Universal Basic Income (UBI)
Universal Basic Income: An Introduction to a Transformative Idea
Universal Basic Income (UBI) is a social policy concept that proposes providing all citizens with a regular, unconditional cash payment, regardless of employment status, income level, or wealth. This idea aims to alleviate poverty, reduce income inequality, and prepare societies for rapid technological advancements that could disrupt traditional labor markets. As UBI gains traction globally, it is becoming a central topic in discussions about the future of economic and social policy.
The History of UBI
The roots of UBI trace back centuries. Philosophers like Thomas More in the 16th century and Enlightenment thinkers like Thomas Paine advocated for forms of guaranteed income. Paine proposed using revenues from land taxation to support the poor, an early precursor to the UBI concept. In the 20th century, economists such as Milton Friedman introduced similar ideas, like the Negative Income Tax, as part of broader welfare reform debates.
During the 1960s and 1970s, the United States conducted experimental pilots in states like New Jersey and Iowa to explore guaranteed income’s impact on poverty and work incentives. Although results were mixed, they demonstrated UBI’s potential to simplify welfare systems.
Test Pilots: Successes and Challenges
Modern UBI test pilots have been launched in countries worldwide, providing valuable data on its feasibility and effects:
- Finland (2017-2018): A study provided 2,000 unemployed participants with €560 monthly. Results showed slight improvements in happiness and mental well-being but limited impact on employment rates.
- Kenya (Ongoing): The NGO GiveDirectly launched one of the largest UBI pilots, distributing cash payments to thousands of villagers. Early results suggest reductions in poverty and improved well-being.
- Canada (2017-2019): Ontario’s pilot was cut short due to a change in government, but participants reported better mental health and financial security.
- India and Namibia: Experiments revealed increases in school attendance, healthcare access, and entrepreneurial activity.
UBI in Politics and Global Advocacy
UBI has attracted attention across the political spectrum. Progressives view it as a tool to address inequality and automate-related job displacement, while libertarians see it as a simpler alternative to complex welfare systems. Notable supporters include tech leaders like Elon Musk and Andrew Yang, the latter promoting UBI during his 2020 U.S. presidential campaign under the term “Freedom Dividend.”
Globally, organizations such as the Basic Income Earth Network (BIEN) advocate for UBI, coordinating efforts to expand awareness and research. The COVID-19 pandemic further fueled interest, as emergency cash transfers in several countries highlighted the benefits of direct financial support.
Taxation and Funding UBI
A critical debate surrounding UBI is its funding. Proposals include increasing progressive taxation, introducing wealth taxes, or reallocating existing welfare budgets. Carbon taxes and digital taxes on large tech companies have also been suggested to fund UBI programs. Critics argue that UBI could be prohibitively expensive and lead to inflation, while proponents emphasize its potential to streamline welfare and stimulate economies.
Current Trends and News
- Scotland (2024): Plans for UBI pilots are underway, focusing on combatting poverty.
- South Korea: Some regions have implemented basic income for youth to foster entrepreneurship.
- Spain: Elements of UBI were introduced as part of pandemic relief programs, with ongoing debates about expansion.
- Technology and Automation: With advancements in AI and robotics, the discussion around UBI as a safety net for displaced workers has intensified.
A Transformative Idea for the Future
While UBI remains a divisive concept, its growing prominence signals a shift in how societies envision economic security. The movement continues to gain momentum, with advocates calling for further experimentation and governments cautiously exploring implementation. As the world grapples with inequality, automation, and globalization, UBI may redefine the relationship between citizens, work, and the state.
Techno-Feudalism and the End of Capitalism
Left-wing economist Yanis Varoufakis tells us about his (proposed) post-capitalist utopia.
By Alice Flanagan
The parallel economy you describe takes a form you call ‘corpo-syndicalist’, one marked by “markets without capitalism” and Universal Basic Income. Is UBI the way forward?
Apr 30, 2021 – The first ingredient isn’t UBI; it’s the end of tradable shares. The idea that Rupert Murdoch can buy the shares of any newspaper in the world, and effectively turn them into his own mouthpieces, is absurd.
I mean, if that was not the case, and I came to you and said, ‘Look, I have an idea. Let’s chop up into tiny little pieces the ownership rights to every company, and then let’s trade those freely and allow the very rich to buy all the corporations,’ you would think that I am mad. That I am mad and dangerous. Yet this is what we have.
So moving from the oligarchic ownership model, where you buy as many votes… and this is how you should think of shares; shares are votes! And they are the votes in the assemblies where serious decisions are made. The serious decisions are not made in the Houses of Parliament. They are not made in the Congress or the Bundestag. They are made in the boards of directors and the general assemblies of Goldman Sachs, of Volkswagen, of Google, and so on.
