What is Universal Basic Income?
It is a program for providing all citizens of a country or other geographic area/state with a given sum of money, regardless of their income, resources, or employment status.
The main idea behind UBI is to prevent or reduce poverty and increase equality among citizens. The essential principle behind Universal basic income is the idea that all citizens are entitled to a livable income, irrespective of the circumstances they’re born in.
UBI has the following important components:
- universality (all citizens included)
- unconditionality (no prior condition)
- Periodic (Payments at periodic regular intervals)
- Payments in cash (not food vouchers or service coupons)
Benefits of Universal Basic Income (UBI):
- Provide secured income to individuals.
- Reduce poverty and income inequality in society.
- Increase the purchasing power of every poor which will further increase aggregate demand.
- Easy to implement because no identification of the beneficiary is involved.
- Reduce the wastage of government money because its implementation is very simple.