Universal Basic Income

 

 

Economic Debate- Universal Basic IncomeFor this Economic Debate, we are going to look at the idea of the universal basic income (sometimes called a negative income tax). This has not been implemented in the United States but has grown in popularity in recent years. Essentially, the idea is that with a universal basic income (UBI) we could abolish all welfare programs and instead, each adult citizen would receive a set amount each month. It would not replace your other income, but everyone would receive it. For example, we may all receive $1500/month. Some would use that and work part time making minimum wage and be happy with their earnings, while some would go on to become brain surgeons, earning a salary of over $500K—they would still receive the $1500/month.Advocates for the UBI argue that welfare programs are much more costly, effectively working against the people by taking money that could be used in actual aid, and instead using it to fund the bureaucracy that is providing the aid. Advocates also say that it gives individuals maximum choice—as they are certain to receive the money with no restrictions on how they can use it.Opponents of the UBI argue that this policy would cost too much and would likely not have the intended effect the advocates claim. It would not only hurt the poor more (because even the poor would be taxed under this proposal), but it would also disincentivize productivity. Would people work as hard to create and innovate if they are receiving a guaranteed income?I’ve attached a few resources to give you deeper insight to the debate on the universal basic income. Some of the material is heavily in favor, some is heavily opposed, and some argue a slightly different approach. Also, you are not bound to the resource I have provided. If you do your own research, that is fine as long as you are using reputable sources. Using your understanding of economics, answer the question:Do you think the implementation of the UBI would be overall good or overall bad for America?Remember, if we are thinking like economists, the word “greed” should not factor into our discussion. “Self-Interest” exists, which means that we expect each person to make the most rational decision that will benefit them. So, given this discussion and the attached material, in 175 words or more, tell which approach you would implement if you were the sole decision maker.

 

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