We are going to discuss what is Universal Basic Income, not the benefit known as Universal Credit.
So what is Universal Basic Income??
UBI or Universal Basic Income is a gauaranteed amount of money each of us will receive each month…..regardless of if we work or we do not work.
It has been used in some other countries, and it appears that it may be trialed now in Wales.
UBI is not to totally replace all benefits, but to instead as stated guarantee everyone a basic income. If you are working and earning a wage, you will receive UNI on-top of your wages, sort of like a bonus.
Part of the thinking behind a basic income for all is that is will improve the economy; we will alll go out and spend the extra money.
Rich or poor, we may spend it.
Those not working, the income would guarantee a way to live, basic as it may be, it would be enough to cover the basics.
So how much would we receive?
It would depend on what the government(s) decided on. It could be an annual sum, or it could be broken down to monthly payments.
Arguments For and Against UBI
There are many advocates for Universal Basic Income, Sir Richard Branson, and Elon Musk are two. But there many who are against the concept.
Those for UBI state:
- It will promote equality.
- Improves the economy.
- More liesure time as people may work less hours.
- Could eliminate benefits and benefit fraud.
Those against UB state:
- Disincentives people to work.
- Doesn’t help the needy, doesn’t target those in need.
- Employers may reduce wages.
- May not help the economy as taxes may need to be increased to cover the funding.
You get an idea of how strong this argument can be either way.