What is Universal Basic Income

Universal Basic Income (UBI) is the idea that every citizen receives a standard amount of money regularly, no strings attached. The government programme UBI has been discussed as an alternative to current welfare systems, which often place harsh conditions on benefits and stigmatise those who need help. A universal basic income could help solve the abundance of temporary jobs with low pay and high risks and the growing inequality between rich and poor. This post will tell you everything you need to know about Universal Basic Income (UBI).

What Is the Goal of Universal Basic Income?

The goal of universal basic income is to provide security and financial freedom to all citizens by giving them a monthly or yearly sum of money that can be used for anything. The money would not be enough to live a luxurious lifestyle but would be enough to cover basic needs like food, shelter, transportation, and health care. While proponents of basic income say it would reduce the amount of bureaucracy in the system, sceptics say it would create a bureaucracy the size of the current system but with no oversight or accountability. Every adult citizen should know that Universal Basic Income would provide a guaranteed minimum standard of living for all citizens, regardless of their employment situation. It would replace other forms of government assistance for low-income households, like food stamps and Medicaid. 

How Would a Universal Basic Income Work?

As with any government program, there are a lot of details that would have to be worked out before a UBI programme would be implemented. The first step would be to decide on every citizen’s specific amount of money. There are a few different ways to calculate that amount. One way would be to base it on what the federal government programme currently spends on welfare, food stamps, and other assistance programmes. Another approach to implementing a UBI would be to give people the option between receiving a UBI and getting the benefits they currently receive. For example, in every set amount of money, if a family with two kids is currently receiving $7,000 in food stamps, they could either opt for $7,000 in UBI or keep the food stamps but get an additional $3,000 in UBI. That way, people who currently receive assistance could benefit from a UBI without reducing the help those programmes now provide.

Is UBI the Same as Basic Income?

A UBI differs from a basic income in a few ways. A UBI is given to everyone regardless of income or age, whereas a basic income is only given to people who meet certain conditions (e.g. having a low income). A UBI is given to everyone, whereas a basic income is given to only those who meet the requirements. A UBI is unconditional, whereas a basic income looks at your ability to contribute economically. A basic income would be more likely to reduce the amount of bureaucracy in the system. At the same time, a UBI would create the same bureaucracy the size of the current system but with no oversight or accountability. A UBI could be funded by sources, including carbon taxes, hikes to income taxes and capital gains taxes, and funds from existing government programmes. A basic income could be financed by authorities, including carbon taxes, hikes to income taxes and capital gains taxes, and funds from existing government assistance programmes. A UBI would be given to everyone while only offering a basic income to people who meet the conditions. And a UBI is unconditional, whereas a basic income looks at your ability to contribute economically.

Benefits of Universal Basic Income:

In theory, a UBI would ease the transition to a more automated economy, in which fewer and fewer people have full-time jobs, and more and more people have part-time jobs and freelance work. One of the biggest pros of a UBI is that it could reduce the growing income inequality between rich and poor. People who work in low-paying or high-risk jobs could get a UBI above the poverty line. A UBI would also be a more efficient way to give people additional income through the tax system. 

Conclusion

In short, a universal basic income would provide security and financial freedom to every adult citizen by giving them a monthly or yearly sum of money that can be used for anything. The money would not be enough to live a luxurious lifestyle but would be enough to cover basic needs like food, shelter, transportation, and health care. Some have argued that UBI would reduce the incentive people have to work and that people who receive UBI would be less likely to look for higher-paying jobs because they’d be financially secure even if they don’t find better-paid work.