Universal Basic Dividend
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In general, I think the idea of a universal basic dividend is a very strong idea. I like the idea of promoting equality and providing a fallback for Americans, but I do have some concerns, particularly with welfare programs and the elimination of minimum wage.
Public View of UBI
In the presentation, we could see that Dailywire polled 3,000 adults about UBI and almost 50% agreed. I don’t think this number encompasses a big enough sample size to determine whether or not this would be a popular policy to pass. I also think there are negative connotations associated with the phrase universal basic income. When I hear UBI I automatically think about socialism or a highly-restricted economy where every person makes the same amount of money. With a universal basic dividend, there is still plenty of freedom to work and gain income, the dividend is more of a fallback. I think when most people hear the words universal income they could automatically reject the idea because they see themselves as not being able to move up in the world. I like the idea of dividends because it is an additional portion of income rather than a completely set income.
Equality vs Equity
I was interested in how the proposed universal basic dividends were beneficial to the middle and lower classes. Typically, when I hear about plans to change the economic system of the United States, I hear “tax the rich”. This stance on universal basic dividends would go to all citizens, regardless of merit or need. Another commonly proposed theory in politics is equity instead of equality. This means providing more resources and making financials less of a burden to those in lower classes who need it. The theory of a universal basic dividend would eliminate the idea of equity, and make the primary goal of the United States to be equality. Although equity is a good idea in theory, it is difficult to determine exactly how to ensure that equity is being used properly. The idea of “tax the rich” goes into the theory of equity. Taxing a higher percentage from the higher classes and taxing a lower percentage from the lower classes is a way that equity could be present in the United States. However, determining who should be taxed more and who should be taxed less would be difficult and unpopular. The universal basic dividend eliminates this difficulty in determining equity. Allowing equality to drive the income and taxation on everyone is fairer and easier to implement. In this way, I do like the idea of a universal basic dividend.
Welfare Programs
I had more thoughts and questions about the elimination of welfare programs and replacing them with the universal basic dividend. I think this could be a good idea, especially if the dividend is paid monthly instead of a lump sum during the year. However, I was concerned about the extent of the welfare programs that would be eliminated. Health insurance for a single person can cost around $500 a month. This is 2/3 of the monthly universal basic dividend. Would Medicaid still exist for people who had an additional income under a certain amount? I think that some welfare programs would still need to exist. I could see food stamps or SNAP being eliminated because the dividend could be used for purchasing food or other necessities. $9,000 per year would be a great additional dividend to people who have another source of income, but it would be extremely difficult to live on this amount every year. There would still be a homeless population, especially in larger cities with a higher cost of living. I think that some programs, such as subsidized housing, assistance with finding jobs, and Medicaid would still need to exist.
I also like the idea that elderly people would get a higher dividend for their medical expenses. However, I think this may need to be extended to others with higher medical expenses, especially those with long-term medical issues. If universities aren’t based on a percentage of the dividend, then I think those who are attending colleges or trade schools should also receive a higher dividend, especially if pay in the workforce is based on skills, rather than a minimum wage.
Elimination of Minimum Wage
I am concerned about the lack of restrictions on minimum wage. Although there would be new businesses and opportunities because of the increased availability for entrepreneurship, I still think there should be some kind of restrictions on minimum wage. With complete freedom over their employees’ wages, I could see some abuse of power. In the presentation, it was mentioned that pay rates will be based on skills. I’m interested in hearing more about how a person’s skills, and therefore pay rate, will be determined. If a person has “low skills”, they could be paid only a dollar or two per hour. That means that the majority of their income would come from the universal basic dividend. Not being paid a livable wage will limit peoples’ options on where they can live and their lifestyles. Another important factor in the elimination of minimum wage is the cost of schools. Going to a trade school or university is the primary way of improving someone’s “skills”. If universities required a percentage of an individual’s yearly universal dividend instead of the high prices that they are now, then I think eliminating the minimum wage could be fair. This would make it easier to improve someone’s “skills” and allow them to make a living wage other than the yearly dividend.