Universal Basic Income (UBI): Hello there I’m Rahul and hope you are well, in this article I going to walk you through what is universal basic income (UBI)? and also gonna discuss what is the current status of UBI in India 2020 so, a lot to know a lot to discuss and kindly make sure to read this article till the end, I hope you will like this article.
What is Universal Basic Income (UBI)?
Universal Basic Income is a government-funded economic policy where each and every citizen of a country will get a basic income on a monthly basis from the government to attend a basic standard of living.
This economic policy will keep each and every citizen of a country at a basic living standard where no one stays hungry or starve and it ensures a healthy society.
This policy is not new to the world in fact in 2010 Iran paid all its citizens a national basic income eradicate inequality and poverty in the country and coming to the latest news that on 29 May this year Spain announces 3 Billion Euro Universal Basic Income Scheme.
But you may raise a dozens question that
why the government will give free money to its citizens and how it possible to introduce this expensive economic policy and from where the government will get the money to sponsor the Universal Basic Income Scheme. The reason why the economies introducing a UBI scheme is
Job loss and unemployment due to Automation and Artificial Intelligence, Yes, these are the two major reason for introducing UBI schemes all across the world.
Due to the advancement of technology and machine learning, every work is being done automatically by robots, for example, the self-driving cars, Automatic Vaccum Cleaner, robots for receiving the order, and serving food in restaurants, and the self check out counters at the supermarket
Experts say that by 2025
robots will do half the work human does but they also even say they will not snatch our jobs but now or in someday the robots will definitely snatch our jobs and we will be unemployed therefore to compensate these job losses the economies are trying to keep its citizens at a basic living standard by introducing universal basic income policies so that they will not starve and the citizens do not have to think or work for food and nutrient that they deserve.
AI and automation are developing quickly which is the threat for millions of jobs all across the globe and now on top of it the COVID-19 pandemic make this process quicker, due to lockdown and uneven living standard there is
an estimated 12.2 crore Indians lost their jobs due to COVID-19.
Note: The Advantages and disadvantages of the UBI scheme are crafted by some assumptions made by the expert on both side and these are not tested at the ground level at a big scale.
Advantages of Universal Basic Income (UBI)
Eradicate Poverty: While the citizens are provided with a minimum income to at least maintain a decent standard of living and the citizens can manage their food and other basic needs, which eventually results in poverty-free nation.
Freedom to choose jobs: As the citizen is provided with a basic income on a monthly basis they don't have to work for food anymore, in fact, they can also even resign the job that they are doing forcefully for their household responsibilities and find the jobs which suit their passion. when people start following their passion the productivity of work will increase and that person will give time to innovate new things in their niche which results in the overall happiness of that person thereby the society.
The citizens will feel motivated to follow their passion and involve themselves in productive work rather than doing boring 9 to 6 job
Spend more time with their Family: As the citizens are following their passion we can assume that they can do the work whenever they want and spend more quality time with their family and also in between the work if somebody wants to study in any university can do easily and he/she do not need to worry about their daily household.
Less Beurocrasy and corruption: As it is a universal scheme by the government which will benefit each and every citizen of the country we can expect zero corruption under this scheme which regularly happens in other government schemes announces to the particular categories of people.
Disadvantages of Universal Basic Income (UBI)
Free money will make a person Lazy: When the government will provide a basic income to the citizens, they will become lazy as they do not need to work for food anymore.
Free Money will cause inflation: When each and every citizen are provided with the basic income the people will start purchasing goods and services that they are willing to get for a long time. If everyone wants a product or service obviously the price of that product will automatically increase due to huge demand and less supply the free money again will not be of any use.
UBI lead to overdependency: If a citizen get UBI from last 10 years and he had become super dependent on UBI that for any reason the UBI money is not given to that person he will not sustain by himself because he got too much use to UBI that he doesn't know what to do for a livelihood without UBI money.
Where will the UBI money come from: The Universal Basic income is a too expensive economic policy that the government had no idea from where to bring the money for UBI Schemes and if necessary the government is required to divert the money from other schemes to UBI which is not safe use money is argued.
Here I've crafted both advantages and disadvantages of Universal Basic Income scheme and I request you to share your thoughts on UBI schemes that will be successful or not.
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Ground-level experiments of UBI Schemes 2020
Finland: is the first European country to test UBI schemes, from 1st Jan 2017 to 31 Dec 2018 the government of Finland choose 2000 unemployed citizens and paid them UBI of 560 Euros per month which results in the better health condition of the people, and the overall happiness of the people had increased due to this UBI scheme, unfortunately, there wasn't any increase employment of the citizens.
Canada: picked 4000 citizens randomly and provide then with UBI benefits which start from 2017 and to end after 3 years but the government had changed in July 2018 and the scheme was canceled but still the result of 1 year is that the people stay healthier which saves medical expenses to the government and here also the happiness of the people had increased.
India: In 2010, some villages of India is chosen which is separated from normal working people so that an experiment can happen which results in people spending increased in food and healthcare, the children are sent to schooling in which the children showed 68% of growth rate in learning, more businesses were opened, the savings of the former had doubled and here also we can observe an increase in the overall happiness of the people.
Uganda: 535 people were chosen randomly and provided with basic which show similar results like India which creates more employment opportunities and businesses are flourished.
Where does the government bring money for UBI Scheme
- Imposing more wealth tax on a richer section of the society
- Diverting other economic policy or remove old schemes and only provide UBI scheme
- Compromising other work like infrastructural development in schools and hospital
- Imposing more tax on Alcohol and tobacco consumption
- Imposing more tax on casinos other play which involves betting money.
- Others sources
Conclusion:
This is all you need to know What is Universal Basic Income (UBI) 2020, I hope you have learned something from this article and hope you like this article.
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