Universal Basic Income Program and its Roles and Challenges

Universal Basic Income
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Universal Basic Income
A universal basic income is a government program where individuals above the age of eighteen receive money regularly. This program aims to reduce poverty levels and have need-based social programs that require better bureaucratic involvements. To many individuals, the program is seen as an effective way to ensure that all citizens can get the basic needs without a struggle. People can have a good standard of life since they receive regular monthly payments from the government. The universal basic income can reduce inequality, and alleviate poverty, encourages citizens to start businesses to support the revenue, and it is very efficient to administer; however, it leads to higher taxes since it is higher than the current benefits system, and it often encourages laziness among the citizens.
Hoynes, H., & Rothstein, J. (2019). Universal basic income in the United States and advanced countries. Annual Review of Economics, 11, 929-958.
The authors' purpose in this article is to discuss the importance and the role of the universal basic income among the citizens in advanced countries. They developed a framework that explains the transfer programs, which is very flexible to include most of the existing programs, including the universal basic income. The authors argue that the program would direct larger transfers of childless and non-disabled households to the program. This will also incorporate the middle-income citizens instead of the poor. An extensive universal basic income program causes a rise in transfers to a low-income family, which is very expensive.
The author provides solid theoretical arguments on the universal fundamental income roles and identifies the various challenges that face the program. The information is up to date, and reliable sources back it up, and therefore the recommendations of the authors are valid.
Banerjee, A., Niehaus, P., & Suri, T. (2019). Universal basic income in the developing world. Annual Review of Economics.
In this article, Banerjee et al. argue that developing countries should give all the citizens to survive. They focus on both positive and negative results by reflecting on the existing cash transfer programs. They further discuss what the income receivers would do with the incremental revenue and analyses if it would further unlock economic growth. If giving citizens money is a wise decision by the government. The main limitation of this research is the lack of supporting evidence. However, it is relevant to the thesis because it gives insights into the program's impact on the economy.
Martinelli, L. (2017). Assessing the Case for a Universal Basic Income in the UK. IPR Policy Brief. Institute for Policy Research, University of Bath, Bath. h...