Universal Basic Income: Can It Work?

With the increase of workplace automation and robotics, the fear of rising unemployment has many economists and policymakers worried how a displaced labor force will survive. The response to this potential economic dilemma has been the proposal of providing income to everyone via universal basic income.
The growing use of robotics, machine learning, and automation in service and manufacturing jobs means the shrinking of the human labor force. In response to this rising concern, economists, business leaders, and policymakers have started embracing an old idealistic concept providing continuous stable income to those rendered unemployed by the latest technological phenomenon: universal basic income (UBI). However, along with the pros and cons of this idea, supporters and detractors wonder: Where will the money come from to provide financial income for everyone?
What Is Universal Basic Income?
In its simplest form, UBI is a fixed, monthly cash payment given to each adult citizen regardless of income or work status, unconditionally, to provide for basic living expenses. The funds would come from either a government or public organization regardless of other income sources individuals may have and distribute on either a weekly, monthly or yearly basis.
Some UBI proposals call for even children to receive a cash payment, while others call only for recipients over 18 years old. UBI is excluded from means testing, no requirement for anything to be performed in return, and would be a fundamental citizen’s right. Groups such as Basic Income Earth Network (BIEN) support UBI but also ‘oppose the replacement of social services or entitlements, if that replacement worsens the situation of relatively disadvantaged, vulnerable, or lower-income people.’

This post was published at FinancialSense on 07/24/2017.