Universal Basic Income (UBI) is a system in which the government provides every adult citizen with a regular and unconditional cash payment, regardless of employment status. While largely theoretical and without a long history, UBI has gained attention as a potential way to simplify social welfare systems and provide financial security to all adults.
Advocates argue that it could help reduce poverty and support individuals affected by job displacement from automation and advances in artificial intelligence. Critics, however, warn that UBI could be financially unsustainable and might discourage workforce participation. Political and public opinion remains divided, though several pilot programmes in different regions are testing its feasibility.
It is important to understand both sides, because the discussion touches on economic security, labour markets and fiscal priorities.
Historical Roots
The notion of granting a basic income to every member of society has deep historical roots. As early as the 16th century, Thomas Mor, a philosopher and statesman from England, referred to a type of guaranteed income in his book, ‘Utopia.’
Later, Thomas Paine, whose works influenced the American Revolution, proposed a basic income for citizens to be financed by government revenues in a tax plan. In 1967, Martin Luther King, Jr. also supported a guaranteed income in his book, ‘Where Do We Go from Here: Chaos or Community?’.
While the federal government currently supports low-income Americans through programmes such as the Earned Income Tax Credit and Temporary Assistance for Needy Families, no universal income system has ever been instituted in the United States.
Interest in UBI began to rise around 2020, driven largely by fundamental changes in the economy, especially the rise of automation, which threatened to leave many Americans in low-wage or unstable employment.
Pros Of Universal Basic Income
Universal Basic Income (UBI) and Guaranteed Basic Income (GBI) have the potential to fill gaps in the current US social safety net, which includes programmes such as SNAP (food assistance), housing vouchers and Medicaid. While these programmes provide targeted support, they often restrict spending to specific categories.
UBI, in contrast, is flexible. Recipients can spend the money for their most urgent needs, whether it is paying an electricity bill, covering child care, buying school supplies or saving for future expenses. This flexibility could allow families to pay bills, switch careers, save for the future and spend more time with their kids.
Beyond financial support, UBI pilots have shown positive social and psychological effects. Cash assistance can improve mental health, provide stability for workers to focus on higher-paying jobs rather than juggling multiple low-paying ones and reduce economic stress. Studies in Los Angeles and Illinois have even linked guaranteed income to lower instances of child abuse, neglect and domestic violence, according to a report in Business Insider.
Cons Of Universal Basic Income
Funding is another contentious issue. While some pilots are supported by private donations and philanthropy, others rely on local or federal government budgets, which can impact taxpayers. Legal challenges in Texas and Missouri have even halted programmes, citing the use of public funds for cash payments as unconstitutional.
There is also political opposition. In a number of states, from Arizona to Iowa to South Dakota, leaders have denounced UBI as “socialist” or a “one-way ticket to government dependency,” citing concerns over long-term reliance on government support.
Some limitations of the pilots also deserve consideration. Most pilots are temporary, and recipients often experience a financial loss after the payments cease. Though UBI, as a permanent programme, would avoid that problem, critics say the pilots cannot fully demonstrate long-term sustainability or effectiveness.
Countries And States With UBI
In the United States, several states have active basic income programmes, including California, Illinois, Colorado, New York and Georgia, among others. Many of these pilots target specific groups, such as parents with young children, pregnant individuals and families experiencing homelessness. Most programmes focus on Americans living at or near the federal poverty line to provide financial stability where it is most needed.
Globally, UBI has a longer history and growing presence. Canada ran a basic income programme in the 1970s, while countries like Brazil, China, Germany, India, Iran and Ireland currently have UBI or GBI pilots running. These international programmes explore how cash can be used to address poverty, inequality and economic insecurity across populations.
The Future Of Universal Basic Income
While many UBI initiatives in the US remain experimental, interest is reportedly growing in response to economic changes driven by automation and artificial intelligence. Supporters see it as a tool to provide stability and a safety net, while critics caution about the costs and potential impact on work incentives.
With debates continuing, policymakers and the general public must carefully weigh both the benefits and challenges to decide upon the feasibility of Universal Basic Income and its future role in society.