Basic Income: FAQs
Your questions answered.
I thought it was about time we had our own Frequently Asked Questions section for our Basic Income publication. And here it is:
What is Basic Income (UBI — Universal Basic Income)?
Under a Basic Income system, every resident citizen will receive a regular payment of money, sufficient to meet their essential needs. This payment will, in all other respects, be unconditional.
Does Basic Income have many benefits?
Yes. Potentially there are loads of them: Financial security for everyone, less bureaucracy, less worry and stress, better work incentives, more happiness, more freedom, more opportunity — among many other potential benefits.
How much will it be?
That will depend on the specific country in question and the specific scheme being proposed. In general, however, a Basic Income should be sufficient to cover all essentials — such as food and shelter. If it doesn’t cover all essentials, then it’s not really a true Basic Income scheme.
Is Basic Income affordable?
Yes. In a rich country, it is easily affordable. A Basic Income scheme would not require us to have any more food, housing or other real resources than we have now. It’s mainly just a question of adjusting the way the money for those resources is supplied.
And in terms of the money situation: Basic Income will be paid instead of other welfare payments and instead of a personal tax allowance — not as well as. Consequently, it isn’t anywhere near as difficult to fund as some people imagine.
Won’t it cause massive inflation?
No, it won’t. That’s just a silly internet fairy tale.
Won’t it destroy work incentives?
No, it won’t. A Basic Income will pay for essentials. For anything much more than that, people will have to work, just like they do now. And very few people are satisfied with just the essentials.
In fact, Basic Income can dramatically improve work incentives, because, unlike with means-tested welfare payments, working harder and earning more money won’t cause you to lose any of your Basic Income.
Would Basic Income replace existing welfare schemes?
It would replace many of them, but not all of them.
Most existing welfare schemes rely on means-testing. This makes them complicated and expensive and it creates a poverty trap. And means-testing can be demeaning, unfair and stressful for many claimants. Basic Income will replace most means-tested welfare payments.
Some existing welfare schemes are likely to remain, however, as some people have special needs and require extra care and support that can’t be covered by standard Basic Income payments.
Is it a left-wing idea or a right-wing idea?
Basic Income is an odd sort of policy, because it attracts a lot of support from both left and right — though not always for the same reasons.
Wouldn’t a Negative Income Tax be better?
In essence, a Negative Income Tax is a form of Basic Income. Indeed, a Basic Income system and a Negative Income Tax system can be designed to have exactly the same outcome in terms of how much disposable income each individual gets. But Basic Income is simpler to understand and easier to administrate.
Is the robot jobs apocalypse on its way?
Lots of people lose their jobs to automation, but most of them find new jobs elsewhere. There is disagreement over whether automation is likely to lead to a long-term rise in unemployment levels. If it does, Basic Income could certainly be helpful. But there are many excellent reasons to have a Basic Income system, even if the robot jobs apocalypse never occurs.
Have you got some stuff about Andrew Yang?
Is there a short video that summarises what Basic Income is all about?
How can I find out more?
I’m an economist and I’ve written a number of articles exploring many Basic Income-related issues in more detail:
Thoughts from other writers, including Scott Santens, can be found here:
And if you still have questions, please make use of the comments section and ask away!
