Introduction
Humans have always dreamed of reaching a stage of well-being in which they can secure a livelihood without working, especially since in the old days the way of thinking imagined that people would not need to work in the future, and work would be merely for entertainment, while income would be provided by governments for their people.
This idea crystallized into one of the most progressive economic ideas, and it is now called “universal basic income”. It aims to secure a fixed, periodic, and unconditional income for all citizens, regardless of their economic and social status, to secure a basic standard of living for every individual, and some have already implemented it on a limited scale.
So what is the goal of universal basic income?
What are the most prominent global experiences in this regard?
What are the differences between economists regarding it?
Universal basic income aims to achieve several goals, such as eliminating extreme poverty by ensuring a minimum income for all members of society, reducing inequality by reducing the gap between the rich and the poor, and simplifying social care by giving members of society in-kind care instead of social care that depends on conditions and evaluations. Also supporting personal freedom by giving individuals greater space to make decisions regarding government support, whether related to education, work, or even personal interests.
Many countries have conducted various experiments to test the effectiveness of universal basic income, such as Finland, which experimented with it for two years, where a group of unemployed people received monthly payments without any conditions, and Canada, which also experimented with it for two years to study its impact on health, education, and work behavior, as many other countries also experimented this approach.
What combines these experiments is that they were conducted for short periods, and in limited areas, to study the impact, and the results of many of them were similar, in that the mental health and quality of life of the income recipients improved, without any proven economic results.
The idea of universal basic income is supported by social activists who see it as an effective solution to eradicate poverty and promote equality, also it’s supported by progressive economists who believe it is a catalyst for innovation and economic growth, same as some politicians who support the idea as part of their political programs to promote social and economic justice.
These groups believe that the idea can increase the purchasing power of individuals, thus increasing consumption, enhancing economic growth, and stimulating small and medium-sized companies by providing a stable income for individuals. This enables them to establish their own companies and create new job opportunities. This idea also gives employees greater freedom to leave their unwanted jobs and pursue opportunities that suit their passions and skills.
In contrast, universal basic income is opposed because of its high financial costs, and some economists believe that this income may encourage laziness and reduce the incentive to work.
As for the fundamental opposition, it is that universal basic income, according to its name, is for all members of society, while current government programs - which are limited by government budgets and capabilities - are allocated to social subsidies according to the individual’s condition. There are social programs to help the unemployed, job seekers, etc. That means subsidies are disbursed according to need and entitlement, not absolutely and without restrictions.
The idea of universal basic income has re-emerged again for many reasons…
The politicians exploit this idea by explaining that wealth is concentrated among the rich people, whose wealth is in continuous increase, while the poor and middle-income people do not receive their “fair” share of income.
This also includes the idea that artificial intelligence and automation will control jobs in the future, which may reach an extreme level, as some believe that governments should look for sources of income for citizens who will not find jobs because of artificial intelligence.
Conclusion
Universal basic income is nothing more than an idea that has not been adequately tested, and its economic impact is still not fully clear, large-scale experiences were not encouraging when many governments disbursed subsidies to their people during the Covid-19 pandemic, which was one of the causes of inflation in several countries, for example, America.
Some economists believe that government funds should be directed to economic activities that create jobs and that whoever loses his job can obtain a new job and be qualified to match his skills with the labor market, rather than to government cash subsidies.
All of this does not deny that the idea of universal basic income is an idea worthy of study, especially since it is a bright idea, but the mechanism for implementation still needs a lot of improvements.
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