Pros and Cons of Universal Basic Income

Universal basic income, or UBI, is a modern-day concept under which the government distributes cash payments to all. This concept has been around since Thomas More proposed a basic income to everyone in Utopia, written nearly 500 years.

Reasons For Universal Basic Income

Income inequality  has been on the rise over the past decades. The highest-earning 20% of US households have steadily brought in a larger share of the country’s income.

Wealth Gap The net worth or wealth gap between America’s wealthiest and more impoverished families has more than doubled from 1989 to 2016. At the same time, middle-class incomes have grown at a slower rate and represent a slower group.

Poverty The poverty rate in 2019 was 10.5%, or 34 million in the US. This rate was the lowest since 1959 and had been on the decline for the past few years.

The Pandemic Effects The coronavirus pandemic caused a severe economic downturn with high unemployment, which remains at high levels. Any improvements in poverty rates quickly reversed. Researchers headed by Zachary Parolin found monthly poverty rates rose to a high of 17.3% in August 2020.

Automation May Displace Workers There have been rising worries that artificial intelligence and robotics can displace workers in the future.

Pros of Universal Basic Income - Fulfill Basic Needs, Reduce Poverty And Gaps - Stimulate The Economy - Increased Standard of Living - More Freedom To Make Changes

Cons of Universal Basic Income

- It’s Costly and Complicated - Fear of Handouts Without Incentives To Work -Doesn’t Necessarily Abolish The Need For Welfare

Universal basic income or UBI is controversial. However, it has been gaining attention as gaps in income equality and wealth have widened. It is difficult to assess its merits as a potential government program with more questions than answers.

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