Why Has Support for Universal Basic Income (UBI) Grown in Recent Years?

Introduction

Support for Universal Basic Income (UBI) has surged globally in recent years. The

idea of UBI is simple: every citizen receives a regular, unconditional payment from the

government (Gomboc et al., 2024). This payment is meant to cover basic living expenses,

regardless of employment status. The growth in UBI support can be attributed to several

factors. Among them are increasing economic inequality, rapid technological advancements,

and changing political and social dynamics (De Wispelaere, 2016). UBI has emerged as a

potential solution to these pressing issues. This essay explores the factors driving UBI's

growing popularity, providing detailed explanations and examples.

Economic Inequality

Economic inequality is a critical issue in today’s world. The gap between the rich and

the poor is widening. In many countries, wealth is increasingly concentrated in the hands of a

few (Hung, 2021). This disparity leaves a large portion of the population struggling to make

ends meet. Many people work long hours yet still face financial hardship. They cannot afford

basic necessities like housing, healthcare, and education (Pompeo, 2017). UBI offers a

solution to this problem by providing everyone with a financial safety net.

This financial safety net ensures that all citizens can meet their basic needs. By

distributing a basic income to everyone, UBI aims to reduce poverty. It provides a buffer

against economic shocks, such as job loss or illness (Bidadanure, 2019). This is particularly

important in times of economic uncertainty. When the economy is unstable, many people

face unemployment or reduced wages (Pratap et al., 2021). UBI ensures that even in difficult

times, everyone has some income to rely on.

inequality can lead to social unrest and political instability (Hillesund & Østby, 2022). People

who feel left behind by the economy may lose faith in the system. They may become

disillusioned with their government and leaders. UBI can help to address this discontent by

providing a more equitable distribution of wealth (Hillesund & Østby, 2022). It ensures that

everyone has a stake in the economy, reducing the likelihood of social unrest.

Technological Advancements and Automation

Technological advancements have brought many benefits to society. They have made

our lives more convenient and efficient. However, they have also led to significant

challenges, particularly in the labor market (Appio et al., 2019). Automation and artificial

intelligence (AI) are replacing human jobs at an alarming rate (Makridakis, 2017). Many jobs

that were once done by humans are now being done by machines. This trend is expected to

continue, with many more jobs at risk of being automated in the future.

The rise of automation has led to fears of widespread unemployment. Many people

worry that their jobs will be replaced by machines. This fear is particularly strong in

industries that rely heavily on manual labor. For example, jobs in manufacturing,

transportation, and retail are at high risk of automation. As more jobs are automated, the

demand for human labor decreases. This can lead to higher unemployment rates and lower

wages.

UBI offers a solution to the challenges posed by automation. By providing a basic

income to all citizens, UBI ensures that people can still meet their basic needs, even if they

lose their jobs to automation. It provides financial security in an uncertain job market. UBI

also gives people the freedom to pursue new opportunities. Without the pressure of earning a
living, individuals can explore new skills, start businesses, or engage in creative pursuits.

This flexibility is particularly important in a rapidly changing economy.

Technological advancements also have broader implications for society. As machines

take over more jobs, the nature of work is changing. Traditional notions of employment and

productivity are being challenged. UBI represents a shift towards a new economic model that

values human well-being over productivity. It acknowledges that people have value beyond

their labor and that everyone deserves a basic standard of living.

Political and Social Shifts

Recent political and social movements have also contributed to the growing support

for UBI. In many countries, there is a growing demand for policies that ensure economic

security for all citizens. People are calling for more inclusive and equitable economic

systems. They want governments to address issues like poverty, inequality, and job

insecurity. UBI fits well within this framework. It represents a shift towards more progressive

economic policies that prioritize the well-being of all citizens.

Political leaders are increasingly recognizing the potential benefits of UBI. In recent

years, several politicians and policymakers have advocated for UBI as a solution to economic

and social challenges. For example, during the 2020 U.S. presidential campaign, Andrew

Yang proposed a UBI plan called the "Freedom Dividend." His proposal gained significant

attention and brought UBI into the mainstream political discourse. Yang's campaign

highlighted the potential of UBI to address issues like poverty, automation, and economic

inequality.

UBI has also gained support from various social movements. Many activists and

advocacy groups view UBI as a tool for achieving social justice. They argue that UBI can

help to reduce poverty, promote gender equality, and empower marginalized communities.
For example, UBI can provide financial independence to women who may be dependent on

their partners for income. It can also support individuals from marginalized communities who

face barriers to employment. By providing a basic income to everyone, UBI promotes a more

inclusive and equitable society.

