The concept of Universal Basic Income (UBI) has continued to remain a hot topic, especially during these uncertain times. However, with the rise of automation and how technology continues to play a role in our daily lives, the debate seems more important than ever.
The issue is that UBI has both its supporters and opposers with valid points for all sides. So whether we should fully implement it or not remains uncertain. If you are unsure where you may land on the idea of Universal Basic Income, here are the main pros and cons of this economic concept.
What Is UBI?
So what exactly is Universal Basic Income? It is an economic system in which all citizens or residents of a country regularly receive an unconditional sum of money, either from a government or some other public institution, in addition to any income received from elsewhere.
The Pros of UBI
- Reduction of Poverty: Although not directly related to income, with a system of UBI in place, it is possible that poverty levels could drop.
- Easier System: The idea behind the implementation of UBI is that it may streamline the social welfare system. In addition, it may also reduce the overall administrative costs of such a system.
- Freedom to Work: Although you are still expected to work, individuals would be free to choose the type of employment they wish with UBI in place.
The Cons of UBI
- Unsustainable: The main issue doesn’t so much revolve around the implementation as it does the sustaining. How can we continue this? Who will pay for it? Is this even a good idea?
- Inflation: This is especially true when implementing UBI all at once. Inflation can be very problematic, causing an increase in prices for goods and services.
- Undermining the Motivation to Work: Although many supporters may not see this as a major issue, some see the implementation of UBI as undermining the motivation to work entirely.
With valid points on both ends, it is difficult to completely endorse or denounce Universal Basic Income as a whole. However, the concept continues to take hold across the globe, and time will tell if it takes hold in capitalist countries.