UBI Pros
A Universal Basic Income (UBI) can become a reality, mainly due to the high level of automation that reduces the number of jobs that individuals can execute better than machines and computers. Several pros can be mentioned in relation to the reform. First and foremost, the most obvious positive impact is poverty reduction (Professor Dave Explains, 2023). A decrease in homelessness is to be expected, as well as bankruptcy due to medical bills, low health outcomes, and crime.
Another vital pro correlating with the measure is the positive change in job growth. With a basic income, people are more likely to make risky yet effective decisions that benefit them personally and strengthen the overall economy. Hence, individuals will be more inclined to invest in business ideas without fear of going broke and bankrupt (Professor Dave Explains, 2023). A similar effect is to be expected with education. Students will be motivated to pursue additional degrees because they fear entering the job market less, thereby increasing their chances of finding a higher-paying job.
Last but not least, UBI would provide support to individuals who are invisible to the social assistance system. It would minimize factors such as household composition, which is essential when deciding whom to help (Dumont, 2022) financially. For example, a family making slightly above the minimum income threshold is already not covered by social programs. Additionally, families with fewer children acquire fewer benefits. A universal basic income would reduce inequalities and improve the lives of those who cannot benefit from specific grants and programs that currently provide economic aid.
UBI Cons
One downside of the proposed system is the economic burden on the government. Needless to say, providing each individual with a basic income would entail a significant increase in taxes (Professor Dave Explains, 2023). Money that could otherwise be allocated to improve education, healthcare, and other societal areas will primarily be used to fund UBI. It can be argued that such changes would not benefit people in the workforce who would have to sustain such major expenses.
Another adverse outcome is the denial of targeted support to people on low incomes. Currently, specific government programs specialize in providing help based on specific medical conditions, needs, and disabilities (Professor Dave Explains, 2023). For example, an unemployed single mother with high health expenses due to cancer will require more resources than an individual who is employed and perfectly able to sustain themselves. As a result, it can be argued that UBI would generate greater inequality, as equity would be minimized to treat everyone equally, despite their different positions.
An additional downside is a possible disregard for democratic principles. Currently, society operates under a social contract in which, to succeed, one must contribute (Wright & Przegalińska, 2023). However, as each citizen will have an income by default, it may lead to a decrease in employment. Subsequently, democratic values will become less prominent, both because the need to contribute to society through labor has diminished and because reliance on the state has increased.
Personal Opinion
From my perspective, UBI is inevitable as the current market strives towards increased efficiency and production, which can be achieved through automation. I believe that the initiative can benefit society, and the pros are substantial enough to consider the program. Despite the high costs of implementing such changes, it is critical to consider the benefits of adopting the strategy, including drastic reductions in poverty, homelessness, and economic insecurity.
References
Dumont, D. (2022). Universal basic income as a source of inspiration for the future of Social Protection Systems? A counter-agenda. European Journal of Social Security, 24(4), 299–318.
Professor Dave Explains (2023). Universal Basic Income (UBI). YouTube.
Wright, R. E., & Przegalińska, A. (2023). Debating universal basic income: Pros, cons, and alternatives. Palgrave Macmillan.