, employment, and spending habits of the two groups to assess the impact of the unconditional cash payments.

Key findings revealed that recipients of the $1,000 per month increased their monthly spending by an average of $310, primarily on basic needs. Interestingly, they also provided 26% more financial support to others. In terms of employment, recipients worked slightly fewer hours but did not experience a significant drop in employment rates. They were more likely to actively search for jobs and pursue education or job training, indicating that the financial support allowed them to be more selective in their job choices.

Health outcomes showed a complex picture; while recipients had a 26% increase in hospitalizations and a 10% increase in emergency visits, there were no significant improvements in physical health or health-promoting behaviors. However, there was a notable decrease in problematic alcohol use and illicit drug abuse among recipients. The study also found that recipients demonstrated improved financial planning and decision-making skills, with increased autonomy in managing their finances.

The video concludes by highlighting the mixed opinions surrounding UBI, with some viewing it as a potential solution to poverty and a way to free individuals from the constraints of low-paying jobs. Critics argue that the study’s design was flawed, as it did not provide UBI universally and focused only on a specific income bracket. The discussion raises important questions about the feasibility of implementing UBI in the face of systemic poverty and the potential impact of AI on the job market, leaving viewers to consider the implications of such a program in the future.

Largest study on universal basic income (UBI) by OpenResearch. If you give people $1000/month, what happens?
#ainews #ai agi #singularity #ubi #unemployment

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0:00 What is UBI
1:48 Study design
3:20 Spending
4:05 Employment and education
7:02 Healthcare
10:20 Finance, planning, moving
11:23 Independence and starting a business
15:55 Family, relationships, mental health
18:16 Individual stories
19:12 Caveats and implications