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What is Universal Basic Income

 Greetings, friends! Consider this- How would you feel if I tell you that the government, without any conditions, would give you 1000 rs for free ? And not just once. The government will give you 1000 rs for free every month And not just you, every citizen of the country would get 1000 rs for free every month How would this make you feel? You might think that this is sheer madness. This is not possible And that I am joking But this is an economic policy which is being seriously considered in many countries in the world today Infact, it is also being implemented in many places across the world today .

This economic policy is called Universal Basic Income Universal- that is, for all Basic Income- that is, a basic level income being given to every one for free In today's video, let us find out how a basic universal income works What are its benefits and drawbacks? What will be the consequences if it is implemented? And is it even possible to implement it? Come, let us find out First of all, the most important question- What is the point of Universal basic income?

What was the need for the government to distribute money for free to everyone? Is money now growing on trees that the government is doing this? What is the reason behind this UBI? One of the most important reason is the job losses that are happening and will happen due to automation and AI Experts believe that there will be so many job losses that not everyone will be able to secure a job in the future And the people would not be able to bear their expenses in the absence of a job So it is necessary to give them some money for free to help them afford a basic standard of living So that they are able to afford food and a house and live a good life without a job Let me give you some examples of job losses due to automation .

Today, self check out counters have been installed in the supermarkets of many developed countries Normally, a person sits at the counter in supermarkets and scans the barcodes of your items And then you pay your bill and leave But self checkout counters have been installed in many countries You can scan the barcodes on your own and leave. So, there would be no use of those employees Similarly, self checkout screens have been installed in McDonald's in many countries where you order and your food arrives. No body would stand there and take your order So, that job stands lost too Robot vacuums have also been released recently (Earlier) you employed someone at your house for cleaning.

That employment might no longer be needed after some years Self driving cars are also being manufactured today Tesla has already become self driven to quite a large extent If such cars are manufactured, then there would be no need for taxi drivers So you will notice that in every sector, in some way or the other, there will be job losses on different levels as and when technology and automation advance And this would be observed in almost every sector and that too, very rapidly in the coming future So Universal Basic Income is being talked about to compensate for all of this But talking about very recent events, ever since the corona virus crisis has unfolded, there have been so many job losses already ans so many businesses have floundered .

That the idea of UBI is being considered almost in a fast forward manner For instance, Spain has declared that it has already started the implementation of a UBI scheme under which 462 Euros will be given to every citizen, every month Basic minimum earnings for everybody so that there is nobody that is having to sleep on the street So guaranteed basic income or universal basic income?

100 percent... I think that's really important There are people in this country who would call that a nanny state, you know? And some people will call it that but I think that it will come about one day and I think that... Out of necessity? Out of necessity A lot of famous people and entrepreneurs of this world have promoted the idea of UBI For example, you just heard Richard Branson. Similarly, Elon Musk also believes that Universal Basic Income is inevitable.

They'd be here by the end of this year But preliminary results have revealed that in general, in the people who were given this basic income, improvements in health conditions and their happiness levels were observed but if we talk about the employment level, there was no improvement there That is, it did not so happen that the unemployed people began getting more job opportunities A second example is that of Ontario, Canada, where 4000 people were randomly selected between the ages of 18-64 and a basic income was provided to them This experiment began in 2017 and it was supposed to go on for three years But the government changes in July 2018 and the new government decided not to waste money on this It was a waste of money according to them and so they stopped the experiment in the middle But there were some observations of experts on the basis of the part of the experiment that was conducted Their observations was that there was considerable improvement in the healthcare cost of people .

The government saved money in healthcare because of this and the people were feeling healthier, in general A similar story happened in India The SDF Party in Sikkim said in January 2019 that they would make Sikkim the first state in India to give Universal Basic Income to its people This was their election promise for May 2019 But they lost the elections in May, 2019 and another party formed the government there So this could not become possible You could also say that Rahul Gandhi's NYAY scheme, in some sense, was akin to a basic income Albeit it was not universal and there were some conditions attached with it that only the poorest 20% of the people in India would be given a basic income .

This was the idea of Rahul Gandhi Although, selectively giving money to some people would have created new problems because one huge advantage of it being universal was that it would reduce bureaucratic oversight and corruption But if you selectively choose people to hand out income, for example, the 20% most poor, then this would be a huge disadvantage for the ones who come under 21% poor category What was proposed by Sikkim's SDF party was actually, genuinely universal that every one would be its recipient Reverting to already conducted experiments, there is an experiment that was conducted in India too in Madhya Pradesh in 2010 Around 20 villages were chosen or testing  Basic Income out of which 8 villages were given basic income and the rest of the 12 villages were kept separate and used as a control group to observe the differences in the case of an income being given and an income not being given What's surprising is that this was one of the first experiments of basic income where the results were extremely positive Results showed that the villagers spent more on their food and healthcare .

The performance of the children in school improved by 68% in the villages that were given basic income The children spent more time in schools, the savings of the families tripled The new businesses that were started in the village doubled The sanitation of the village improved Nutrition improved as well Poverty declined, Healthcare improved, schooling improved Its a miracle- so many positive effects were seen And the first negative theory that I told you about in the video earlier that the people would become lazy if they got the money This theory is disproved at least in the case  of this experiment .

The people did not become lazy and spent the money for their self improvement Sanitation, healthcare, schooling and business ideas- all improved Similar results were seen in Uganda where 535 people were selected randomly a 382 dollar grant was given to them and it was observed that that job opportunities increased, the people started their own businesses and there was a positive improvement overall A very important question is what would it cost the government to roll out a scheme like this? and where would this money come from? Calculating in a simplistic manner, then we can see how much the government will spend per person and then multiply that with the country's population For example, in the case of USA, the population of USA is around 330 million and we assume that 300 million out of them are adults and the government is going to spend 10,000 dollars per year per person So 10,000 dollars multiplied by 300 million .

The figure is calculated at 3 trillion dollars This could be the cost that the government would have to pay annually for a scheme of Universal basic income which is a huge figure The size of the entire economy of USA is 21 trillion dollars But at the same time, this is a very simplistic manner of calculation A lot of experts believe that in reality, the cost of it would be much lower than this figure because other things are not being taken into account during this calculation For example, the rich people would take the UBI but they would return that UBI through taxes The same would happen in the case of upper middle class and middle class So the people who would actually benefit from the UBI would be the poor people For example, the economist Karl Widerquist has said that if the UBI is rolled out in a manner in which every American adult would be given 12,000 dollars per year then according to him, its cost would be a mere 539 billion dollars per year that is, only 3% of the GDP as compared to the 3 trillion dollars that we arrived at by simplistic calculations .

Even then, where would the 500 billion dollars come from? People like Andrew Yang argue that wealth taxes would be imposed to tax the rich more Or a lot of welfare schemes could be done away with. Money could be diverted from elsewhere by the government and used here At present, several such experiments are being carried out during this time in many countries UK, Germany, France, Kenya, Netherlands, Finland, Sweden, Canada, USA Experiments regarding the universal basic income is ongoing in all of these countries on different scales to see how positive or how negative it will be If you ask for my opinion, I would not say much at this point of time because not many experiments have been conducted regarding this I feel that we should wait for a few more years and observe the results of these experiments on whether it creates a positive or negative effect in the society I hope you would have found this article to be informative. Share this article .


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