Universal Basic Income: A Real Solution For Economic Inequality?

[tina_marie]

Universal Basic Income (UBI) could be the game-changer we need to reduce economic inequality. "A rising tide lifts all boats." What do you all think?

 

[jennifer.javier]

How would UBI actually work in practice? Would everyone really get the same amount of money?

 

[koechamos]

How would UBI actually work in practice? Would everyone really get the same amount of money?

Yes, everyone gets a set amount each month! But how do we fund it?

 

[adamhholmes]

It's typically funded through higher taxes on the wealthy or by reallocating existing welfare budgets. Some suggest a Value Added Tax (VAT) could work as well.

 

[mattm]

In my experience, direct cash transfers have a more immediate impact on poverty than traditional welfare programs. UBI could streamline support and reduce bureaucracy.

 

[mike1985]

But won't people just stop working if they get free money? I feel like it could make people lazy.

 

[keith]

But won't people just stop working if they get free money? I feel like it could make people lazy.

Actually, studies have shown that most people continue working even with UBI. It provides a safety net but doesn't replace the need for additional income for most households.

 

[nickdev]

Can someone share some examples of where UBI has been tried and its outcomes?

 

[jason51]

Sure, there have been pilot programs in Finland, Canada, and even in the US. In Finland, recipients reported higher well-being and less stress. In Canada, a program in the 1970s showed reduced poverty and increased health outcomes.

 

[samnichols]

Sure, there have been pilot programs in Finland, Canada, and even in the US. In Finland, recipients reported higher well-being and less stress. In Canada, a program in the 1970s showed reduced poverty and increased health outcomes.

Speaking of Canada, the Mincome experiment in Manitoba from 1974-1979 was particularly notable. It provided a guaranteed annual income to residents of Dauphin, and the results were quite interesting. Despite some initial concerns, the majority of recipients continued to work, and there were notable improvements in health and education outcomes. This experiment is often cited in discussions about UBI because it provides a long-term data set on the potential impacts of such a policy.

 

[drake69]

Speaking of Canada, the Mincome experiment in Manitoba from 1974-1979 was particularly notable. It provided a guaranteed annual income to residents of Dauphin, and the results were quite interesting. Despite some initial concerns, the majority of recipients continued to work, and there were notable improvements in health and education outcomes. This experiment is often cited in discussions about UBI because it provides a long-term data set on the potential impacts of such a policy.

That's a bit too much info but thanks for the details. Does anyone know if there are any current large-scale trials happening?

 

[keith]

There’s a UBI trial currently happening in Kenya, run by a nonprofit called GiveDirectly. It’s one of the largest UBI experiments in the world, aiming to track the effects over 12 years. Early results show improved mental health and greater economic stability, but it’s still early days.

 

[sarah_esteve]

That’s so inspiring! Imagine what a difference this could make for struggling families around the world. UBI could provide the freedom to pursue education or even entrepreneurship without the constant stress of financial instability.

 

[mattm]

I’ve seen some positive reports, but I think we need to consider how UBI might affect local economies differently. What works in Kenya might not work the same way in more developed economies. The impact on inflation, for example, could vary greatly.

 

[samnichols]

I’ve seen some positive reports, but I think we need to consider how UBI might affect local economies differently. What works in Kenya might not work the same way in more developed economies. The impact on inflation, for example, could vary greatly.

Good point, Matt. In fact, studies from various UBI trials show mixed results depending on the region's economy. For instance, in Alaska, the Permanent Fund Dividend program is a form of UBI where citizens receive annual oil revenue shares. While it hasn’t led to massive inflation there, it’s a more limited form of basic income. Different models, different outcomes.