If a country is looking to develop well then the main aim of the Government of that country should be the welfare of the citizens.
Moreover, the Government should make sure that the citizens of the country are able to manage their finances properly and hence are having the access to all the basic needs. This is where Programs like the Universal Basic Income Program come into play.
The American Government has introduced this program to improve the life of the citizens of the country and to make sure they are not deprived of any basic needs that are required to live a peaceful and happy life.
What Is The Universal Basic Income Program?
A universal basic income is a program initiated by the government where every citizen in a country will receive the same amount of money each month. This income would be given regardless of what they make, while also not being paid to those who can work and are able to work.
- The purpose of this type of income is to provide financial security and health benefits while reducing the stress that citizens have. This income could replace certain existing welfare programs in the United States like food stamps and housing subsidies.
- There are different perspectives on who exactly should receive the income, with some thinking that all citizens should get it regardless of what they make, while others think only those below a specific income should receive it.
- Most people do not consider it as fair for all people to get the money, but instead, one that gives more money to deserving people such as those with disabilities or with children.
Although there are many advantages to a UBI system, there are also disadvantages such as how much money would need to be given out and what this change might do to an individual’s motivation.
How Will The Universal Basic Income Program Work?
While this proposal may seem straightforward, the complex nature of government bureaucracy and politics makes the details of the GBI difficult. At its core, a universal basic income is a payment to all citizens within a country. But how do we pay for it? If a country runs out of money, can it print more to pay each citizen? How does this affect inflation?
Does a country have to run out of money for inflation to occur? If a universal basic income is forcibly taken from some people and given to others, why would those receiving the payments continue to produce wealth? Wouldn’t they simply wait for their government stipend instead of working?
Since this proposal is intended for use in the United States, we must also ask how different levels of government will cooperate to provide tax revenues.
Working Of Universal Basic Income Program
Universal Basic Income is a means of providing for everyone’s basic needs. If everyone had enough money to cover basic costs, like shelter, food, and healthcare, more people could be helped in the long term. Furthermore, with the Covid-19 pandemic, it has become tough for many families to get all the basic needs with such limited income.
- It would help everyone achieve a certain level of financial security. Income inequality is a pressing social issue in advanced nations like the United States and many others around the world.
- The gap between rich and poor has widened in recent years and continues to grow wider. The concept of a universal basic income (UBI) has been discussed since the 19th century, for many reasons.
- Some argue that it gives people the freedom to pursue jobs that bring about no monetary reward, like public service or artistic pursuits. Others think that it would reduce bureaucracy, as the government would not have to oversee the distribution of food stamps and other current categories of welfare programs.
Unlike other types of welfare programs which would need to be handled with strict conditions and guidelines, UBI is considered unconditional, which may lead more people to use it while they are trying to find jobs or further their education.
Eligibility Criteria for the Universal Basic Income Program
The U.S. Government has recently revised the eligibility criteria for the Universal Basic Income Program and hence they have made it easy for the residents to get their monthly income through this.
In the revised plan, it has been stated that from the age of 19 years, the citizens will start receiving the amount from this program. Moreover, the age limit up to which the income will be received has already been removed. However, for the students who are enrolled in half, a full-time course won’t be eligible for this.
Advantages And Disadvantages Of The Universal Basic Income Program
Negative or positive, the underlying principle of these ideas is that the government would be involved in payments to residents. The way some GBI proposals work is that everyone gets a check each month.
Because the idea has been getting more attention recently, there have been more advocacy statements released on it.
Those statements typically support GBI because they say it enables people to afford basic services, such as food and health care while providing an increase in income for low-wage workers.
They also argue that it can strengthen social welfare programs like Social Security and Medicare and reduce inequality.
Advantages
With the Universal Basic Income Program, many families are getting access to their basic needs and hence are able to live their life properly now. Moreover, this program has helped many families to achieve what they had always dreamt off.
- Access to schools for children: The families who have got the support of the Universal Basic Income Program are able to send their children to better schools and hence are getting better education which will help them in the future in getting better jobs and opportunities.
- Increased Jobs opportunities: With more financial stability, the families who are looking to get better job opportunities can wait for them and hence can get the work according to their choice. The program makes sure that the quality of living is improved.
- Reduced Poverty: With the Universal Basic Income Program, families are getting better facilities and hence poverty has been reduced because people are able to afford their meals and have the access to all other basic needs.
Disadvantages
With the advantages associated with a program, there are some disadvantages too which come up with it. Moreover, it is essential to look at both sides of the coin and hence the Universal Basic Income Program is also having some cons which the Government needs to take care of.
- Decrease in labor force participation rate: With the Government already giving a lump sum amount to everyone, many people who are working as laborers have started opting out of this profession, and hence the labor force participation rate has already started falling out.
- People rely mainly on the income received through the program: The families who are getting the benefit of the Universal Basic Income Program are hardly looking to work and hence they are mainly relying on the money coming through the program.
How Much Will The Government Be Spending On The Universal Basic Income Program?
The Government of the U.S. has always tried to work for the benefit of their citizens and hence in the revised plan, they have increased the amount that the citizens will be receiving. They have increased the amount for the individuals who are childless and it is now $1,502.
On the other hand, the amount for single filers has also been increased and now it is up to $11,610. Regarding all this, the Government of the U.S. is expected to have a cost of $3.6 trillion per year.
Furthermore, this cost is expected to rise even more as the plans are revised after a certain period, and hence it will be a big challenge for the Government to continue with this program.
Conclusion
The concept of a universal basic income (UBI) has been discussed since the 19th century, for many reasons. Some argue that it gives people the freedom to pursue jobs that bring about no monetary reward, like public service or artistic pursuits. Others think that it would reduce bureaucracy, as the government would not have to oversee the distribution of food stamps and other current categories of welfare programs.
Unlike other types of welfare programs which would need to be handled with strict conditions and guidelines, UBI is considered unconditional, which may lead more people to use it while they are trying to find jobs or further their education.
Furthermore, these programs have their own pros and cons which have divided the country into two halves where one side is claiming that it should always be there and the other side is claiming that these programs are just destroying the mindset of people who are willing to work.
With many people on both sides of the income debate not fully understanding this type of program, it’s important for candidates to be up-to-date on the current structure of these programs and any issues regarding them so they can advocate for what they believe is the right direction forward.
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