Unconditional basic income (BBI), or in other words, the guaranteed minimum is a social concept aimed at the payment by the state of a certain amount of money to each member of society. Every individual can get money, regardless of the level of his earnings and the need to get the job done.
There are three most commonly used methods of government support for the income of individuals and their households.
First, the government can set a guaranteed minimum - a level of income that cannot be lower and is supported by compensation. Secondly, the state provides social insurance, which is paid in case of illness, unemployment or old age on the basis of paid contributions. Thirdly, social benefits like Child benefits in the UK.
For the first time, the idea of a guaranteed minimum is found in the book "Utopia" by the English philosopher and writer Thomas More (16th century). In the 18th century, the writer-publicist Thomas Payne began to study in detail the BDB system. In his treatise "Agrarian Justice", he considered the possibility of paying taxes on land owners of the minimum income to all persons who have reached the age of 21.
In different countries, politicians, economists and sociologists are discussing different models of the guaranteed minimum. In Germany, it is proposed to monthly increase the bank account of each citizen by 1,500 euros (for an adult) and by 1,000 euros (for children). At the same time, Professor of the Vienna University of Economics Franz Hermann considers it necessary to take into account up to unconditional income and a minimum set of goods and services.
Scientists identify several main sources of money for payments:
- taxes;
- cancellation of programs that are irrelevant for basic income (unemployment benefits, minimum wages, etc.);
- environmental taxes;
- natural rent;
- open (public) state emission;
- seigniorage (income from the issue of money).
However, opinions were divided regarding the effectiveness and necessity of a basic income. Some well-known economists, such as Milton Friedman and Friedrich von Hayek, considered unconditional basic income to be the best method for overcoming poverty.
“We have to work through ideas like the total basic income to ensure everyone has the opportunity to try new ideas. Many people are hesitant to start their own business because they need to feed their families, and they do not have financial insurance in case of failure. A common basic income would provide such insurance,”says Facebook founder Mark Zuckenberg.
Others argue that WBD are dreams of rebuilding the world, which are based on the ideals of freedom and justice. However, they are too utopian. Also, opponents of road safety insist that the concept of an unconditional basic income does not exist in the modern economy and cannot be considered as a scientific concept.
BDB advantages and disadvantages
Arguments for:
- can solve the problem of poverty around the world;
- can solve the problem of technological unemployment;
- reduce the level of economic inequality;
- will reduce the crime rate;
- will reduce health care costs, because people will have more opportunities to take care of themselves;
- will reduce the cost of administering social programs, because there will be no need for checks for compliance with criteria for providing assistance;
- will give people the opportunity to do what they are interested in, and not what life circumstances require.
Arguments against:
- the system is costly;
- the flow of migrants to countries that have introduced UBI will sharply increase;
- guaranteed minimum will reduce the incentive to work, which will reduce the level of employment and productivity in society;
- a significant increase in dependence on the state;
- growing tax pressure on businesses and taxpayers;
- can stimulate people to give up low-profile and hard work, and this will entail structural problems in the labor market.
Some scientists have proposed a number of alternatives to prevent the above disadvantages. In particular, Manfred Fulzak believes that it is necessary to provide BDB not only to its citizens, but also to people in the border areas in order to minimize the costs of fighting illegal migrants.
