Universal Basic Income is the socio-economic policy whereby the government gives each citizen a certain, fixed amount of money at regular intervals, irrespective of their income status, employment, or any other status. UBI aims to alleviate poverty and income inequality and provide financial security during economic turbulence.
Key Features of UBI
The amount is unconditional. It does not matter whose pocket it goes into, the same amount is paid for everybody, without any conditions.
Universal: It is available to everyone, after all, irrespective of income and job.
Scheduled Payments: All recipients of the amount concerned are entitled to receiving it. They receive it periodically, either monthly or yearly.
Cash Payments: The money so distributed can be used directly; recipients can make choices regarding spending them.
Objectives and Advantages
Poverty Elimination: UBI offers a guaranteed basic living standard to every individual. A source of financial security can come during times of job loss or changes in the economy as a result of automation.
Simplifies Welfare: Basic income could replace many complicated social programs, reducing bureaucracy.
Encourages Entrepreneurship: With basic needs covered, people may be more likely to take risks or engage in more creative ventures.
Challenges and Criticism
Cost: Implementation could be expensive, requiring higher taxes or other budget reallocations.
Inflation Risk: There is a potential risk of inflation with the actual delivery of a large sum of cash
Work Disincentive: Some people feel that by giving a guarantee of income to all citizens, it may serve as disincentive to work.
Targeting Needs: Critics argue that UBI is nowhere nearly as effective as targeted welfare programs in protecting vulnerable groups.
Real-World Examples and Trials Other places around the world and on a regional basis have tested UBI:
Finland: Ran a two-year pilot from 2017 to 2018, offering a monthly stipend for unemployed people.
Canada: Gave experimental UBI in Ontario but withdrew the program.
Alaska: Offers a type of UBI through Permanent Fund Dividend, paying out oil money yearly to its citizens.
UBI finds itself central to many discussions about the future of work in the automation era, now being debated by economists, policymakers, and tech leaders. Proponents argue it is a kind of economic resilience, while critics dispute the feasibility of it working.
