Universal basic income

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Universal basic income (UBI) is a model of social security in which all citizens or residents of a country receive a regular, unconditional sum of money from the government, regardless of other income. The primary goal of UBI is to reduce poverty and inequality by providing a basic level of income to all individuals.

History

The concept of UBI can be traced back to the early 16th century, with the ideas of Thomas More in his book Utopia. The idea gained traction in the 18th century with thinkers like Thomas Paine and Marquis de Condorcet. In the 20th century, UBI was discussed by economists such as Milton Friedman, who proposed a form of UBI called the negative income tax.

Models of UBI

There are several models of UBI, each with different methods of implementation and funding:

• Full UBI: Provides an amount sufficient to cover basic living expenses.
• Partial UBI: Provides a smaller amount that supplements other income.
• Negative income tax: A system where people earning below a certain amount receive supplemental pay from the government.

Arguments for UBI

Proponents of UBI argue that it can:

• Reduce poverty and inequality.
• Provide financial security and reduce stress.
• Encourage entrepreneurship and creativity.
• Simplify the welfare system by replacing multiple programs with a single payment.

Arguments against UBI

Critics of UBI argue that it may:

• Be too expensive to implement.
• Discourage work and reduce the labor force.
• Lead to inflation.
• Be less effective than targeted welfare programs.

Pilot Programs and Experiments

Several countries have conducted pilot programs to test the feasibility of UBI, including:

• Finland: Conducted a two-year trial from 2017 to 2018.
• Canada: Ran a pilot program in Ontario from 2017 to 2019.
• United States: Various cities have experimented with UBI-like programs, such as the Stockton Economic Empowerment Demonstration.

Related Concepts

• Guaranteed minimum income
• Negative income tax
• Social security
• Welfare state

See Also

• Basic income around the world
• Citizen's dividend
• Economic inequality
• Social safety net

External Links

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