Some U.K. residents would get $2,000 monthly
Some U.K. residents would get $2,000 monthly for doing nothing as part of a proposed trial programme, this is not because they are in dire straits. Could it make sense here?
It may seem like a pipe dream to get money from the government every month with no strings attached, but this could soon become a reality for 30 lucky people in the United Kingdom.
Progressive think tank Autonomy released plans to trial a universal basic income (UBI) in the U.K. in June. The goal is to fight poverty and simplify the national aid system, which the United Nations once called "cruel and inhuman."
If the study gets money, 15 people in Jarrow, which is in the northeast of England, and 15 people in East Finchley, which is in the north of London, could soon get an extra £1,600 ($1,983) every month to use as they wish.
The UBI study would last two years and cost an estimated £1.15 million ($1.46 million). It would examine how UBI affects people's physical and mental health, their job chances, and their financial security.
Will Stronge, the director of research at Autonomy, said in a news release, "Climate change and new forms of automation are going to cause a lot of economic shocks in the coming decades, so basic income is going to be a key part of making sure people have jobs in the future."
As the cost of living stays high after the COVID-19 pandemic, there has been a surge of interest in UBI worldwide, including in the U.S., where more than a dozen cities are trying similar programmes. But would UBI work in the biggest country in the world?
What is a basic income for everyone?
The International Monetary Fund says that UBI is "a way to help people with their income that is usually meant to reach all or a huge part of the population without any (or very few) conditions."
According to a study by Autonomy, UBI has five main features:
It is paid regularly, like once a month, and not as a one-time grant. It is paid in cash, which people can use as they see fit. It is delivered to each person, not to households, for example. It is paid to everyone without a means test. It is paid to everyone, regardless of whether or not they work.
It's a familiar idea to think everyone should be guaranteed an income that meets their basic needs.
In his book Utopia, published in 1516, English philosopher Thomas Moore touched on the idea of a basic income. In the 1960s, Martin Luther King Jr. called for a guaranteed income to end poverty.
Andrew Yang, a Democrat running for president in 2020, brought attention to UBI when he suggested giving every adult in the U.S. $1,000 monthly.
A national UBI would be hard to run, so states are starting with small pilot projects like the one proposed by Autonomy in the U.K.
Pros and cons of UBI
UBI has been a source of disagreement for a long time. The goal of reducing poverty and inequality is good. Still, a national UBI policy would be costly and rely on changes to the tax and social security systems, the economy, and the labour market.
Mark Zuckerberg and Elon Musk, two of the wealthiest people in America, have spoken out in favour of UBI. They both agree that it would protect people from the adverse effects of technology, robots, and artificial intelligence taking people's jobs.
Musk said at the 2017 World Government Summit that the speed of technological change was causing "a massive social challenge." And I think we will have to have some basic income for everyone in the end. I don't think we'll have any other option."
Since the pandemic caused so many economic problems that governments worldwide had to boost jobless benefits and start new programmes like giving out stimulus checks, the number of people who want UBI has only grown.
But only some people are in favour of the idea.
A Pew Research Centre poll found that at the height of the 2020 presidential race, most Americans were against the idea of a UBI for all adults.
People who did back UBI tended to be younger and primarily Black or Hispanic. Older white Americans, on the other hand, were mainly against the idea.
Hilary Clinton said in her book about running for president that she devised a plan for UBI that would have been paid for by taxes on carbon and financial transactions, but she needed help figuring out how to make the maths work.
"To give every citizen a meaningful dividend every year, you'd have to raise a lot of money," she wrote. "That would mean a lot of new taxes or taking money from other important programmes." "We thought it was interesting but impossible, so we put it away. That was the right thing to do."