Universal Basic Income (UBI) is a form of social security that guarantees a certain amount of money to every citizen within a given population, without having to pass a test or fulfill a work requirement. The essential principle behind it is the idea that all citizens are entitled to a livable income, whether or not they contribute to production and despite the particular circumstances into which they are born.
Mindy Marks, associate professor of economics at Northeastern University and applied microeconomics expert with a particular focus on labor, health, and education talks about UBI and the uncertainties around it. She says that, besides the basic income guarantee, an additional plus is that these unconditional cash transfers can be cheaper to administer than adopting a system, which entails a costly eligibility evaluation process. The negative that economists are most focused on is that- if one is provided income, then the incentive to work falls, referred to as the income effect. Recipients could waste their money on drugs or alcohol, stop working, or have more kids.
Loss of jobs due to automation is a major concern lately. Having a universal basic income in such scenarios may seem to be beneficial but there are always fear that non-deserving individuals would benefit from a basic income. Marks talk about the scenario in the US, “We are unlikely to see a basic income in the U.S. First, as I mentioned earlier, it would be costly. In addition, there are fears of abuse.”
Research conducted by Public Services International, a global trade union federation, could find no evidence to suggest that such a scheme could be sustained for all individuals in any country in the short, medium or longer term, or that this approach could achieve lasting improvements in well-being or equality. Although one cannot dismiss the benefits a generous, non-stigmatising income support can have on the sustenance of the unemployed sector of the society, experiments and pilots are being run around the world to explore and stabilise this model.
Anisha Naidu