Universal Basic Income: A Bold Solution for Our Economic Future

Universal basic income proposal to possibly account for modern inflation and the cost of living rising drastically.

While America struggles with economic inequality, automation, and the evolving nature of work, the idea of Universal Basic Income (UBI) is gaining more traction as a possible solution to some of society’s most pressing challenges. 

At its core, UBI proposes a simple yet radical concept: every citizen, regardless of their employment status or income level, receives a guaranteed sum of money from the government. 

Five years ago, presidential candidate Andrew Yang caught the eye of the public when ran on the fears of developing A.I with UBI being his solution. Yang proposed the idea of one thousand dollars a month for every American citizen from the age turn 18 to the day they expire. That’s an extra twelve thousand for every American citizen.

 Yang believed removing bloated government administrations as well as changing our welfare’s mismanaged budget would make UBI extremely easy to implement. While critics may dismiss it as unrealistic or costly, the truth is that UBI could be the economic lifeline we need to address a host of modern-day issues, from income inequality to high levels of job displacement because of tech. 

One of the biggest arguments in favor of UBI is its potential to reduce poverty and income inequality. In many countries, including the United States, the wealth gap has reached levels unseen in decades, with the richest 1% amassing wealth at an exponential rate while the middle and lower classes struggle to keep up, as claimed by the Tax Foundation Organization. UBI could serve as a direct way to ensure that every American citizen has a minimum standard of living. 

For individuals in low-income brackets or precarious work situations, a guaranteed monthly income could make an extreme difference in their quality of life. It would help pay for basic needs while giving individuals the financial flexibility to pursue education or entrepreneurship.

As technology continues to advance, many traditional jobs are being replaced by machines, algorithms, and artificial intelligence. From manufacturing to retail, industries are undergoing transformations that render many roles obsolete. 

The World Economic Forum predicts that over 85 million jobs will be displaced by automation by 2025, this statement was posted to their main site Jun 22, 2023 . As we head into this uncertain future, UBI could serve as almost a buffer for those whose livelihoods are at risk. By providing a basic income, UBI would give workers the time and security to upskill, retrain, or transition into new industries. Rather than leaving people behind in an increasingly tech-driven economy, UBI or even some kind of dividend could help ensure that everyone has a chance to thrive in a changing world. 

It could foster an environment where people are less dependent on jobs for survival and more empowered to pursue careers or projects that are fulfilling and meaningful. 

Critics often argue that UBI wouldn’t work financially or would disincentivize work. Despite them, multiple studies and pilot programs have shown that this is not necessarily the case. In fact, UBI could stimulate the economy by increasing consumer spending.

Alaska has a thriving economy despite its remote nature because of the Permanent Fund Dividend. The dividend is a form of UBI for the state’s citizens funded by the amount of Oil they have in the state. 

Additionally, pilot programs, like the ones conducted in Finland and Canada have already provided valuable data on how UBI can be integrated into different economic systems. These small-scale trials have demonstrated that UBI can be a viable and transformative tool with studies published on Basic Income Today, offering a glimpse into what a fully realized UBI might look like.

Additionally, UBI could encourage innovation by giving individuals the freedom to take risks and start new ventures. With UBI providing a safety net, more people might feel empowered to create new businesses, products, or services that could generate long-term economic growth. 

Unlike traditional welfare systems, which can be stigmatizing and complicated to navigate, UBI is simple and universal.  One might see it as a kind of ‘patriotic’ process where if you are a legal, documented citizen in your country, you will have access to a small amount of money every year, despite class. 

This universality would also reduce the shame often associated with seeking government assistance, creating a more inclusive and compassionate society. By directly addressing these problems through a guaranteed income, society could see long-term benefits in terms of improved public health, reduced crime rates, and greater social stability.

The biggest concern is speculating how exactly UBI would be financed when put into action. The Washington Post gives varying estimates, but some studies suggest that a national UBI program in the U.S. could cost upwards of three trillion dollars annually according to a Washington Post article in 2019.

This doesn’t need to be a barrier to implementation at all. There are several potential funding mechanisms, including wealth taxes on the ultra-rich, carbon taxes, and the reallocation of funds from existing welfare programs. 

The long-term economic benefits of UBI such as reduced healthcare costs, lower crime rates, and increased productivity could offset some of the initial costs. 

From addressing poverty and inequality to mitigating the impact of automation and stimulating the economy, UBI has the potential to reshape our economic future for the better. 

In this new era of rapid change and financial insecurity increasing among all age groups, UBI may just be the safety net we need to move forward as a society.

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