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[lydiaastott]

The Case for a Universal Basic Income

The conversation on a Universal Basic Income is heating up. The idea that every adult citizen should be paid a minimum wage, regardless of their age or employment status, is a policy that would have huge effects on our economy, productivity, poverty and citizen happiness ratings. It is also one that has the conservative middle class terrified that they might soon be paying for the less motivated to quit work and take the easy road instead. But as countries like Finland and Holland begin trials, is it time the UK began to think about a UBI?

 A universal basic income isn’t a new idea, nor is it a very complicated one; every adult, employed or not, would receive a monthly payment roughly equivalent to national minimum wage. Put very simply, every citizen would begin each month on a level playing ground. The scheme is becoming increasingly relevant as machines replace people in mundane and often un-necessary jobs. More urgently, we face a world in which many institutions don’t have the funding required to hire enough staff.

 Automation and the idea of entirely replacing workers is a long way off, but it’s a possible future that needs to be planned for. The word ‘sinecure’ comes to mind, and roughly, it means a job given purely as an excuse to award a wage, rather than to reach an end goal or product. Some economists argue that within the near future, not everyone will need to work. But how do we justify paying people without them earning it?  Historically, unemployment has been on the rise, but steadily more and more public industries can’t afford the staff they require. So how to we keep people busy, entertained and making the most of themselves in a society where the meaningful jobs aren’t always available? Its commonly thought that people need to remain employed to be useful to society, but what if they were paid to do something else instead?

 Many people argue that a free income will stop people striving for better. Others argue UBI would only provide enough necessary to survive. It wouldn’t provide for a life anything above basic human needs. For that newer TV or faster car, working would be required to make up the shortfall, protecting the incentive to strive for better. A five year trial in the 1970’s found that hours worked only dropped by 10% in fact, and this was mostly due to young workers choosing to finish school, since they no longer had to get into work to provide for their families. REF 1.

 Anti UBI campaigners are concerned that a UBI would undermine the value of jobs. But around the world, we see organizations and institutions that are experiencing shortages in vital staff, and its clear that these vacancies do exist. It’s not because the people willing to do them aren’t available. It is because the organizations, especially those that rely on government funding, cannot afford to hire everyone they require. This comes at a huge cost to the effectiveness of our schools, hospitals, pensioner care and emergency responses.

 Volunteers and care workers are among the worst affected but the problem exists in many industries. Stay at home parents, social care, fire fighters, first aiders. Fortunately, many people within our society are willing to give their time and knowledge for free, but the system neither repays, nor respects them. Volunteer organizations can receive extremely high numbers of applicants and in some places people are even paying to volunteer. But many of these jobs are ignored and undervalued as a genuine contribution to society. The idea that someone would give something for free is a notion that doesn’t fit with the typical description of a ‘job’. The situation is so bad that as a receiver of the unemployment benefit, volunteering will interfere with your availability, thus resulting in the suspension of your benefit. It’s hardly an incentive to help out.

 We are led to believe that these workers are not essential to the running of our country. If a jobs not paid then no one in their right mind would want to do it. Volunteer work in particular is viewed as something done only by the retired, and those on community service. But all you need to do is take a look around our country and its clear how many places could benefit from the extra staff they just cannot afford to hire.

 A UBI based system would support and facilitate a society in which workers are reimbursed in a way that recognizes their contributions. With a basic guaranteed income, we would have hospitals, prisons and schools supplied with the staff they need at no extra costs. Staff that really want to be there; resulting in a higher work ethic and increased productivity. UBI would give citizens options. Part-time workers would have the security of full time staff. Parents could choose between work and childcare. Carers of the sick and elderly would be able to manage their time and return to jobs only when they can.

 Another argument for the UBI relates to interning and creative industries. An initiation period of low or no paid work to get a foothold in a career is becoming increasingly common. With recent welfare reforms, benefits won’t cover you while you put in the hard work, unpaid, no matter how respectable the job. And if you can’t rely on family support or savings to cover living expenses, it quickly forces such careers out of reach for many people. It’s a subtle form of gentrification that keeps poorer communities out of middle class jobs. A UBI would open these jobs to those who can’t support themselves during the initial years, helping people into more meaningful and lasting careers. Doing so could also create openings in lower paid jobs, driving employers to pay more. These are just a few areas in which a universal basic income could greatly benefit our society.

  Universal Basic Income is possibly the boldest idea of our time and one that will continue to be discussed. Around the world, the idea is being trialed and the results could prove too interesting ignore. However Utopian, Universal Basic Income is gaining some unlikely supporters. With some fine-tuning such as incentives to use your time wisely and further encouragement for the rich to donate unrequired money, UBI could be the answer that developed societies are looking for to level and control rising inequality. With forward thinking countries like the Netherlands and Finland beginning trials, and Switzerland even going as far as holding a referendum on the idea, is it time England began having similar discussions?

 REFERENCE 1: http://www.theatlantic.com/business/archive/2016/06/netherlands-utrecht-universal-basic-income-experiment/487883/