This is where the big decisions are being made, the decisions that determine your life, as well as life on the planet. So these are the votes that count. And to say that there is a market for votes and the rich can buy them is the end of democracy. The democracy we have is simply a piece of propaganda. We have an oligarchy with elections and the elections are bought by the oligarchy.
So the first part is ‘one person, one share, one vote.’ That’s a very radical part, but also so simple. That’s what attracts me to it, that it is such a simple idea, and it’s what we already have in the political sphere. You have one vote; you can’t sell it, you can’t rent it, you can’t buy more. You just exercise it.
THE FIRST INGREDIENT ISN’T UBI; IT’S THE END OF TRADABLE SHARES
Number two is a digital bank account that everybody has with a central bank. Because at the moment you can have a bank account at the Royal Bank of Scotland or Barclays, but you cannot have a bank account with the Bank of England. But the Royal Bank of Scotland and Barclays do have a bank account with the Bank of England, which means that when the central bank is printing money, they can’t give it to you, they give it to them. And [the commercial banks] give it to the large corporations, who take that money and go buy shares. This is what we have now!
So the first thing you do is ban the trading of shares and say one share per employee, and the second thing you do is you cut out the middleman. Suddenly everything changes. Everything.
Firstly, you will never have a bank account with Barclays. Why would you want one? Why would you need one? You wouldn’t. You would have an account with the state central bank. Digital, with a smartphone app, with a plastic card.
If that happens with everyone in Britain, with everyone in the Eurozone, and so on, everybody has one row of a spreadsheet. That’s what the central bank will be. Well, if that is the case, why can’t the Bank of England then give you £1,000? To each of you, just add them to every row. That’s UBI for you!
You see, I was never in favour of UBI when it came out. I’m old enough to have been involved in the debates over UBI in the 1980’s and I was not a supporter of the idea. I was not a supporter of it because the idea then was it would be funded by taxation. I don’t like this idea. At all.
Because if you go to a hardworking blue-collar person, and you say to them, “I’m going to tax you and give the money to someone who does nothing, or to a rich person,” they say, “What? You are going to tax me in order to give money to someone who doesn’t need it, or who doesn’t deserve it?” Then the whole thing becomes toxic.
[Instead] you say to them, ‘Look, everyone takes it, because we are on this spreadsheet, and it’s just numbers and we add it on every month.’ And to the extent that these numbers facilitate economic activity, you don’t have inflation, because there’s more stuff that has been produced.Anyone who says to me that universal basic income means people will not be motivated to work, I say, what?! Zuckerberg has billions! And he works day and night, you know? The rich never say this about their kids. They never say, ‘Oh no, he shouldn’t have a trust fund. If they aren’t starving they won’t be motivated.’ Only about the poor do they say this.
> nowthenmagazine.com/yanis-varoufakis-techno-feudalism-and-the-end-of-capitalism
Universal Basic Income: What’s in a Name?
With increasing calls for a Universal Basic Income and a rise in experiments, a variety of names have been given to or associated with the proposal, including Guaranteed Income, Freedom Dividend, and Unconditional Basic Income. This paper examines what names can be given to the proposal and pilots and whether a single name across programs is needed to develop the proposal into an implementable policy.
> basicincome.stanford.edu/universal-basic-income-whats-in-a-name
The many names of Basic Income
For such a simple idea, Basic Income has a complex web of alternative names. Here are some of the other names for Basic Income, including a quick guide to what is and what isn’t BI.
> read more
The Rich Already Have a UBI
The universal basic income — a cash payment made to every individual in the country — has been critiqued recently by some commentators. Among other things, these writers dislike the fact that a UBI would deliver individuals income in a way that is divorced from working. Such an income arrangement would, it is argued, lead to meaninglessness, social dysfunction, and resentment.
One obvious problem with this analysis is that passive income — income divorced from work — already exists. It is called capital income. It flows out to various individuals in society in the form of interest, rents, and dividends. According to Piketty, Saez, and Zucman (PSZ), around 30 percent of all the income produced in the nation is paid out as capital income.
> jacobinmag.com/rich-universal-basic-income-piketty-passive-income-capital-income
Is Universal Basic Income the Key to Happiness in Asia?
Jul 12, 2021 – A look at why unconditional income has gained popularity in South Korea and what we can learn from the largest trial in Asia to date.
> ssir.org/is_universal_basic_income_the_key_to_happiness_in_asia
UNDP calls for temporary basic income to help world’s poorest women cope with effects of COVID-19 pandemic

Photo: UNDP Bangladesh/Fahad Kaizer
Mar 4, 2021 – A temporary basic income (TBI) given specifically to hundreds of millions of women in the world’s developing countries could prevent rising poverty and widening gender inequalities during the COVID-19 pandemic, according to a new United Nations Development Programme (UNDP) report out today.
> undp.org/help-worlds-poorest-women-cope-effects-covid-19