Is Universal Basic Income A Good Idea? Essay

Essay on Is Universal Basic Income A Good Idea?

Is Universal Basic Income A Good Idea? Essay :  Universal Basic Income is a socio-political financial transfer policy proposal in which every citizen of a particular country receives legally stipulated and equally set financial aid from the government. A basic income is proposed to be implemented nationally, regionally or locally. The policy would mean that financial resources would be distributed amongst citizens according to the needs of each region. This would also imply that the scope of growth for local and regional places would diminish. The already affluent social groups would be provided funds according to their needs and the less privileged would be granted the minimum since their existing needs are less than the affluent. The pros and cons of the Universal Basic Income Policy are as follows:

Discussion

Universal Basic Income(UBI) is favourable for certain situations but is detrimental to others. The various advantages and disadvantages of the UBI are listed below:

(a) Advantages

i) Universal income is effective in the reduction of poverty and inequalities of income.

It ushers in a positive change in physical and mental health

ii) UBI leads to the generation of job opportunities for people in the Below Poverty Line and unemployed people resulting in lesser student dropouts.

iii) UBI generates income sources for non-working parents and uneducated people, thus enabling them to earn by maintaining traditional unremunerated roles, especially women.

iv)Motivates socially beneficial tasks such as old-age care, community outreach programmes, orphan care, establishing and maintaining homeless shelters, etc.

v) Provides cushions for setbacks and motivates to take risks for setting up new business.

vi) The Governments would spend less to administer the programme and maintain traditional welfare making the lives of citizens simpler through straightforward financial assistance.

vii)The salaries could stabilize the economy during times of recession.

(b) Disadvantages

i)Universal Basic Income tends to transfer the share of money for improving the conditions of the poor to distribute between every other class of society. This could lead to an increase in poverty.

ii) UBI policies are expensive and difficult to implement in an extensive country like India. In India where people are divided by ethnicity, religion, and caste, it is probable to have disagreements over the distribution of funds.

iii) UBI removes the incentive to work, adversely affecting the economy and leading to a labour and skills deficit.

iv)Higher income would lead to higher taxes thus removing exemptions and reducing the incentives of work. The quality of work may degrade.

v)The support could facilitate anti-social elements and lead to an increase in criminal activities in society.

vi) Hassle-free income could result in a decrease in the labour force participation rate.

vii) A reduced programme with lesser payments won’t make a real difference to poverty-stricken classes of society.

Conclusion

To conclude,  Universal Basic Income (UBI)schemes propound several existing economic, social, and political values that respect all individuals and establish a sense of equality despite the diversity among people. It can prove to be effective in solving economic problems but may lead to an unprecedented crisis. As such it is a double-edged sword that if not planned and executed correctly can lead to aggravated social problems.

FAQs

Q1. Why UBI policies are difficult to implement?

Ans: It is because of the presence of ethnicity, race, religion and caste that might create disagreements.

Q2. State any one disadvantage of UBI.

Ans: It does not provide the incentive to work thereby creating a deficit in the labour force.

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Updated: December 2, 2022 — 11:46 am

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