Universal Basic Income Explained – Free Money for Everybody? UBI

by birtanpublished on September 6, 2020

What if the state covered your cost of living would you still go to work go back to school not work at all what would you do this concept is called a universal basic income or ubi and it's nothing less than the most ambitious social policy of our times in 2017 basic

Income is gaining momentum around the world first trials are ongoing or on their way and the growing number of countries are considering ubi as an alternative to welfare how would it work and what are the key arguments

For and against right now people can't really agree what universal basic income is or should be some want to use it to eliminate welfare and Cupp bureaucracy others want it as a free extra for existing programs or even want it to be

So high that work itself becomes optional for this video we'll talk mostly about the minimum basic income enough money to be above the poverty line in the US this means about $1,000 a month or $12,000 a year

The money would not be taxed and you could do whatever you wanted with it in this scenario ubi is a way of transferring the wealth of a society while still keeping the free market in tax but if we hand out free money will

People just spend it on booze and stop working a 2013 study by the World Bank specifically examined if poor people waste their handouts on tobacco and alcohol if they receive it in the form of cash

The clear answer no they don't the opposite is true other studies have shown that the richer you are the more drugs and alcohol you consume the lazy and drunk poor person is a stereotype rather than reality

What about laziness universal basic income test runs done in Canada in the 1970s showed that around 1% of the recipients stopped working mostly to take care of their kids on average people reduce their working hours by

Less than 10% the extra time was used to achieve goals like going back to school or looking for better jobs but if laziness and drugs are not a huge deal why doesn't our current welfare state solve poverty welfare or unemployment

Programs are often come with a lot of strings attached like taking part in courses applying to a certain number of jobs a month or accepting any kind of job offer no matter if is a good fit or what it pays besides the loss of

Personal freedom these conditions are often a huge waste of time and only served to make the unemployment statistics seem less backed often your time would be much better spent looking for the right job continuing education

Or starting a business another unwanted side effect of many welfare programs is that they trap people in poverty and promote passive behavior imagine a benefit of $1,000 each month in a lot of programs if you

Earn a single dollar extra the whole thing is taken away if you take a job that's paying $1200 you might not only lose your benefits but because of your taxes and another costs like transportation you might end up having

Less money than before so if you actively try to better your situation and your total income is not improving or even a shrinking welfare can create a ceiling that traps people in poverty and rewards passive behavior a basic income

Can because and therefore getting a job and additional income would always make your financial situation better work is always rewarded instead of a ceiling it creates a floor from which people can

Lift themselves up but even if you bi is the better model is it economically feasible what about inflation well prices just rise making everything just like it was before since the money is not being

Created by magic or printers it needs to be transferred from somewhere it's more of a shift of funds than the creation of new ones hence no inflation ok but how do we pay for it there's no right answer here

Because the world is too diverse how well-off the country is what the local values are are things like high taxes or cutting the defense budget politically acceptable or not how much welfare state is already in place and is it effective

Each country has its own individual path to a ubi the easiest way to pay for a ubi is to end all welfare and use the free funds to finance it not only would this make a number of government agencies disappear which in itself saves

Money it would also eliminate a lot of bureaucracy on the other hand cutting them could leave many people worse off than before if the goal is to have a foundation for everybody there still need to be programs of some sort because

Just like countries people are not the same the second way higher taxes especially for the very wealthy in the US for example there's been a lot of economic growth but most of the benefits from it have gone to the richest few

Percent the wealth gap is rapidly widening and many argue that it might be time to distribute the spoilers more evenly to preserve the social piece there could be taxes on financial transactions capital

Land value carbon or even robots but UPI is not necessarily expensive according to a recent study a UPI of $1,000 per month in the US could actually grow the GDP by 12% over eight years because it would enable poor people to spend more

And increase overall demand what about the people who do the dirty work who will work in the fields crawl through sewers all if pianos if you don't need to for survival will people still do hard boring and unfulfilling labor you

Bi might give them enough leverage to demand better pay and working conditions a study calculated that every extra dollar going to wage earners would add about $1 21 to the national economy while every extra dollar going to

High-income Americans would add only 39 cents there would still be very rich and poor people but we could eliminate fear suffering and existential panic for a significant part of the population making poor citizens better off could be

A smart economic tactic for some this isn't enough they want a ubi large enough to live a middle-class existence if we set the financial obstacle aside this idea fundamentally challenges how our society is constructed by earning

Money you earn the possibility to take part in society this determines your status and options but it also forces many people into spending huge chunks of their time on things they don't care about

In 2016 only 33% of US employees were engaged at work 16% were actively miserable and the remaining 51% were only physically present would 67% of people stop working if they could it would be unfair to portray work as just

A chore work gives us something to do it challenges us it motivates us to improve it forces us to engage many find friends or partners at work we work for social status wealth and our place in the world we're looking for something to do with

Our lives and for many people work gives them meaning there are other concerns with ubi if all welfare programs were exchanged for one single payment this gives the government a lot of leverage individual programs are easier to attack

Or cut than a multitude or populist smite promise drastic changes to the ubi to get into power and a universal basic income doesn't tackle all problems when it comes to equality rents for example while $1,000 might be great in the

Countryside it's not a lot for expensive metropolitan areas which could lead to poor people moving outwards and the difference between rich and poor becoming even more extreme and of course for some people the concept of work

Itself not being essential for survival is appalling so is the universal basic income a good idea the honest answer is that we don't know yet there needs to be a lot more research more and bigger test runs we need to think about what kind of

Ubi we want and what we're prepared to give up to pay for it the potential is huge it might be the most promising model to sustainably eliminate poverty it might seriously reduce the amount of desperation in the world and make us all

Much less stressed out this video was made possible by a universal basic income provided by you our viewers ten thousand people around the world gift us a monthly income on patreon.com slash course cos art you enable us to pay

Salaries and buy new hardware you enable us to make more videos and you enable us to spend more time on them courtesans would truly not be what it is today without your help you help us stay independent and you give us the freedom

To go quality before quantity thank you so much

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