A Progressive Rejection of Universal Basic Income

Universal Basic Income (UBI) is gaining popularity in America as the next logical economic step in a post-automation world. Touted as a way to save America’s Capitalism, it ensures that people have enough money to keep consuming while raising the quality of life for our most impoverished. UBI boasts some attractive benefits for the majority of Americans, but is it worth the cost? I argue that given the present ideologies driving UBI implementing the policy will do more harm than good.

Scratching the surface

Universal Basic Income is a form of social protection that provides an amount of money to every citizen within a population. Money transfers occur periodically and without condition. The premise is that this method of wealth redistribution will alleviate many of the economic burdens facing so many American families.

There have been numerous studies on the impacts of cash-transfer programs that have shown positive results. A 2007 program by New York City’s Center for Economic Opportunity [1] demonstrated that small cash stipends reduced poverty and material hardship for recipients but saw those impacts decrease once the money was rescinded. The World Bank reports [2] that it’s a myth that our poorest squander wealth transfers on wasteful activities such as increased alcohol and cigarette consumption. These studies and more [3] are pushing UBI from a fantastical idea to a legitimate policy discussion.