6 Universal Basic Income Pros and Cons

Hello readers! It’s finally time to highlight the main pros and cons of the idea for universal basic income. Of course, there is so much more to say than just three advantages and three disadvantages, but I’ll try to keep it unbiased. We all know how important it is for a business advisor to avoid taking a side when showing her opinion. So, check out this basicincome2013.eu blog post to the end and tell me what you think! Let’s get started on the three great pros of universal basic income. Here we go.

• Basic income creates independence and promotes welfare. Let’s face it – it’s the men in most of the families who get the money, not the women. Even in the UK! That comes with a series of consequences such as more rights for the men to spread their expenses and what to do with the family budget. If you wonder how to increase the independence and welfare in some families – it would be with by the universal basic income!

• How to reduce poverty? Introducing basic income as a solution to reduce poverty is certainly an unmatched advantage. For example, in India, according to informal data, there are nearly 200 million people who are poor or very poor and do not have bank accounts. Given the universal basic income pros and cons, the government of India couldn’t be more certain that the money reaches the poor people.

• An act of fair game. Did you happen to ask yourself questions such as ‘Where does all the money that the government takes from the citizens go?’ or ‘How does a government spend the money it takes from its people?’ Well, it’s kind of unfair for the poor people to pay the same taxes, public service fees, etc. as the richer people do.

Basic income has its disadvantages that are also not to be missed. I can point out three main cons of universal basic income. They are:

• Discourages citizens to work. With improved welfare and secure monthly income, citizens will not be more motivated to work more for a higher income. There would be even more people who will rely on easy income and grant money. I cannot see any advantage or benefit in this when it comes down to laziness and the unemployment rate!

• Overtakes the idea of capitalism. Without a doubt, we live in a capitalist society which is proven to be the only self-developing governmental mechanism or ideology. It is hard to identify a dictatorship, socialist or even communist society that prospered throughout the years. Even China’s economy sees an enormous benefit after implementing the idea of capitalism. That said, the universal basic income might put a setback in the accumulation of capital, private property, and others.

• Increases bureaucracy. Can a universal basic income reduce the government budget? Undoubtedly, it could! But where exactly will these basic income transactions fit in with government revenue and expenditure? Can you imagine all the bureaucracy necessary for managing such a complex and universal system of basic income?

These are only a few of the universal basic income pros and cons that I could highlight in a single blog post. If you want to talk more about benefits, disadvantages, social movements in the UK, how to’s, and other aspects of basic income – leave me an email or come back to my blog later. I’ll keep you posted!