Kayanna Mills

Final Paper

May 5, 2024

Universal Basic Income

In an era marked by growing economic inequality and technological disruption, the

concept of Universal Basic Income (UBI) has emerged as a promising policy solution to

address systemic inequalities and ensure economic security for all citizens. Universal

Basic Income, a regular and unconditional cash payment provided to every individual

regardless of their employment status, has gained widespread attention and debate among

policymakers, economists, and social activists. This essay aims to delve into the

multifaceted implications of Universal Basic Income, examine its potential benefits,

challenges, and implications for society. By synthesizing empirical evidence, theoretical

frameworks, and real-world case studies, we can better understand the feasibility and

impact of Universal Basic Income as a transformative policy intervention.

Before delving into discourse surrounding Universal Basic Income, it is essential to

establish a clear definition of the concept and its underlying principles. Universal Basic

Income entails providing all individuals with a regular and unconditional cash transfer from

the government, without means-testing or eligibility criteria. Unlike traditional welfare

programs, which are often stigmatizing and complex to navigate, Universal Basic Income

aims to provide a basic income floor to ensure financial security and dignity for all citizens.

As articulated by Philippe Van Parijs and Yannick Vanderborght (2019), “Basic income is not
just about reducing poverty; its about giving people a fair share of what belongs to them.”

This universal entitlement to a minimum income represents a fundamental shift in social

policy, challenging conventional notions of work, welfare, and citizenship.

One of the primary arguments in favor of Universal Basic Income is its potential to

stimulate economic growth, enhance productivity, and promotes social mobility.

Proponents argue that providing individuals with a guaranteed income can lead to more

efficient allocation of resources, increased consumer spending, and greater

entrepreneurship. As Rutger Bregman (2014) asserts in his TED Talk, “Why We Should Give

Everyone a Basic Income,” Universal Basic Income has the power to unleash human

potential and creativity by freeing individuals from the constraints of poverty and financial

insecurity. Moreover, empirical studies and pilot programs have demonstrated that positive

impact of Universal Basic Income on various socio-economic indicators. For example, a

study conducted in Finland found that implementing Universal Basic Income led to a

significant reduction in poverty rates and improved overall well-being among recipients.

Similarly, research from Guy Standing showed that Universal Basic Income recipients were

more likely to invest in education, training, and entrepreneurial endeavors, leading to long-

term socio-economic benefits for individuals and communities.

Beyond its economic implications, Universal Basic Income carries profound social

justice implications, challenging entrenched power structures and advocating for a more

inclusive society. At its core, Universal Basic Income embodies the principle of distributive

justice, recognizing that wealth and resources should be shared equitably among all

members of society. By providing individuals with a guaranteed income floor, Universal

Basic Income acknowledges the inherent dignity and worth of every person, irrespective of

their socioeconomic-economic status or contribution to the economy. This transformative

vision of social justice seeks to dismantle systemic barriers and address historical

injustices, such as racial discrimination, gender inequality, and intergenerational poverty.

As Eduardo Rodriguez-Oreggia argue in their critical analysis of Universal Basic Income in

Latin America, “Universal Basic Income has the potential to reduce poverty and inequality

by providing a basic income floor for all citizens.” By prioritizing the needs of the most

vulnerable members of society, Universal Basic Income represents a bold step towards

building a more just and compassionate world.

Despite its potential benefits, Universal Basic Income also faces significant

challenges and concerns that warrant careful consideration. One of the main criticisms of

Universal Basic Income is its affordability and fiscal sustainability. Critics argue that

implementing Universal basic Income on a large scale would require substantial financial

resources and could exacerbate budget deficits and inflation. Moreover, there are concerns

about the potential for Universal Basic Income to disincentivize work and perpetuate

dependency on government assistance. Critics argue that providing individuals with a

guaranteed income regardless of their employment status could lead to reduced labor

force participation and undermine the work ethic. Additionally, there are questions about

the distributional effects of Universal Basic Income and its impact on income inequality.

While proponents argue that Universal Basic Income can help reduce poverty and narrow

the gap between the rich and the poor, critics raise concerns about its potential regressive

nature. They argue that Universal Basic Income could disproportionately benefit higher-
income individuals and fail to address the root causes of structural inequality.

Furthermore, there are concerns about the potential for Universal Basic Income to

undermine existing social safety net programs and essential services, such as healthcare

and education.

In light of these challenges and concerns, it is crucial to explore implementation

strategies and policy considerations for Universal Basic Income. While the idea of providing

every citizen with a guaranteed income may seem utopian, there are practical steps that

policymakers can take to pilot and scale Universal Basic Income. For example, pilot

programs and experiments can provide valuable insights into the feasibility and impact of

Universal Basic Income in different socio-economic contexts. By carefully designing and

evaluating these programs, policymakers can assess the effectiveness of Universal Basic

Income in reducing poverty, promoting economic stability, and enhancing social welfare.

Additionally, it is essential to consider funding mechanisms and revenue sources for

Universal Basic Income, such as taxation, resource dividends, or sovereign wealth funds.

By exploring innovative financing options and engaging in public discourse, policymakers

can build broad-based support for Universal Basic Income and lay the groundwork for its

implementation.

In conclusion, Universal Basic Income (UBI) represents a bold and innovative policy

proposal with the potential to transform societies and address pressing socio-economic

challenges. While Universal Basic Income offers the promise of reducing poverty,

promoting economic stability, and enhancing individual well-being, it also raises significant

questions and concerns that must be addressed. As we continue to debate those merits
and drawback of Universal Basic Income, it is essential to consider empirical evidence,

engage in informed discourse, and explore alternative approaches to achieve social and

economic justice. Ultimately, the quest for a more equitable and inclusive society requires

bold experimentation and collective action to ensure that all individuals have the

opportunity to thrive.
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Standing, Guy. “The Case for a Basic Income: Guy Standing.” Great Transition Initiative, 2 Oct.
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“Why We Should Give Everyone a Basic Income: Rutger Bregman: Tedxmaastricht.” YouTube,
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