The COVID-19 pandemic has further highlighted the need for UBI. The pandemic has

exposed the vulnerabilities of many people in the labor market. Millions of people lost their

jobs or faced reduced hours and wages. Governments around the world implemented

emergency measures to support those affected by the economic fallout. In some cases, these

measures resembled UBI, with direct payments made to citizens. The pandemic has shown

that in times of crisis, a basic income can provide essential support to individuals and

families. This has strengthened the case for UBI as a permanent policy.

Finland’s UBI Experiment

One of the most well-known examples of UBI in practice is Finland's UBI

experiment. The Finnish government conducted a two-year experiment from 2017 to 2018.

During the experiment, 2,000 unemployed citizens received a monthly payment of €560,

regardless of whether they found work. The goal was to test whether UBI could improve

employment outcomes and overall well-being.

The results of the Finnish experiment provided valuable insights into the potential

benefits of UBI. Participants reported improved mental well-being and reduced stress levels.

They felt more secure knowing they had a guaranteed income each month. This financial

security allowed them to focus on other aspects of their lives, such as education or personal

development. Some participants used the income to start small businesses or pursue further

education. While the experiment did not significantly increase employment rates, it

demonstrated that UBI could improve quality of life.

UBI around the world. It became a reference point for discussions on UBI, showing that the

concept was not just theoretical but could be implemented in practice. Although the

experiment had its limitations, it provided valuable lessons for policymakers considering

UBI.

UBI Discussions and Trials in Australia

Australia has not yet implemented a full-scale UBI program, but there have been

significant discussions and smaller trials related to basic income. One such example is the

interest in reforming the welfare system to address job displacement due to automation.

In 2020, a report from the Australian Council of Social Service (ACOSS) highlighted

the need for a more robust social safety net, especially in light of the COVID-19 pandemic.

The report suggested that a form of basic income could be a way to protect vulnerable

populations from economic instability. Although not a full UBI, the Australian government's

temporary increase in welfare payments during the pandemic mirrored the concept of a

guaranteed income. This increase, known as the Coronavirus Supplement, provided

additional financial support to those receiving JobSeeker payments. It lifted many Australians

out of poverty during the crisis and sparked discussions about the potential benefits of a more

permanent basic income.

Furthermore, Australia's Future of Work and Workers inquiry has considered the

impacts of automation on employment. Some policymakers and academics have argued that a

UBI could be a solution to job displacement caused by technological advancements. For

example, the Australian Greens party has advocated for a form of UBI as part of their

platform, emphasizing the need to prepare for a future where traditional jobs may be less

available.
 Although Australia has yet to conduct a full UBI experiment, these discussions and

temporary measures indicate a growing interest in the concept. The positive outcomes of the

Coronavirus Supplement and the ongoing debate about the future of work suggest that UBI

could play a role in Australia’s economic and social policies in the future.

Criticisms and Challenges

Despite the growing support for UBI, it is not without its critics. Some argue that UBI

is too expensive and would require significant tax increases to fund. Critics also claim that

UBI could discourage people from working, leading to lower productivity and economic

growth. Others question whether UBI is the most effective way to address poverty and

inequality. They argue that targeted welfare programs may be more efficient and cost-

effective.

There are also challenges to implementing UBI on a large scale. Designing a UBI

program that is both financially sustainable and politically feasible is complex. It requires

careful consideration of factors such as funding, eligibility, and the impact on existing

welfare programs. Additionally, the effects of UBI on different population groups may vary.

For example, UBI may have different impacts on low-income individuals, middle-class

workers, and the wealthy. Policymakers must consider these differences when designing UBI

programs.

Conclusion

The growing support for Universal Basic Income (UBI) reflects a response to several

pressing challenges in today's world. Economic inequality, technological advancements, and

shifting political and social dynamics have all contributed to the rise of UBI as a potential

solution. Experiments like those in Finland and discussions in countries like Australia have
shown that UBI can improve well-being and provide financial security. However,

implementing UBI on a large scale remains a complex and challenging task. Despite these

challenges, the idea of UBI continues to gain traction globally. As societies grapple with the

uncertainties of the future, UBI offers a vision of a more inclusive and equitable economic

system. Whether or not UBI becomes a reality, the growing interest in the concept highlights

the need for innovative solutions to address the economic and social challenges of our time.

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