Universal Basic Income is a social welfare system in which all members of a population receive a minimum, unconditional income stipend without a means test or work requirement.
Universal: It is paid to every individual and not targeted to a specific population
Unconditional: It involves no set conditions or sanctions and is given to those who are both employed and unemployed, voluntarily or not
Cash payment: It is paid in cash, which allows recipients to convert their benefits however they choose
Individual: It is paid on an individual basis (versus household-based)
Periodic: It is a recurring payment rather than a one-off grant
-Where does the money come from?-
UBI requires both new revenue streams (new taxes, ideally on high incomes, income from stock trading, automation taxes, and corporate taxes) as well as possible redirection of funds from existing programs. Ideally UBI would replace other social welfare systems that are currently dysfunctional or overly complex.
Won't people get lazy if they get money for free?
No. Data shows that people use their UBI to pay for basic necessities. Unemployed people receiving UBI are more likely to look for a job, and employment tends to increase when UBI is implemented. This is because people can afford to accept and stay in jobs that are more meaningful but might pay less. Typically, UBI is only partial, and isn't enough to survive on on its own.
Won't rich people leave if they're taxed more?
No. Studies have shown that when taxes are raised on wealthy people, the increase in public services and improvement in infrastructure, and the overall alleviation of local poverty improves the living conditions in the area for everyone, making wealthy people more likely to stay and even move to the area.
Won't UBI drive up inflation?
There is some evidence that cash assistance programs have a short-term effect on prices and inflation, but this data comes from the COVID pandemic and is likely not typical. Current inflation levels are not a reflection of consumer spending, but corporate behavior. More research is needed on this front.
-Ongoing or Recent UBI projects-
Stockton California UBI experiment
Stanford Basic Income Lab
OpenAI's Sam Altman UBI experiment (I know but it's data)
Kenya GiveDirectly UBI experiment
