Link to the class: “https://www.youtube.com/watch?v=gsMxcNk5kWw”
What is Universal Basic Income (UBI)?
Universal Basic Income is a periodic, unconditional cash transfer to every citizen in the country.
Here, social or economic positions of the individual are not taken into consideration.
The concept of universal basic income has three main features. They are as following:
UBI is universal in nature. It means UBI is not targeted.
The second feature of UBI is cash transfer instead of in-kind transfer.
The third feature is that UBI is unconditional. That means one need not prove his or her unemployment status or socio-economic identity to be eligible for UBI.
Why Universal Basic Income?
As a form of social security UBI will help in reducing inequality and eliminating poverty. Thus it ensures security and dignity for all individuals.
As human labour is being substituted by technology, there will be reduced wage income and reduced purchasing power. UBI will compensate for reduced purchasing power.
How UBI works?
Under UBI, only those with zero income will receive the full benefits in net terms.
For those, who earn additional income over the basic income, the net benefits will taper off through taxation.
So even though the basic income is universal, only the poor will receive the full benefits.
What UBI means to the Government?
There would be drastic changes in the way government spends its revenue generated from taxation and other sources.
Currently, Government spends its revenue on various services as well as on subsidies.
UBI would mean that government may move away from service delivery and empower its citizens to access services through cash transfer.
