Universal Basic Income

If we move towards a society that is going to work with unemployment, rather than provide little support, what are the options? A popular answer among economists is a Universal Basic Income (UBI). This would be a policy where there is a guaranteed minimum income for everyone. This would act as a safety net, so no matter your situation, everyone has an adequate standard of living.

This isn’t a new concept, but it was always seen as unfeasible. With the COVID-19 pandemic, we saw many authorities use something that wasn’t a UBI, but something similar. This has got the ball rolling, and the idea has gained a lot of renewed interest. With job displacement due to automation and other technologies on the rise, this could be our solution.

Essentially, it would work by every individual receiving unconditional regular sums of money that will allow them to purchase their basic necessities. This would reduce poverty, and give people economic security. Current welfare systems would be useless, and any administrative costs associated would be reduced. People do argue that it would promote laziness and discourage productivity. It could also likely raise taxes, and perhaps lead to increased inflation.

The conversation is growing, with people such as Pope Francis expressing his support for the idea. He said, "This may be the time to consider a universal basic wage which would acknowledge and dignify the noble, essential tasks you carry out." He firmly believes everyone should be able to live comfortably and chase their dreams.

The topic of UBI is both controversial and complicated, and we would require a complete reform of our economic system if we would want to pursue it. This change would have to be thought about carefully, but it would allow us to support our unemployed as automation continues it’s growth.