Respect Poverty

Cash ‘provides flexibility’: Study gave Americans $1K per month

The idea of guaranteed basic income remains controversial.

Story at a glance


  • The concept of guaranteed basic income, in which money is distributed directly to those in need with no strings attached, has gained support in recent years.

  • A new study by OpenResearch gave 1,000 people $1,000 monthly and 2,000 people received $50 per month.

  • Participants spent the money on essentials and supported others. Physical health was largely unchanged and stress returned after the first year, though flexibility increased.

(NewsNation) — A new study on guaranteed basic income by OpenResearch revealed the ups and downs of giving people cash with no strings attached.

The idea of basic income has been floated by some of the world’s richest people, including OpenAI CEO Sam Altman, who backs the nonprofit research organization that conducted the study.

$1,000 per month

Participants were given $1,000 a month for three years to use on whatever they wanted. While the extra cash helped provide some spending flexibility, after about a year, the financial stress returned.

As part of the three-year study, 1,000 people received $1,000 monthly and 2,000 people received $50 per month to spend how they chose. The cash was given to low-income Americans, and researchers discovered the money “provides flexibility.”

Positive impacts

Study participants upped their spending by more than $300 per month on average, using the money mostly on essentials like food, rent and gas.

Extra money, about $20 per month on average, was also used to support others financially, including friends, family and charitable donations.

Researchers also found that 26% of participants were more likely to go to the hospital and 10% were more likely to go to the dentist. Participants also reported less drug and alcohol use.

On average, participants worked nearly an hour and a half less a week, enjoying more downtime. Researchers also suggested people who received the extra money were more likely to have business ideas.

Financial stress returned

However, the extra money had little to no effect on someone’s physical health or how much participants exercised or slept. And while it provided some stress relief, financial concerns and stress returned about a year into the study.


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