Universal Basic Income - Why Should We Adopt This? (2024)

Universal Basic Income - Why Should We Adopt This? (1)

Imagine never having to fear your job security, or worry about how to provide for your family, knowing that regardless of what happens at work, you and your family would always have the comfort of food and shelter. Some of us already experience this kind of financial freedom, and all that it provides, and we do all in our power to maintain this coveted position. Yet, the overwhelming majority are in an unholy matrimony with our jobs, awaiting the day when we no longer "have" to work, to stave off the cruelty of poverty. If we had the opportunity, what would we do with this newfound freedom from the dread and anxiety of unemployment? Would we continue to stay at our current occupations or would we pursue a different career path altogether? With Universal Basic Income (UBI), we would have the security of knowing that our survival and our immediate family's survival is not threatened or tethered to our ability to maintain a particular job.

Before you discount the feasibility of providing everyone a universal income, you should first consider the state of our current technological advancements. In the past it was necessary for humans to work to meet the needs of our collective survival. Now more than ever before, we have the possibility of having our civilization's needs met efficiently with the least amount of human effort possible. With increasing use of robots, automated machines, and artificial intelligence, we are moving towards a future where human effort will not only be unnecessary, but often producing an inferior outcome, in certain industries. As a race of human beings, we have gone from having to hunt, work hours in the fields, build tools, and wash clothes and dishes by hand, to having machines and automation perform many of these activities for us. Now we spend less time taking care of basic needs and more time trying to "earn a living". This shift in our pre-occupation will continue to occur at an even faster pace as more of our activities are taken over by machines. The transformation from human driven (analog) to machine driven (digital) production is not a probability but a reality, as corporations must advance and compete to stay alive. They will do this by adopting the most cost efficient methods of providing goods and services through digital transformation. The so-called "fourth industrial revolution" is unfolding before our very eyes. Will we sit still and allow the fight for jobs and survival to become more intense and cruel as we become more technologically advanced? Are we willing to allow economic collapse of our society or witness a dramatic increase in the societal woes bred by poverty and desperation, including violence, just to be able to stick to the principle that everyone must "earn their keep"? Or will we develop a new economic system that acknowledges our intrinsic value as human beings, and gives us the ability to pursue more meaningful lives and contribute to society in greater measure?

So what are the concerns about UBI ? Before we address the shortcomings, let's first consider why it might be important to consider. After deeper examination, one can argue that UBI may potentially ameliorate many more of society's issues, than just those caused by the rise of the machines. Let's start with the moral and ethical approach of why we should do it. Why should every citizen be granted a basic income simply by being alive?

Well the current alternative is that we have to "earn" our right to life which on close inspection seems absurd. Like other living beings on this earth, we are here by way of nature and biology, which should afford its own legitimacy. Yet we are taught that we must "earn" our right to life, since the lack of earning potential means our basic survival needs - food and shelter, are not guaranteed. The degree to which our life becomes threatened with low income depends on the ideologies and economics of the society we live in. Nonetheless, this so-called "merit based" approach to life is a giant fallacy. In most cases our fortune does not even depend on how much we actually contribute to society - but often rather how fortunate we are to have been born into certain families, circ*mstances and opportunities. This is especially true since the economic stratification takes place before we are born. Upward mobility is theoretically possible, and some will overcome the odds and reach success. However in reality, upward mobility is not as much of a true option as many think it is. If we instead move away from such a barbaric human sorting process, don't we start to elevate ourselves above the stratum of animals to our rightful place as intelligent and compassionate beings? Doesn't this higher level of rock bottom also start to challenge our very notions of each other as being worthy or unworthy, by giving each of us, at the very least, the right to exist? With UBI we are creating a world where people start off as equals in the most basic sense (where that notion does not currently exist today except in theory).

That being said, if we eliminate the worst of poverty, and allow people enough security to have true job choice in our future societies, what do you think will happen? Here are some potential scenarios, both good and bad to ponder in a future of basic income.

Taxes will increase and UBI will become a burden of the rich and middle class

People will decide not to work

There may be people who will decide not to work. Perhaps they will be content with having the bare minimum, and not contributing to society. If this is the case however, and society's needs are met, these individual life choices will not necessarily cause harm to humankind. It may make a difference to us if a large portion of people pursue this path, and their survival is now carried on the backs of a few hard-working citizens. Nonetheless, human nature shows us otherwise, as studies in universal basic income have already begun, and they reveal employment rates for those receiving basic income do not tend to decrease. Instead people now have the footing to pursue their goals in life without fear and anxiety. To make job choices they prefer and pursue education which will allow them to contribute more. In addition, the desire for more things, and basic consumerism will still encourage people to seek out additional income. Finally, the natural desire to create and engage will inspire many to continue to find meaningful work. Even children and young adults who are aware of their more secure financial position, are eager to pursue meaningful use of time.

