Universal Basic Income
Loading...Providing financial footing to citizens of your ecosystem
Ongoing source of funds Citizen Registry
INVENTED BY THOMAS PAINE
Universal Basic Income is a social welfare program where all citizens receive a regular, unconditional sum of money from the government, regardless of their income, employment status, or wealth. The primary goal is to reduce poverty and inequality, provide financial security, and support economic stability by ensuring that everyone’s basic needs are met.
Universal Basic Income should be considered by policymakers seeking to address economic inequality, reduce poverty, and provide a safety net for all citizens, especially in economies facing job automation, unemployment, or underemployment. It can also benefit individuals in precarious employment situations, ensuring everyone has a basic level of financial security regardless of their work status.
Finland conducted a two-year experiment providing 2,000 unemployed individuals with a monthly payment of €560, unconditionally, to study the effects on employment and well-being.
Ontario launched a pilot program offering a basic income to 4,000 low-income individuals aimed at understanding the impact on health, education, and employment.
Stockton’s SEED program provided 125 residents with $500 per month for two years, with results showing increased financial stability, improved mental health, and higher fulltime employment rates.
In game theory, UBI can be viewed as a mechanism to shift the Nash equilibrium in a society. Without UBI, individuals might compete intensely for limited resources, often leading to suboptimal outcomes like poverty and inequality. UBI aims to change this dynamic by ensuring a basic level of resources for everyone, potentially leading to more cooperative behaviors and reducing the competition for survival.
In a UBI, the assurance of a basic income reduces the desperation that drives individuals to accept poor working conditions or exploitative wages. This could result in a new equilibrium where employers must offer better wages and working conditions to attract and retain employees, as workers are not forced to take any job out of necessity. This change can lead to a more balanced labor market, where power is more evenly distributed between employers and employees.
UBI can impact social cooperation and trust. In game theory, trust and cooperation are crucial for achieving optimal outcomes in repeated interactions. By providing a financial safety net, UBI may reduce the economic stress that often drives short-term, self-interested behaviors, encouraging long-term cooperative strategies instead. As individuals feel more secure, they might be more willing to invest in education, entrepreneurship, and community engagement, fostering a more inclusive and resilient economy.