“According to the advocacy group Basic Income Earth Network (BIEN), the essential principle behind basic income is the idea that all citizens are entitled to a livable income, whether or not they contribute to production and despite the particular circumstances into which they are born.”
1.Periodic: Distributed in regular payments!!
2.Cash payment: Distributed as funds (Cash payment/ Direct Money Transfer)
3.Individual: Each adult citizen receives the payment, rather than each household!!
4.Universal: All citizens receive the payment!!
5.Unconditional: Recipients are not required to work to avail this payment!
1.The group ‘Basic Income Earth Network’ believes that everyone is ENTITLED to the basic income, whether or not they contribute to production. But how fair is to demand a payment for the work that we have not done! Moreover, money doesn’t just appear out of nowhere. Net money in an economy symbolizes net production in an economy. If at all anyone is entitled to receive this money is someone who has contributed to its production. Not everyone!
2.The concept of UBI acts as disincentive to the work and fails to understand the basic human nature. One of rather laughable argument put forth by proponent of UBI is, it would promote creativity and entrepreneurship among those freed from the struggle to survive! This argument is not supported by the best available evidence of a similar concept ‘Negative Income Tax’. From 1968 to 1982, the US and Canadian governments conducted a total of five negative income tax experiments. Similar to UBI, a negative income tax guarantees a minimum income, which is lessened as earnings of individuals increase. The experiment’s planners expected that providing a minimum income will encourage more work and creativity. But the results showed the opposite. The evaluators of the experiment observed a sharp decline of weekly work hours. Also, people who were unemployed did not try very hard to get jobs as they were already receiving a regular income.
3.UBI is applicable to all the citizens including multimillionaires! How much sense does it make for developing countries to transfer such monthly income to all the citizen including the rich. Can a country like India bear a burden of one more ineffective welfare scheme when so many are already in progress!
UBI may free people from worries of survival but assuming that it will also make people creative is absurd!
Universal Basic income is not a solution to poverty either! Jobs in formal sector is a solution to poverty! Automation is not a problem, unskilled, non-upgraded workforce is a problem! Rather than distributing free money, states need to work upon capacity building. What can really work in citizens’ favor is great infrastructure, quality and accessible educational institutions, freedom of trade, thriving economy with ample jobs and not the freebies like Universal Basic Income! Universal basic income can never eradicate poverty. Without UBI, a country may have a poor population. But with UBI it will have poor and lazy population.