A growing number of people are considering Universal Basic Income (UBI) as a potential strategy to reduce poverty and advance societal welfare. No matter their job situation, all citizens should be given a guaranteed income in order to ensure a minimal standard of living. There are worries that UBI might not accomplish its original purpose and might even make poverty worse. We will examine both the pro and con sides of the claim that a UBI worsens poverty in this piece.
UBI proponents contend that it will offer a safety net for people who are having financial difficulties, especially those who are unable to find regular work. By offering a minimum income that would enable people to meet their basic requirements, including housing, food, and healthcare, UBI could contribute to the reduction of poverty.
This would lessen the possibility of slipping into poverty as a result of unforeseen events like job loss, sickness, or disability. UBI would also give people the financial security they need to invest in their education, skills, and business endeavors, boosting their potential for long-term earnings and lowering their dependence on social welfare programs.
On the other hand, UBI detractors contend that it might actually make destitution worse. The first point is that the cost of implementing and maintaining UBI would be excessive and outweigh any advantages. Some claim that UBI may also cause inflation because of higher prices brought on by a rise in demand for products and services. As a consequence, the UBI’s purchasing power would decline, ultimately leading to a rise in poverty.
Another argument against UBI is that it might discourage employment, which would result in lower productivity and slower economic development. People may be less motivated to work if a basic income is provided, especially if the UBI is established at a level that allows for a comfortable standard of living. This might result in a decline in the labor force, which would have a negative effect on economic development and raise poverty levels.
Others contend that UBI might actually make economic inequality worse. UBI is meant to give every citizen a basic income, but those who are already affluent might not need the money and instead decide to put it toward their savings or non-productive investments like real estate. As a result, money may become concentrated among the wealthy, leaving the poor struggling to survive. UBI may also result in a cutback in social assistance programs, which would be detrimental to those who depend on them for support.
In conclusion, there are worries that UBI might actually make poverty worse even though it has the ability to reduce it and advance social welfare. UBI proponents contend that by setting a minimum income, it could act as a safety blanket for people who are having financial difficulties and could lessen poverty.
Critics contend that UBI might be too expensive, cause inflation, and disincentivize work, all of which would have a negative effect on economic development. Furthermore, by concentrating money among the wealthy and cutting social welfare programs, UBI might actually make income inequality worse. The success of UBI in eradicating poverty will ultimately rely on how it is developed and implemented, as well as the larger economic and political environment in which it is implemented.
