Universal Basic Income
Has UBI been tried before?
UBI has been tried in a few places around the world. 6 In Finland, a two-year trial saw a group of unemployed people given an amount which was 50 Euros more each month than they would have received as benefits. The group said they felt happier and were healthier than before, though the payments did not make any difference to employment levels. In Brazil, a privately-funded pilot scheme resulted in better living conditions, improved health, and better nutrition (especially in children). In Iran, in the only ongoing example of UBI, a scheme was put in place in 2011, which replaced subsidies on bread, water, electricity, heating and fuel with a cash transfer to all households of an amount which represented 29% of the median household income. This has not resulted in any notable effect on the workforce. 7
Should the UK introduce UBI?
A growing number of people in the UK are saying that now is the time to seriously consider UBI, particularly following the recent COVID-19 pandemic and in light of the current cost of living crisis. Last year, Andy Burnham, the Mayor of Manchester, said that UBI was an idea ‘ whose time has come . . . a universal basic income will put a solid foundation beneath everybody so that they can have a life with security and stop worrying about everything ’ . 8 Cleo Goodman, a co-founder of the initiative Basic Income Conversation, said, when backing the pilot programmes, ‘ no one should ever be facing poverty, having to choose between heating and eating’. 9 Tech giants like Elon Musk are also backing it. During a presentation he gave about artificial intelligence in 2021, he said that Tesla is working on a robot which would do ‘ dangerous, repetitive and boring tasks ’ so humans don’t have to. Arguing in favour of a guaranteed income in the future, he said : ‘ Essentially in the future, physical work will be a choice .’ 10 I think that universal basic income is good in theory but would not be feasible from a cost point of view. I think the cost of introducing such a scheme, so that it would provide an income which would prevent poverty and inequality, would be prohibitively high. A half-way house, which would provide a low-level income for all, could have the opposite effect; pushing more people into poverty and increasing the gap between those in work and those who are not. The government has a limited pot of money which could only be increased by significant tax hikes. The highest rate of tax is already nearly 50%. To push taxes 6 Worldpopulationreview.com ‘Countries with Universal Basic Income 2023’ , at https://worldpopulationreview.com/contry-rankings/countries-with-universal-basic-income/. Consulted 10 August 2023. 7 Geier, C. ‘Universal Basic Income in Iran’ , The Borgen Project at https://borgenproject.org/universal-basic-income-in-iran/. Consulted 10 August 2023. 8 Mahmood, B, ‘The time has come for a universal basic income says Andy Burnham’ , https://leftfootforward.org/2022/05/the-time-has-come-for-a-univrsal-basic-income-says-andy-burnham/. Consulted 9 August 2023. 9 Ali Hussen, D. ‘Universal basic income of £1600 a month to be trialled in two places in England’ , The Guardian : https://www.theguardian.com/society/2023/jun/04/universal-basic-income-of-£1600-to-be-trialled-in-two- places-in-England/. Consulted 10 August 2023. 10 Sheffey, A. ‘Elon Musk says we need universal income because ‘in the future, physical work will be a choice’ , Business Insider , at https://www.businessinsider.com/elon-musk-universal-basic-income-physical-work-choice-2021- 8?r=US&IR=T. Consulted 10 August 2023.
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