Universal Basic Income can lead to financial flexibility.

“Across the globe, businesses are going to the wall; jobs are being lost; the self-employed are without work; mortgages are being defaulted; savings are being run through; and rent cannot be paid”. This is happening in today’s society because of the unforeseen pandemic also known as COVID-19. The pandemic has caused both school and job closures, it put a “pause” on the economy which is why people are calling for some kind of basic income to help set aside the worry of not being able to pay for necessities or having to call for unemployment.

Universal basic income can ease those worries, it is an ongoing topic that the United States is still trying to figure out whether it will solve income disparity. Well, what is Universal Basic Income? Universal Basic Income (UBI) is defined as the “idea that the government would give each person a minimum monthly sum regardless of circumstances or need”. While some argue that Universal Basic Income won’t be spent correctly, I disagree because the money can contribute to helping low-income individuals with financial flexibility.

Those who disagree with the implementation of UBI to citizens believe that those who will receive it might not use the money for the right reasons. Although this could be true for some people, I believe that it will help individuals have flexibility during difficult times. I know that a higher percentage of citizens who receive basic income will use the money for necessities than those who don’t. Many families, especially low-income families, had exacerbated hardships by the pandemic. Before the pandemic, many low-income families already lived difficult lives. For instance, Gonzalez, “a stay-at-home mother who takes online nursing courses while caring for her toddler son, the extra money has helped pay for diapers, unexpected medical bills and college textbooks”. Gonzalez was a low-income mother who was given five hundred dollars a month to use for anything she wanted and she chose to use it on essential things for her son and for her education. This demonstrates that low-income individuals just like Gonzalez who have children always put their children’s necessities first and that money disappears fast because children are expensive. This proves that not everyone utilizes the money for random things but instead things that are beneficial for them and their family. We know that UBI would be able to help low-income individuals but this brings a bigger question, will it work in the U.S.?

Some countries have already tested basic income programs and have been successful. Since 1997, in North Carolina, the Eastern Band of Cherokee Indians Casino has given about 4,000 to 6,000 a year to their tribal members. This has brought positive impacts on the individuals’ lives in many ways from obtaining an education to improve their mental health. According to economists, the impact it had was positive because a major worry is if this monthly given money increases unemployment but they say, “it doesn’t make them work less. It does lead to improved education and mental health and decreased addiction and crime”. This shows that not only did the participants benefit from receiving money that doesn’t have to be paid back but now they can receive a good education which helps form a better future and better mental health which avoids illnesses. To many, it might seem as if it’s not a big opportunity for them but a high number of low-income individuals rarely get a good education or high-end resources because they can’t afford it. Basic income helps them pay for these kinds of resources without the worry of having to take out loans from a bank because then they’d have to pay double of what they borrowed. With UBI they wouldn’t have to pay that money back which will increase the percentages of educated individuals and better mental health for all. Low-income individuals receive financial flexibility, especially during the Covid-19 crisis with stimulus checks.

Although UBI costs a lot of money, low-income individuals receive an opportunity for flexibility during difficult times like the Covid-19 crisis. Since the Covid-19 pandemic affected many countries around the world, mainly economically, the federal government decided to send some kind of basic income to taxpayers. Since the government made this positive decision there has been a growth in flexibility within citizens’ jobs. According to The Washington Post, “there is a growing recognition that cash grants do that in a way that provides maximum flexibility in a time of drastic uncertainty and rapid change.” The federal government provided about $2 trillion stimulus checks, Unbelievable right? This shows that the stimulus checks during the pandemic helped citizens support themselves, especially low-income. They have flexibility since they lost their jobs and without the financial help from the government who knows where these low-income individuals would be. Will they be Homeless? Or will they need to take out loans? That’s if they qualify for loans. Therefore, we need to know how UBI can be implemented without negatively affecting low-income in any way.

An opinion from opposing individuals is substituting programs such as unemployment, disability insurance, Social Security and Medicare, even Medicaid. I don’t agree with that idea because those who need this money the most are low-income individuals and families and they will be affected in some way. For example, “Because UBI would have a broad distribution, using it to substitute for welfare and other entitlements aimed at the poor would constitute a transfer from those in need to everyone”. This demonstrates that the money distributed to low-income people will be shared with those who are not low-income, which is not the right thing to do because then the amount of money given to each individual will decrease from what was given before. This is why UBI should be only given to low-income families since they need it the most during their lives because it makes it easier for them to find financial flexibility compared to someone wealthy.

Universal Basic Income will help everyone but the main people it will help are low-income individuals and their families. Low-income families already struggle financially but it is time to help with another resource for them to have financial flexibility. All low-income individuals want is to be able to support themselves and their families especially during unexpected times like the Covid-19 crisis. The federal government has taken small steps with basic income opportunities and has turned out to be successful. It has been tested in the U.S. now it’s time for permanent basic income opportunities for low-income individuals. Universal Basic Income can also lead to an end to global poverty because the main focus is low-income individuals. There are some drawbacks to implementing UBI, but it will always be the best solution to help low-income families.