Ask people who’ve been around the block if it’s possible to get something for nothing, and almost certainly they’d say “No!” All that’s going to change, however, possibly by the end of this year, although more likely in 2025 or 2026, and everyone will be affected.
The “change” is called universal basic income (UBI), but more often just basic income. This is a program in which the government gives all citizens a regular monthly stipend without their having to do anything for it – in other words, something for nothing. These funds could be used in any way the recipient wants, and it will be given regardless of an individual’s income, age, job status or other qualifiers.
Widely Tested
Stanford Basic Income Lab reports that basic income has been tested by at least 160 cities, states, and countries around the world, approximately two-thirds of them in the US. A number of years ago, both Iran and Mongolia implemented a temporary basic income plan. Many more countries around the world have also tested the idea, including Brazil, Spain, Denmark, India, the Czech Republic, Canada, Germany, and France.
And now add England to this list. According to globalaffairs.org, a program there was launched at the end of June 2023, and 30 residents will receive about $2,013 every month for two years, irrespective of their type of work or their economic status.” Back in America, Alaska has given each of its citizens an annual check based on revenues from its oil production since 1982, and over the years these have ranged from a low of around $1,000 to a high of nearly $3,300. Although no country has officially implemented, this program the idea continues to be studied.
These and other countries hope that over the long term, basic income can help solve, or at least mitigate, some of the very complicated challenges societies are facing, such as homelessness, childhood poverty, and widespread hunger.
But even if not a total solution, it offers other important and immediate benefits. “Multiple recent studies have shown that UBI can lead to improved health outcomes and increased employment for recipients,” Global Affairs stated.
For example, a Finnish study found that people receiving basic income enjoyed better health and lower levels of stress, depression, sadness, and loneliness - all important components of happiness.
Another study, this one in California, found that full-time employment increased because basic income gave under- and unemployed people more time to search for jobs, rather than having to work at several non-satisfactory and low wage part time jobs. Separately, a study in Hudson, New York, also found that UBI “led to an increase in employment …which contradicts opponents of UBI who claim it would ‘destroy’ any incentive to work.”
Skeptics claim that UBI would encourage working-age people to leave their jobs – why work if the government is handing out money? However, a study of government tax credits that appeared in Scientific American found that this concern, too, was unwarranted. “A universal basic income would not lead to adults leaving their jobs,” it concluded.
Out Of Poverty
In 2021, many families were suffering from the financial effects of the pandemic, and in order to help ease their financial pressures, the government expanded the child tax credit, a program introduced in 1997; it also dropped the work requirement for parents.
And the results were surprising. That it eased the financial distress of millions was to be expected. But the study also showed that the expanded child tax credit offered another major benefit: It also helped lift 3.7 million children out of poverty by the end of 2021.
Soon afterward, the study came up with another surprise. In January 2022, the expanded tax credit expired, pushing 3.7 million children back into poverty. The percentage increases in poverty were higher among Hispanics and African Americans. Its conclusion: “Cash assistance could help families stay afloat.” According to Scientific American the study also showed that “Cash assistance could help millions of children achieve a brighter future.”
The Time Is Now
At first glance, child tax credits and basic income have nothing to do with each other. In reality, though, it’s a step toward UBI, and has already shown that it could ease poverty without increasing unemployment.
According to Scientific American, 37.9 million Americans were living in poverty in 2021, a number based on statistics compiled by the Census Bureau. And it believes the way to improve their lot is obvious:
“Providing a government-funded monthly payment to every individual would broadly lift them out of poverty while providing millions of children a better chance at a good education, improved health and higher future earnings. With 11.6% of the people in the U.S. living at or under the poverty line, this payment would benefit millions and save hundreds of billions of dollars by reducing the social costs of poverty.”
Some very smart people say the best solution to the challenge governments face in bringing people out of poverty is implementing UBI and they believe there is no other option.
Going forward, “There will be fewer and fewer jobs that a robot cannot do better than people,” Elon Musk said in a recent interview. “These are not things that I wish would happen, these are simply things that I think probably will happen. If my assessment is correct, then we need to say ‘What are we going to do about it?’ I think some kind of universal basic income is going to be necessary.”
The International Monetary Fund agrees, and predicted that as AI improves and becomes less expensive 40% of all jobs will become automated and eliminated. This means that the problems of unemployment, poverty, hunger, etc. could actually become worse in the relatively near future.
Some of The Street’s most influential people are urging that UBI be implemented, and in addition to Musk, they include Sam Altman, Mark Zuckerberg, Richard Branson, Mark Cuban, Bill Gates, Steve Wozniak, and others.
The This Is John Williams website noted that UBI is becoming a hot topic. In 2021, there were only 11 city-run pilot programs in America. But in 2022, this number had increased to 82 across 29 states. And in 2023, there were hundreds of them. Williams expects this number to continue increasing in 2024.
Historically, the fourth year of the presidential cycle is a good one, as the party in power tries to keep the public satisfied. This year is different. Companies are laying off massive numbers of people, many already have or are in danger of folding, and the costs of basic foods have reached unprecedented high levels. Some of these problems are exacerbated by technology, others by rising global tensions. In all of them, basic income could help people – to at least a degree. And more likely than not, at some point, governments will get the hint. Are you ready for additional monthly income?
Sources: elibrary.worldbank.gov; globalaffairs.org; scientificamerican.com; thisisjohnwilliams.com; zerohedge.com
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.