People won't stay at any job for a prolonged period of time

This may be true as people will no longer remain at jobs that they hate, find unfulfilling, or make them mentally or physically ill. They will instead choose to work at jobs that make them happy, give them meaning and purpose, or help them feel inspired. This is not necessarily a bad thing because employees will be more engaged at work since they have chosen a particular job out of interest and passion, rather than out of necessity. Productivity levels can only increase given this type of environment. Those companies offering substandard jobs or conditions will have to improve to maintain a workforce. This is ultimately how a fair and equitable distribution of labor vs. pay should really occur in a modern society.

People will be trapped at the basic minimum level

Unlike many social service programs which currently exist, there isn't a fundamental requirement for demonstrated "need" which traps people in a situation of having to financially remain in a position to continue to receive benefits. They are free to be resourceful and pursue other economic avenues as their valuable time is not being taken up just securing basic survival, or proving they "deserve" to receive income. People are free to receive basic income and work to make as much money as they want without consequences. They have both the time and stability to determine how to take the next step and move to a higher financial rung on the ladder. This may still require support in other areas, such as health care higher education, and retirement, however we can potentially keep these other basic support systems intact, or consider a Universal Basic Infrastructure plan.

People will start more businesses and expand on their ideas

Without the fear of merciless poverty, hunger and homelessness, people are free to pursue business ideas, inventions and creative endeavors that they may not otherwise consider. The amount of goods, services, creative works and improved solutions to societal problems which can potentially come from a non-struggling, non-survival focused population, probably can not be overstated.

People will stop engaging in illegal acts to provide food and shelter for themselves and their families (i.e. robbery, drugs, prostitution) and will commit less crimes of desperation

If you can imagine that there are people who would do anything to survive, some may choose morally questionable life paths out of desperation. Those people involved in criminal activity as a means to offset poverty and feed themselves and their families would no longer feel the need to do so. Crime rates will likely decrease as those who are fueled to do so out of the desperation of poverty may no longer feel the need to.

Society would carry a lower burden of mental health and addiction issues

The other dirty offspring of poverty, besides crime and potential violence is mental illness and addiction. These negative effects, ranging from anxiety and depression, to drug and alcohol abuse or other mental health issues may decrease as a result of liberation from the worst of poverty. Initial studies have already shown a decrease in emotional disorders among children, such as ADHD and behavioral problems in previously poor households which began to receive a basic income.

Society would carry a much lower burden of hunger and homelessness

**If the universal basic income is geographically relevant, local and federal programs which currently exist to tackle these problems (albeit poorly in some areas) would not need to be relied on so heavily. People with low paying, or minimum wage jobs would be in a better position to provide for themselves. A minimum wage job + a basic income may lend itself to a better chance at true upward mobility and improved economy. People would not have to work 2 and 3 low paying jobs, or have to rely on publicly funded programs, in addition to working, to cover the costs of food and rent. Contrary to belief, many who are homeless or receiving public assistance actually have full time jobs, which do not provide sufficient income to cover their basic needs. Those who are disabled, and have limited options to work, may still need services to help them meet their needs.

As we can see, adding UBI to society lends itself to a variety of revolutionary changes in perspective and behavior, however our general human nature and financial structure may perhaps remains unchanged. We can still reward those brilliant thinkers, hard-workers and problem solvers in our society with the ability to work and receive payment for their contributions. People may achieve greater levels of job satisfaction, and productivity. Corporations may still endeavor to make profits by providing ever more appealing goods and services to consumers; while the consumer base is in a much more stable position, to be able to buy the products offered. It is a "trickle-up" theory, as wealth would have some redistribution to the consumer class and lower economic positions, allowing a reasonable compromise to the decrease in jobs, while maintaining the values of our current way of life. So... what are we waiting on?

**Note: This blog post was edited to more appropriately address the use of social services. As a basic income would still fall short of allowing people to fully support themselves, social support would still be needed to be funded. The idea is that the number of people who would have to use it would be lower, given the extra support of a basic income.

For an in-depth scientific, economic and sociological argument towards the importance and economic viability of Universal Basic Income, by Scott Santens, read here. Feel free to check out our other science, tech, sustainability and future blog posts.

#UniversalBasicIncome #UnitedStatesCurrency #Poverty #FutureSociety #FutureCapitalism #Riseofthemachines #DigitalTransformation #Jobs #FinancialFreedom

Universal Basic Income - Why Should We Adopt This? (2024)

FAQs

Universal Basic Income - Why Should We Adopt This? ›

And a growing body of research based on the experiments shows that guaranteed income works — that it pulls people out of poverty, improves health outcomes, and makes it easier for people to find jobs and take care of their children.

