Pros and cons of Universal Basic Income - Personal Opinion
Hello Project HOPE friends, I hope you are doing well. I wish you all a great start to the week. Today I want to tell you about something that I was reviewing this weekend, as a particular topic that has been talked about for years and has been offered as an option to reduce poverty, such as Universal Basic Income (UBI).
Universal basic income is an idea that has gained popularity in recent years. It is a system in which all citizens receive a regular amount of money, without conditions or the need to prove income. On a social level, this can have pros and cons, I will share those that I particularly consider most relevant, then I would like to know your opinion on the matter.
Let's start with the Pros of Universal Basic Income:
Unquestionably, we would have a Poverty Reduction, especially when we talk about extreme poverty, that is, those who have a monthly income of less than 5 or 10 dollars. Although it seems incredible, yes, there are people who earn much less than that. A UBI would allow people to cover basic needs such as food, housing and medical care, improving their quality of life.
Some states have programs to help people financially, but they tend to be very complicated processes, full of bureaucracy, and sometimes corruption. So I think universal basic income could Simplify the welfare system.
It could, depending on certain factors, be an Incentive for Entrepreneurship. Why do I think so?, let's see, by guaranteeing a basic income, people can feel more secure to undertake, to innovate or accept less paid but more satisfying jobs. This could foster greater creativity and economic dynamism. We know that there are people who would be very lazy if they receive the UBI. And I know it could be a double-edged sword.
Now, let's finish with what I consider could be the main Cons
Logically, we are pulling money, and giving away money in this way would imply a great Economic Cost. Where would this money come from?, probably by raising taxes, reducing expenses for other public services, in short, it would be quite difficult on this side.
It is likely that, by receiving a monthly income, many people rather have a disincentive to work. Which could reduce the workforce and negatively affect economic productivity.
As happens at any historical moment in which there is purchasing power, this results in an increase in Inflation, due to an increase in consumption and demand. And over time, this inflation would end up affecting everyone economically.
These are just a few points I wanted to share, but there are many more. To you, does this Universal Income thing seem like a good idea to you?, I read it in the comments.
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If the UBI scheme is managed effectively, it could help the people below the poverty line to earn a decent living. But this also has its own disadvantages.
Excellent read buddy.