The idea of a universal basic income is not new. As we have already commented in other entries of our blog, among the defenders of basic income are economists, philosophers, trade unionists, politicians who for centuries have been betting on a universal basic income for various reasons. The novelty is that entrepreneurs, whose commitment to UBI has so far been anecdotal, begin to publicly support this measure to be implemented in the future. Thus, Elon Musk, the CEO of Tesla claimed this summer that. “There’s a good chance we’ll end up with a universal basic income, or something, because of automation. Yes, I’m not sure what else can be done. I think that’s what happens,” he said. Or Mark Zukerberg, CEO of Facebook, during a speech at Harvard University in 2017, spoke to students about the need to explore universal basic income as a way for no one to lack the money they need to live.
In this post we will explain 3 of the many reasons that exist to bet on a Universal Basic Income:
1/ Universal basic income guarantees a minimum standard of living. People are entitled to a certain basic standard of living, regardless of whether they are able to participate in the labour market. The Universal Declaration of Human Rights, article 25, states: “Everyone has the right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing and necessary medical care and social services, and the right to security in the event of unemployment, illness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.” (United Nations, (UN)).
2/ Universal Basic Income Eliminates the “unemployment trap”. Under current subsidy systems, when someone gets a job they lose most of their subsidies. This means they can go from not working at all to working a full week without significantly increasing their income. This is a disincentive to work with. Under basic income, when people get a job they keep the same basic income pay, and add their salary, so the disincentive to work no longer exists.
3/Reduces bureaucracy. Administrations devote a lot of resources to making sure that welfare recipients do not make fraudulent use, and to managing the complicated payment system. A basic income would greatly simplify the welfare system by replacing most of these bureaucratic procedures, which would significantly reduce its administrative cost.
In the next post we will continue talking about other benefits provided by the application of a universal basic income. If you consider this content interesting, do not hesitate to register so that you receive all the valuable content we are creating. Your support makes the goal of ending poverty closer through a new economy that we promote among all the people who are part of the RBIU project.