| Economy

Can UBI Revolutionize America?

There have been many studies showing the merits of a universal basic income in improving quality of life. Does it really have this quality, and if so, why is it supported and opposed by people from all sides?

By Hector Miranda Plaza, June 15, 2021

From 2017 to 2018, Finland underwent a trial of what has been, until recently, an economic concept thought of as overly idealistic: Universal Basic Income. Also known as UBI, Finland gave a monthly stipend of 1,000 Euros to 2,000 citizens chosen at random over the course of the two-year trial.

The study, despite being hamstrung by funding and pressure to expedite it, found that UBI recipients spent more time in employment, reported a greater life satisfaction, improved household finances, and lower reported rates of depression compared to those who did not receive UBI. These results are promising, especially since they debunk the common myth that such a program would encourage a “lazy work ethic”, and they aren’t isolated to this study.

Many more UBI trials have taken place around the world. In Namibia, for example, citizens in the Otjivero-Omitara area received a monthly payment of 100 Namibian dollars, around $6.75 USD, between 2008 and 2009. A follow up study revealed that, by the end of the trial, UBI recipients had seen food poverty drop by 37%, child malnutrition drop from 42% to 17%, school attendance grew by 90%, and crime fell by more than 40%.

These findings can be compared to the control group, which received no UBI, and saw less favorable outcomes as a result. There are many more studies done throughout the world which reflect the positive impact an unconditional stipend would have on all areas of life.

This isn’t a fringe policy either: support for UBI has been steadily growing, as more Americans are in favor of its implementation than against it, and public figures such as Andrew Yang, Elon Musk, and even the late Martin Luther King Jr. have all endorsed it. 

UBI hasn’t been implemented for many reasons. Besides the obvious opposition from monied interest groups, one of the largest ones is due to its many detractors on both the left and the right.

While some conservatives argue that it would be a better alternative to what they see as an easily exploitable welfare system, others argue that an unconditional stipend would remove the incentive to work and encourage a bad work ethic.

On the contrary, supporters on the left celebrate the increase of monetary support for the poor,  while others say that these proposals are little besides token concessions by the capital class to keep those below them content. Needless to say, despite growing support for it,  UBI continues to be a divisive policy; but should it be?

After a large quantity of UBI trials, such as those in Finland, Namibia, and many more, there is undeniable evidence that a guaranteed income would benefit society as a whole. There isn’t any evidence that such a program would make people more lazy or less willing to work, and the extra spendable income can be appreciated by both consumers and businesses.

However, UBI should not be seen as a permanent solution to longstanding inequalities under the current economic system, as it doesn’t change the underlying dynamics of capital ownership.

Additionally, such a program shouldn’t be mistaken as a replacement for already existing welfare programs; these are invaluable to millions of families and individuals who would otherwise be unable to support themselves with their low wages, and replacing them with a single stipend could inadvertently reduce the value of the aid they receive.

The policy of universal basic income is most unique in how it crosses partisan lines in both support and opposition. Most importantly, though, it is a policy which has been proven to work time and time again.

While it may not be as comprehensive in forming a more just society as we on the left might hope, and it isn’t the silver bullet to the welfare state that conservatives might have hoped it to be, one thing is undeniable: for better or worse, it’s a step in the right direction. A temporary step to be sure, but a step nonetheless.

Hector Miranda Plaza is an author for and co-founder of Young Patriots Magazine.