Why should we have universal basic income? ›

UBI leads to positive job growth and a better educated citizenry. The guarantee of UBI protects people from sluggish wage growth, low wages, and the lack of job security caused by the effects of the growing gig economy, as well as increased automation in the workplace.

How would universal basic income solve poverty? ›

In their idealized form, UBI policies would give every citizen a certain amount of guaranteed cash income with no spending restrictions. The theory is that this would reduce poverty, smooth income inequality and allow individuals more flexibility and security to gain more education or start businesses.

Who would get universal basic income what would they spend the money on? ›

Net beneficiaries of UBI are likely to be those people struggling to get by, so it makes sense they would spend most of the money on essentials, Karl Widerquist, a philosophy professor at Georgetown University-Qatar and the author of several books about UBI, told Business Insider.

What are the results of the universal basic income? ›

A monthly universal basic income (UBI) empowered recipients and did not create idleness. They invested, became more entrepreneurial, and earned more. The common concern of “laziness” never materialized, as recipients did not work less nor drink more. Both a large lump sum and a long-term UBI proved highly effective.

Would universal basic income cause inflation? ›

The analysis of inflation recognizes the potential for UBI to cause inflation but suggests that reported productivity increases may counterbalance this effect.

Would UBI increase taxes? ›

Hoynes and Rothstein (2019) find that funding a UBI that both replaces the existing transfer programs in the US and increases transfers to low-income families would require the federal tax revenue to increase by about 100%.

Does universal basic income reduce inequality? ›

UBI has the potential to mitigate income inequality, although the extent of its effectiveness varies depending on several factors. This paper discusses the advantages, historical context, and potential implications of UBI in addressing income inequality.

Does universal basic income discourage work? ›

“A key concern with a universal basic income is that it could discourage people from working, but our research shows that the possible reductions in employment seem to be offset by increases in spending that in turn increase the demand for more workers.”

How much would UBI cost in the US? ›

According to a research paper by investment management firm Bridgewater Associates, a UBI plan where every American citizen got $12,000 per year would cost $3.8 trillion.

What is an example of universal basic income? ›

Many ongoing and prospective experiments with universal basic income around the world refer to very different interventions. Examples include cash transfers to a selected group of unemployed people for a short time in Finland, to adults for 12 years in Kenya, and to randomly chosen households in California.

What country uses universal basic income? ›

Abstract: Reports that currently, no country has a universal basic income (UBI) in place, although several small-scale pilots and a few larger-scale experiences have existed. Only two countries—Mongolia and the Islamic Republic of Iran—had a national UBI in place for a short period of time.

What is money for everybody exploring universal basic income? ›

The once-bankrupt town of Stockton, California, initiated an 18-month experiment in February, distributing monthly checks for $500 to 130 randomly selected Stockton residents to mitigate poverty and inequality.

Why is universal basic income a good idea? ›

Research suggests that providing everyone with money to live could reduce poverty and inequality, and help people make better life choices.

How would UBI be funded? ›

FAQ about UBI. How would universal basic income work? UBI would guarantee every citizen within a governed population a regular payment from the government with enough money to live on. Most UBI plans would be funded by tax revenues and would either supplement or replace existing welfare programs.

How many states have UBI? ›

The cities or states getting the UBI Payments are Alaska, Alexandria, Arizona, Atlanta, Birmingham, Cambridge, Chelsea, Chicago, Columbia, Compton, Cook County, Durham, Gainsville, Georgia, Haldsburg, Hudson, Jackson, Long Beach, Los Angeles, Louisville, Lynn, and Marin County.

Why a universal basic income is better than subsidies of low wage work? ›

According to Kasy, this is less efficient than simply offering unconditional transfers to everyone. Second, subsidizing low-wage work depresses wages by essentially allowing employers to pay less than a livable wage, so EITC-type benefits are at least in part a transfer to employers, rather than workers.

Does UBI discourage work? ›

“A key concern with a universal basic income is that it could discourage people from working, but our research shows that the possible reductions in employment seem to be offset by increases in spending that in turn increase the demand for more workers.”

What are the greatest costs of universal basic income? ›

Providing $1,000 a month to every American regardless of income — which some scholars argue would make the policy more palatable than one targeted to people in poverty — would cost $3.1 trillion a year, nearly half the federal government's entire budget in 2021.

Is universal basic income a desirable alternative to conditional welfare? ›

Universal basic income (UBI) is a radical but, we believe, feasible alternative to the existing, failing welfare system. It could reduce poverty to unprecedented levels, address inequality within and between regions, and massively improve the nation's health.

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