Income for All

In theory, a universal basic income (UBI) would be great. Under such a system, all citizens of a country are entitled to an unconditional amount of money on top of income they already generate through other means. It could spur productivity, improve health, alleviate poverty, reduce crime, raise education, and improve quality of life. It’s also especially relevant, given the reality of automation taking over more and more jobs.

UBI’s potential has prompted several nations to study and test its viability. Among the pioneers are Finland, which just started implementing a UBI program that gives 2,000 randomly selected citizens $587 tax-free per month; India, which proposed the system as a solution to job loss caused by increased automation; and Canada, which saw leaders of four political parties unanimously support the decision to establish a program that will guarantee income.

It’s all going well so far, but until the trials are able to deliver definitive results showing UBI’s effectiveness, we are left to ponder the many questions surrounding it. For instance, how much income should be distributed? Should it be limited to the minimum needed, similar to welfare state programs? Would a higher amount be more effective? Would UBI prompt people to lose their motivation to work? Is it enough of a response to address job displacement caused by automation? Can countries around the world afford it?

Bill Gates Weighs In

The urgency that most UBI advocates feel, given the current state of the economy and realities of job displacement, isn’t shared by Bill Gates. While the co-chair of the Gates Foundation isn’t exactly opposed to the concept, he doesn’t think the program is ready for public implementation just yet.