Universal Basic Income (UBI), also known as Universal Basic Dividend is a policy where citizens are provided with a regular sum of money, regardless of employment status or current income level, so that poverty and inequality can be better abolished. With the addition of an economic policy like UBI, communities could find more security in their daily lives. With the help of a steady income people would be given the choice to take the steps needed to improve their lives.
In the lecture video, each word in Universal Basic Income/Dividend was broken down so we could have a fuller comprehension of what this new policy would mean. The word Universal means it goes to all citizens, regardless of merit or need. A universal policy like this could help end some inequality arguments, because everyone would be receiving the same amount at the same time to use for their current needs. Basic means it provides for basic needs. This includes food, water, shelter, and clothing. Income means there will be a direct cash payment. Dividend means there is a distribution of profits to eligible shareholders. This means a more reliable income stream would be possible for families/individuals and that finances would be more evenly spread out to society.
So, what are the overall benefits of the UBI system? One would be that this system allows an easier path to starting a new business because there would be less risk that you would not be able to maintain yourself financially. With a steadier income entrepreneurs can have less concern about their financial state so that they can confidently turn their creative ideas into real services/products. Another benefit is increased mobility for people. Both families and individuals will have a better opportunity to move to a location with better opportunities. This could mean there is a lower crime rate, a better school system, more manageable weather conditions, etc. Another benefit is that the government would no longer be able to pick “winners and losers” through subsidies and unfettered expansion. Lastly the greatest benefit we can see from this new system is that it would grant more individual freedom. People will no longer have to remain in their unfortunate circumstances just to gain help financially. They will no longer have to remain “caged” in their current circumstances just to continue to receive help/benefits.
A question I had was, what is the difference between Universal Basic Income and welfare? The welfare system was created with the intention to help those in need financially by providing them with a steadier income. Welfare is only for those who meet the eligibility requirements though (disabled, unemployed, special situations, etc.). While welfare is a system designed to benefit this group of people, it is often criticized can because it can also create a form of dependency in individuals. This could mean they might lose the desire to pursue work again or to even try something new that could alleviate their current situation.
Universal Basic Income on the other hand is a system designed to pay all citizens in a society, just for being a resident. Unlike the welfare programs, UBI is designed for all individuals regardless of their employment status or current life circumstances. With a system like UBI in place everyone would have an equal right to obtain financial security. Through that people would have a choice. The choice to say no to their current circumstances and then make a positive change in their lives. People under a UBI policy would not have to be stuck in a cycle of dependency. They would have the option to choose a new path in life that could lead them to better success as well as potentially benefit their future prospects.
A concern brought up was the possibility of overpopulation in the areas with a UBI policy. More people would assumably move to the areas thriving under the UBI policy. I came up with the thought that if there was an overpopulation it could allow the other areas struggling to completely remodel their policies and living conditions. Those communities’ people were leaving would see how well the locations with UBI policy are doing and hopefully be inspired to follow by adding similar policies or the UBI policy.
My overall opinion on the idea of a Universal basic Income/Dividend is that it is a very promising idea. I could see our country benefiting from something like this greatly because it would not benefit just the unemployed or those in unfortunate circumstances but also those employed and somewhat better off than others. The UBI policy is intended for all people. Say Oklahoma chose to adopt a UBI policy, individuals may become more open to make life changing decisions, and the economy could see changes with more security. I would hope to one day see places within our country attempt to implement something along the lines of a UBI policy so we can start to see a more impactful change in peoples lives.
