Basic income

Basic Income

Basic income, also known as universal basic income (UBI), is a model of social security in which all citizens receive a regular, unconditional sum of money from the government, regardless of other income. The concept is designed to ensure that everyone has enough money to meet their basic needs, thereby reducing poverty and inequality.

History

The idea of a basic income has been around for centuries, with early proponents including Thomas More in his 1516 book "Utopia" and Thomas Paine in the late 18th century. In the 20th century, the concept gained traction with economists like Milton Friedman, who proposed a negative income tax as a form of basic income.

Implementation

Basic income can be implemented in various ways, including:

• Universal Basic Income (UBI): A fixed amount of money given to all citizens, regardless of their income or employment status.
• Negative Income Tax: A system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes.
• Guaranteed Minimum Income: A means-tested version of basic income, where only those below a certain income level receive payments.

Arguments For

Proponents of basic income argue that it:

• Reduces poverty and inequality by providing a safety net for all citizens.
• Simplifies the welfare system by replacing complex welfare programs with a single payment.
• Encourages freedom and creativity by allowing people to pursue education, entrepreneurship, or other interests without the fear of financial instability.
• Provides economic stability by increasing consumer spending and reducing the impact of economic downturns.

Arguments Against

Critics of basic income raise concerns such as:

• High cost of implementation, which may require significant tax increases or reallocation of government spending.
• Potential disincentive to work, as some individuals might choose not to work if their basic needs are met without employment.
• Inflationary pressures, as increased demand for goods and services could lead to higher prices.
• Challenges in determining the appropriate level of income to provide.

Pilot Programs and Experiments

Several countries have experimented with basic income through pilot programs, including:

• Finland: Conducted a two-year basic income experiment from 2017 to 2018, providing 2,000 unemployed citizens with a monthly payment.
• Canada: The city of Dauphin, Manitoba ran a "Mincome" experiment in the 1970s, providing a basic income to residents.
• United States: Various cities and states have explored basic income through pilot programs, such as the Stockton Economic Empowerment Demonstration (SEED) in California.

Also see

• Universal Basic Income in Finland
• Negative Income Tax
• Guaranteed Minimum Income
• Social Security
• Welfare State