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Your textbook notes a new form of policy experiment that would provide everyone with a guaranteed income called Universal Basic Income.
What is a Universal Basic Income (UBI)?
- UBI is a government scheme in which every adult citizen receives a set amount of money on a regular basis.
- A basic income system's aims are to reduce poverty and to replace existing need-based social programs that may require more bureaucratic engagement.
- The concept of universal basic income has gained traction in the United States as automation replaces labor in manufacturing and other sectors of the economy.
- A recent two-year experiment in Finland in which universal basic income essentially replaced unemployment benefits found that UBI users were no more likely than the control group to obtain new work.
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