The Concept of Universal Basic Income: Promise or Problem?
- Marcelo Serafim
- 1 hour ago
- 4 min read
The idea of Universal Basic Income (UBI) has gained considerable attention in recent years as societies struggle with unemployment, automation, and economic inequality. UBI is a policy proposal in which all citizens receive a fixed, unconditional amount of money from the government, regardless of their employment status or wealth. The central goal is to guarantee a minimum standard of living for everyone, ensuring that no one falls below the poverty line.
Proponents of UBI argue that it could be a revolutionary step toward reducing poverty and simplifying welfare systems. Unlike traditional welfare programs, which often require means testing and bureaucracy, UBI provides direct cash payments to all individuals. This simplicity not only cuts administrative costs but also ensures that everyone receives support without stigma or discrimination.
Another major argument in favor of UBI is its potential to adapt to a rapidly changing job market. With automation and artificial intelligence replacing many manual and even intellectual jobs, a universal income could provide financial stability to those displaced by technological progress. It could give people the freedom to pursue education, creative work, or entrepreneurship without the constant fear of unemployment.
UBI could also have psychological and social benefits. Studies from pilot programs in countries such as Finland and Canada have shown that recipients of basic income often report lower stress levels, improved mental health, and a greater sense of purpose. The security of knowing that one’s basic needs are met can empower people to make better life choices and participate more actively in their communities.
However, critics of UBI raise serious concerns about its feasibility and potential side
effects. One of the most common objections is cost. Funding a program that provides money to every citizen, regardless of income, would require massive government budgets. Opponents argue that this could lead to higher taxes, inflation, or the reduction of other essential public services such as healthcare and education.
Funding Universal Basic Income (UBI) would require a mix of financial strategies, as no single source could cover its massive cost. Governments could raise funds through progressive taxation, such as higher taxes on the wealthy, corporations, or automation technologies, and by implementing carbon or pollution taxes that both generate revenue and promote sustainability. Another option is to reallocate existing welfare budgets, simplifying bureaucratic systems while maintaining basic support, or to increase consumption taxes like VAT, though this risks affecting lower-income households more heavily. Some nations could use sovereign wealth funds—like Alaska’s oil-funded dividend—or even explore innovative sources such as taxing digital data profits or using central bank-issued “helicopter money.” In practice, a successful UBI system would likely depend on a combination of these methods, carefully designed to ensure economic balance, social fairness, and long-term sustainability.
Another issue involves the possible disincentive to work. Some critics claim that if people receive money without needing to work, they might lose motivation, leading to a decrease in productivity. Others counter this by noting that most people seek purpose and social engagement through work, and that UBI would not eliminate the desire to contribute—it would simply provide more freedom to choose meaningful employment.
There are also concerns about economic inequality. Ironically, a universal income could widen the gap between rich and poor if it replaces targeted welfare programs that provide greater support to those in need. If not carefully designed, UBI might give unnecessary money to the wealthy while offering too little to those who depend on public assistance.
Politically, UBI has attracted support from both left- and right-wing thinkers, though for different reasons. Progressive groups see it as a tool for social justice and poverty reduction, while some conservatives view it as a way to simplify bureaucracy and reduce government intervention. This diversity of views shows how flexible the concept is, but also how difficult it is to reach a consensus on its implementation.
The debate over universal basic income is ultimately a debate about human dignity, fairness, and the role of the state in ensuring economic security. It raises fundamental questions about what kind of society we want to build in the future—one that guarantees survival or one that rewards effort alone.
Whether UBI becomes a global reality remains uncertain. Pilot programs continue to test its effects, but results vary depending on local economies, cultural values, and political will. What is clear, however, is that universal basic income challenges traditional ideas of work, value, and justice—making it one of the most important social debates of the 21st century.
Comprehension Questions
What is the main goal of a Universal Basic Income (UBI)?
How might UBI help people affected by automation and artificial intelligence?
What are the psychological benefits reported in UBI pilot programs?
What are the main criticisms of implementing UBI?
Why do both left- and right-wing groups find reasons to support UBI?
Vocabulary Section
Word | Meaning |
Feasibility | The practicality or possibility of being achieved. |
Bureaucracy | Complex administrative procedures or systems, often involving many officials. |
Disincentive | Something that discourages or prevents someone from doing something. |
Pilot program | A small-scale, preliminary study or experiment to evaluate feasibility or outcomes. |
Automation | The use of technology to perform tasks without human labor. |
Stigma | A mark of shame or disapproval attached to something or someone. |
Subsidy | Financial assistance provided by the government to support a specific activity or group. |
Consensus | General agreement among a group of people. |
Implementation | The process of putting a plan or policy into effect. |
Dignity | The state or quality of being worthy of honor or respect. |
Phrasal Verb: “Carry out”
Meaning:To perform, execute, or complete a task, experiment, or plan.
Examples:
The government carried out a pilot program to test UBI.
Researchers carried out several studies on the economic impact of basic income.
American Idiom: “Make ends meet”
Meaning:To earn just enough money to pay for basic living expenses.
Example:Many people struggle to make ends meet, and UBI could help provide financial stability.
English Grammar Tip: The Use of “Whether” vs. “If”
Explanation:Both whether and if can introduce conditional or indirect questions, but whether is preferred when presenting alternatives or uncertainty.
Examples:
✅ We don’t know whether UBI will be successful.
✅ I wonder whether people would stop working if they received a basic income.
❌ I wonder if or not UBI is possible. (should be whether or not)
Listening
Homework Proposal
Task:Write a 250-word essay expressing your personal opinion about Universal Basic Income.
Explain whether you agree or disagree with the idea.
Discuss two benefits and two drawbacks you find most significant.
Use at least three new vocabulary words and one phrasal verb from this lesson.