Tuesday, September 27, 2016

Universal Basic Income

It is no surprise that a universal basic income initiative is gaining traction in Finland; the country is known for being “one of the world’s best functioning welfare states.”[1] The plan would get rid of the tax-funded benefits Finnish citizens receive and instead provide each adult with a basic income of about $866.

A universal basic income receives both extensive support and doubt. Those who advocate in favor of an income guarantee cite the small town of Manitoba in Canada as a real-life, successful example of how the program can mitigate economic disparity. By providing a monthly stipend to the town’s poor residents over a four-year period, the Canadian government was able reduce doctor and hospital visits, improve mental health, and increase graduation rates.[2] And despite critic’s concerns that the program would provide incentive for people to not join the work force, there showed no signs it actually did so.  

However, Manitoba is a very small town and the experiment took place decades ago in the 1970s. Implementing a national program like this in the United States would be a tremendous project, but it’s an idea that gaining rapid popularity. The most surprising element of the rising trend, according to a Vice report, is that support for universal basic income is gaining support not only from the left, but from the right’s libertarian groups as well.[3]  Even support from the technology sector and Silicon Valley for such a plan is expanding.

It may be a while before it’s a mainstream discussion among constituents, the movement is still gaining momentum and interest. New experiments are popping up such as the San Francisco start-up My Basic Income to test whether such a program could work. The mission of the organization is to “create a world of universal prosperity and innovation, by ensuring basic income and security.” My Basic Income does this through a sweepstakes that provides the winner with a $15,000 base income to spend however they want. By doing so, they are cautiously advocating for Basic Income by testing its success. Their goal is to measure impact and gather data to understand economic freedom and economic insecurity.

Is a basic income the best method to solve economic disparity? That’s what makes new experiments like My Basic Income so important. It provides an informative and practical insight into a simple solution that can have drastic economic impact. Could it really solve the issue of economic disparity once and for all? Given the number of barriers and backlash such a program could receive in the United States, this data can be crucial to answering that question. More programs should be implemented to test the strength of a Universal Basic Income system as the trends point toward it being a mainstream topic in America politics in the next few years.





[1][1] http://reason.com/blog/2015/12/07/finland-to-test-basic-income-guarantee
[2] http://motherboard.vice.com/read/the-mincome-experiment-dauphin
[3] http://motherboard.vice.com/read/the-mincome-experiment-dauphin

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