Universal Basic Income: A Terrific Idea or An Expensive Mistake?

What would the world take on a scenario where all of its citizens regardless of whether they are employed or not receive a certain amount of money from the government on a monthly basis. Deep down it does sound like a dream, but then there are those who look for negativity and blame this policy. The objectives of Universal Basic Income stand divided across supporters and opponents as they both have a set of expectations pinned against it, ‘The UBI advocates on one side proclaim it to be the best weapon against poverty one would find, while the others firmly believe that it would only weaken society’s very structure’.

?It is time for UBI to be evaluated and for one specific angle to be addressed, ? ‘Is UBI a welfare epiphany or is it simply an outlandish call that can bear no meaningful rationale’.

The Argument in Support of UBI: How Can It Solve Poverty Once and For All and Bear Witness to Inequity?

1. Advanced Level of Peasant and Abolitionist Collectivization

Proponents argue that UBI is the best global anti poverty tool there is. Take vassal income for instance, all basic requirements are catered to like food, shelter alongside healthcare. There is no way someone could argue against this model. there will always be so many people who are relying on vassal income due to pre-requisites of providing a secure life to so many families.

An example that would best fit here is Finland’s two year (2017-2018) with 2000 unemployed citizens who were funded 560 euros every month… The preliminary conclusion that researchers reported was that people who were given that benefits experienced lower stress and higher levels of satisfaction with life.

2. Regulation of Businesses Such as AI or Robots

According to economists, multiple sectors such as transportation, healthcare and even manufacturing would be gravely impacted due to automation leading to significant job cuts due to increased number of AI and robots in respective industries. UBI could prove to be helpful as a protective shield for the workers in those industries.

Supporters’ Claim: UBI may balance economies during such transitions by guaranteeing people have money in hand which would ensure demand and growth.

3. Making Welfare Less Complicated

Universal Basic Income is a monthly payment that is simple and universal, hence, alleviating the overhead costs and the negative perceptions associated with welfare, as some critics claim.

The Case Against UBI: Is it a pipe dream?

1. Who’s Paying? Cost Questions.

Funding is the fundamental question that stakeholders will be concerned about as they worry that giving every individual around the world adequate funds will cost trillions of dollars.

Example: If every adult in America earned a monthly UBI of one thousand dollars, it would cost roughly S3.8 trillion a year – nearly the entire fiscal expenditures of the federal government.

Critics’ Argument: Using taxation as a source of raising funds would not be sustainable as it would require stifling businesses and curbing investments thereby having detrimental impacts on the economy.

2. Are Workers Still Needed?

While the government still funds the population with the UBI, opponents believe it would reduce the appeal of entry level jobs as people struggle to find an incentive for them.

Counterpoint: There would still be people that would not stop working, rather they would use the UBI to further their education or begin to start their own businesses.?

Real-Life Example: The population in the Finnish UBI experiment did not experience significant alterations in their employment ratio as well.

3. Risks of Inflation

It has been said that injecting a large amount of currency into an economy raises inflation. If the population has a better purchasing power, will it not be norm for landlords and business owners to charge more?

Historical Lesson: Hyperinflation endured by Zimbabwe and Venezuela serve as a clear reminder of the consequences of excessive printer capacity.

The moral question: Deserving vs. Entitled?

To put it more plainly, UBI goes against the social idea of considering merit why one is receiving financial assistance. Is it justifiable for states to give money to wealthy people who do not need it? Where such universal assistance programs do exist, opponents contend, resources are thrown away in helping the able bodied.

On the other hand, sponsor claim that universality obliterates discrimination and enmity. All receive the same and hence there is no cohesion and fairness.

UBI Increased Benefits Experiments: Was the Experiment Successful?

1. Canada

Canada is set to functionally ban UBI as Ontario witnesses this kind of poverty unskilled very bad impact on the people. People who take advantage of this program can receive a low assistance payment of $17,000 per year ranging from 2017 and 2018. They seem to have improved their health and lower fiscal stress, but the program itself was shut down because the expenses were too high.

2. Kenya

The non profit company give directly has put together an…? USI experiment that lasts 12 year in which payments are given out to over 21,000 people in Kenya. Currently it appears that there has been an enhancement in their health and education and local economy as seen in the early days of the plan.

3. Country’s Name to be focused on: India

People evidence from rural areas of India showed that they were able to attend school more often and feed themselves more adequately if they received cash transfers. Unfortunately, pervading the scheme doesn’t appear fast or easy.”

Is UBI A Global Approach Or Just A Continual Wish?

The whole argument regarding UBI is an issue of ideology.

It’s a right that has been granted except from social radicals who consider it the perfect answer to cut out poverty and reduce inequality as well.

The notion is dismissed especially by right-wing proponents who consider it not only as a pipedream, but a curse that would cause economic and social decline forever.

Actually, it’s very possible that UBI would not be a panacea. The concept of giving out the same amount of money to everyone regardless of income may sound easier to implement in developed countries than in third world ones. Experimental programs so far have yielded some outcomes but have also underscored other issues.

The naked idea such as UBI raises the same idea, that is, what is a reason of work, what is employment, what is money and what is the role of an archetype of ‘government.’

Final Thoughts: Should We Engage Into This Risk?

Elucidating on the concept, Universal Basic Income is not a pass that gives success in everything done nor a way to fail the whole economy. It is an ideology that shifts people’s perception of what poverty is and places them in a world where poverty ad doesn’t exist.

But for now, the question remains: Are we ready to take the leap into the unknown, or do we need to restrict ourselves to the resolve of our systems in existence?

Are we to be revolted or are we to take the risk as you suggest? Let us know in the comments below.

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