UBI is Universal Basic Income whose premise is to make life easier for people in need and encourage greater economic activity by giving monthly payments. Governments started to consider UBI to combat poverty even before the COVID-19 pandemic which has destroyed the economy in shambles.
The idea of UBI is to combat poverty and put an end to the economic prospects that have been around for decades. UBI relies heavily on government budgets or direct funding to operate easily. With the COVID-19 wreaking havoc on economies around the world, some groups are rekindling the idea of UBI.
UBI operates by giving people a regular stipend that will meet their basic needs to sustain life. It is up to the person if they want to spend money on resources or search for better employment options. They are free to spend their money. However, a question comes for what is the necessary amount to be given to people to sustain life. There have been studies with the existing data and keeping the distinction between basic income and universal basic income in mind, 48 basic income programs were mapped. They demonstrated multiple features of UBI and are regularly cited in basic income policy.
The biggest difficulty to keep the program going is securing the adequate funding. There are too many mouths to feed with very little resources. Ontario’s three-year worth of projects were prematurely cancelled in 2018 and Finland’s programs are still TBD.
Take a look at the following infographic for more information.
Infographic by: visualcapitlist