Universal Basic Income Analysis

Universal Basic Income
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Subject and Section
Professor’s Name
March 27, 2021
Issue: Universal Basic Income
1 Promotes equality
Pro: Amadeo, K., & Brock, T. (2020, August 19). What Is Universal Basic Income? Retrieved from TheBalance.com: /universal-basic-income-4160668
In this article, the authors discussed some of the fundamental concepts, benefits, and risks of the Universal Basic Income (UBI) approach. Accordingly, one of the main benefits of such approach is the provision of equality by addressing income and structural inequality, among others. The authors noted that there have been multiple suggestions about how UBI can help reduce income inequality, such as the provision of a “negative income tax” wherein those who are impoverished and cannot support themselves would not only get a tax exemption but would even receive a stipend from the government.
Cons: Coote, A. (2019, May 6). Universal basic income doesn’t work. Let’s boost the public realm instead. Retrieved from TheGuardian.com: /commentisfree/2019/may/06/universal-basic-income-public-realm-poverty-inequality
This article focuses on some of the disadvantages of the Universal Basic Income (UBI). In justifying the idea that the UBI is not an effective cure to ‘inequality’ relative to its costs, the authors cited a recent study that found out that the distribution of cash dividends to individuals “does not create a lasting improvement in wellbeing or equality” of individuals since this is still subject to various circumstances, factors, and conditions such as the amount of money paid, conditions of payment, and the consequences of such kinds of payments. Thus, given that the distribution of UBI is not sustainable, the author noted that such process is not cost-efficient for the overall goal of the program.
2 Effect on the Economy
Pro: Berkeley.Edu. (2020, February 25). Unboxing Universal Basic Income. Retrieved from Econreview.Berkeley.Edu: https://econreview.berkeley.edu/unboxing-universal-basic-income/#:~:text=Another%20key%20argument%20for%20UBI,the%20growth%20of%20the%20economy.&text=The%20study%20shows%20that%2C%20in,participation%2C%20prices%2C%20and%20wages.
This article has described one of the efforts and platforms that were under Andrew Yang’s platform when he ran for politics last year. This platform, according to the author, focuses on creating an ‘income floor’ wherein individuals who are living below it would be able to receive at monthly stipend to support their lives. Accordingly, one of the benefits in the economy that was cited here is found on some studies that show that the imposition of UBI could have positive financial effects on the economy, particularly due to the higher labor force participations, increase in economic output, and even an improvement in the wages of the workers, among others.
Con: Coote, A. (2019, May 6). Universal basic income doesn’t work. Let’s boost the public realm instead. Retrieved from TheGuardian.com: /commentisfree/2019/may/06/universal-basic-income-public-realm-poverty-inequality
The author of this article cited a number of studies in low-, middle-, and high-income countries that sho...