June 10, 2024
Robert Reich who is a significant economist argued that the high cost of living, which has been escalating every day due to the economic crisis, and the increasing rate of inflation, now poses life threatening problems that can be solved by Universal Basic Income (UBI).
Providing a guaranteed minimum income is one of the central reasons why UBI is advocated for by its proponents; UBI helps in addressing poverty as well as income inequality Problems as it makes it easier for such individuals to meet some of their everyday needs like food, health care [or medical care] and education. In addition, UBI could make the current welfare system less complex by getting rid of several focused social aid programs, which aid in the reduction of the operational costs and removal of any confusion associated with means testing and qualification standards.
More Read
Critics contend that universal basic income could stoke inflationary pressures as extra funds are pumped into the economy. They equally indicated that universal basic income could distort the labor market, thereby reducing the motivation to work, which in turn affects the productivity of workers. It is in addition, certain economic experts believe that universal basic income may not work in India owing to its high costs as well as limited resources in the country.
Despite these worries, proponents of amplinitive basic income claim that it can be financed in part by levying taxes on lucrative possession as well as unearned dividends from stock profits, in addition to the highest-earning segment of the population itself. Thus, it has the potential to spur economic growth through reduced poverty levels while simultaneously promoting social equity.
