Why the Rich Should Not Be Exempted from Universal Basic Income

One of the most critical arguments for Universal Basic Income (UBI) centers on administrative costs. The idea is to save all the money currently spent on evaluating eligibility, which can be considerable, especially when compared to simply providing a basic income to all citizens. By doing away with the complex systems of assessment, UBI aims to streamline the process and make it more accessible and efficient.

Administrative Costs and UBI

The current systems used to determine eligibility for social benefits are cumbersome and costly. They involve a team of professionals working to assess individuals and their wealth, a task that is both time-consuming and expensive. UBI, on the other hand, would simplify this process by providing a flat rate to all recipients. This approach would significantly reduce the administrative overhead, allowing for more efficient use of public funds.

For instance, the current system evaluates individuals to determine if they are too rich to receive benefits. This evaluation process is a resource-intensive effort that requires a significant amount of manpower. By contrast, a universal basic income would eliminate this need. Everyone would receive the same amount, making the process faster and less expensive.

The Design of UBI

Most models of UBI are designed as a top-up, ensuring that everyone receives at least a minimum level of income. For example, if the UBI is set at $2,000 per month, a person who earns nothing would receive the full $2,000. A part-time worker earning $1,500 would receive an additional $500 to make up the difference. A full-time worker earning $3,000 would receive nothing.

This design shows a progressive distribution of income, ensuring that those most in need receive the most support, while those who are wealthier can contribute to the economy in other ways.

The Question of Why the Rich Receive UBI

Your question about why the richest one percent would receive a portion of UBI while others would not is valid and thought-provoking. The answer is multifaceted and touches on both economic and social factors.

One potential explanation is the economic dynamics of the modern workforce. In recent years, there has been a rise in men staying at home with their parents. This phenomenon is estimated to involve around 10 million men who are voluntarily unemployed and living with their parents. This trend is likely to increase in the future.

By receiving UBI, these men can balance their household expenses without losing out on additional benefits. This arrangement allows them to remain economically active while still supporting their families, thus reducing the financial burden on their parents.

It is also important to consider the broader narrative behind UBI. The purpose of providing a universal basic income is not just to alleviate poverty but to provide financial stability and security for all citizens. This approach recognizes that the current economy may lead to increased unemployment and wage stagnation, particularly among the middle class.

By ensuring that everyone receives a basic income, UBI acts as a buffer against economic downturns. Employers can adjust wages based on the UBI received by their employees and the unemployment rate in their sector. Indeed, UBI does not solve the unemployment problem but addresses the wage problem, providing a safety net that allows individuals to meet their basic needs even if they are not fully employed.

Furthermore, UBI serves to redistribute wealth more equitably. By giving everyone the same basic income, regardless of their income level, it helps to reduce the wealth gap and promote a more level playing field.

Conclusion

In conclusion, the design of UBI prioritizes cost efficiency and simplicity, making it a more viable solution than the current complex and expensive systems of social welfare. The idea of a universal basic income is not just about providing a financial safety net; it also addresses broader economic and social issues, including wage stagnation, unemployment, and wealth inequality.

The rich may benefit from UBI in some ways, but the purpose of the program is to ensure that everyone has the basic means to live and prosper. By providing universal basic income, we move towards a more equitable and sustainable economic system.