Universal Basic Income: A Problem or a Solution?

Author(s): Khujan Singh and Pooja Kataria

Abstract:

Do free money to everyone is all-in-one solution for all the social evils? In recent years, Universal basic income has been discussed enormously as a tool to wipe out poverty, gender inequality and economic injustice. The main purpose of this paper is to examine the viability and potentiality of this idea by reviewing various arguments in its defense and opposition available in the literature. After the review this study found that universal basic income is much better welfare program than the existing programs as it is an optimal answer to the imperfections existed in current welfare programs like misallocation of resources, huge cost involved in these programs etc. Also, it will provide financial independence and freedom of choice to the recipients. Along with the support there are some objections to the proposal, one of the main concerns is that universal basic income will discourage the recipients to do work and make them lazy, but the literature does not support this argument. These arguments are made on the basis of short-term pilot studies carried out all around the globe, the long run effect of the scheme can be different so, there is a need for a long-lasting study in future to depict the clear picture of the idea.

Keywords: UBI, poverty, gender equality, labor supply, India

Pages: 09-15      |       67 View       |       3 Download