What is Universal Basic Income? Complete Guide!

The Basic Income Earth Network, a Universal Basic Income is

A periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement.

 

Why Universal Basic Income is comes in picture?

UBI become the discussion point for majoreconomist many of them are in favour. Few reasons among them are mentioned below.

Technological unemployment

Technology is now part of our life and as much as we are adapting it in our world it takes jobs of few people due to automation.
The White House, in a report to Congress, has put the probability at 83% that a worker making less than $20 an hour in 2010 will eventually lose their job to a machine. Even workers making as much as $40 an hour face odds of 31 percent.
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Less Corruption

Govt. runs so many social welfare programmes for the benefits of their citizens. Inspector or officers did corruption in process of choosing people who will be get those benefits.
In UBI payment will be unconditionally therefore there will be no corruption.

Less Poverty

Scheme will provided to all the citizen so living standard will increase, therefore there will be less poverty.
Why Universal Basic Income should not be implemented?
Economists have expressed concern about the basic income. They have below points to criticize universal basic income.

  1. It will cause decrease in motivation of work among people, with unforeseen consequences for the national economy.
  2. Providing everyone basic income required a large amount of money to economy to arrange them it would require a complete restructuring of the taxation.

Current State of Universal Basic Income?

Currently Universal Basic Income is not accepted by any country yet, but country like Canada, Finland, Netherland are discussing on it. On 5 June 2016 Switzerland reject the idea of universal basic income with 77% votes against 23%.

  1. Ycombinator is going to run the pilot project of UBI they will provide 1000-2000 $ to 300 people and observe their lifestyle.
  2. In Finland, the government is considering a trial to give basic income to about 8,000 people from low-income groups.
  3. Dutch city of Utrecht is also developing a pilot project that will begin in January 2017.
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