Universal Basic Income (UBI) is when a government pays EVERYONE a basic income stipend – usually about $1,000 per month. It was favored heavily by Presidential candidate Andrew Yang.
UBI could be the answer to the threats of automation, income inequality, and unemployment. And it’s not a new idea: even Martin Luther King, Jr. floated a similar idea back in the day.
The concept of “Ujamaa,” or cooperative economics, also goes way back in African culture. The idea is that when people take care of each other financially, everyone benefits.
The big question, though: who’s going to pay for it?
Taxes on the richest Americans have gone down a LOT over the last 50 years – even more under President Trump. If America’s rich were taxed at 1950s levels, there would be plenty left over to fund UBI.
And there’s some evidence it could work.
UBI experiments around the world have shown positive results. “[T]he evidence so far,” says Vox, “suggests that getting a basic income tends to boost happiness, health, school attendance, and trust in social institutions, while reducing crime.”
The COVID-19 pandemic has encouraged some governments to give it a try, like Spain – which is undergoing the largest test so far, covering around 850,000 households. The tests so far have been small – but early signs are encouraging.