Universal basic income

coins (one per inhabitant) were dumped on the Bundesplatz in Bern to support the 2016 Swiss referendum for a basic income (which was rejected 77% – 23%). Universal basic income (UBI) is a social welfare proposal in which all members of a given population regularly receive a minimum income in the form of an unconditional transfer payment, i.e., without a means test or need to perform work. In contrast, a guaranteed minimum income (GMI) is paid only to those who do not already receive an income that is enough to live on. A UBI would be received independently of any other income. If the level is sufficient to meet a person's basic needs (i.e., at or above the poverty line), it is considered a full basic income; if it is less than that amount, it is called a partial basic income. As of 2026, no country has implemented a full UBI system, but two countries—Mongolia and Iran—have or had a partial UBI, Mongolia from 2010 to 2012, and Iran still to this day. There have been numerous pilot projects, and the idea is discussed in many countries. Some have labelled UBI as utopian due to its historical origin. There are several welfare arrangements that can be considered similar to basic income, although they are not unconditional. Many countries have a system of child benefit, which is essentially a basic income for guardians of children.…

coins (one per inhabitant) were dumped on the Bundesplatz in Bern to support the 2016 Swiss referendum for a basic income (which was rejected 77% – 23%).]] Universal basic income (UBI) is a social welfare proposal in which all members of a given population regularly receive a minimum income in the form of an unconditional transfer payment, i.e., without a means test or need to perform work. In contrast, a guaranteed minimum income (GMI) is paid only to those who do not already receive an income that is enough to live on. A UBI would be received independently of any other income. If the level is sufficient to meet a person's basic needs (i.e., at or above the poverty line), it is considered a full basic income; if it is less than that amount, it is called a partial basic income. As of 2026, no country has implemented a full UBI system, but two countries—Mongolia and Iran—have or had a partial UBI, Mongolia from 2010 to 2012, and Iran still to this day. There have been numerous pilot projects, and the idea is discussed in many countries. Some have labelled UBI as utopian due to its historical origin. There are several welfare arrangements that can be considered similar to basic income, although they are not unconditional. Many countries have a system of child benefit, which is essentially a basic income for guardians of children. A pension may be a basic income for retired persons. There are also quasi-basic income programs that are limited to certain population groups or time periods, like Bolsa Familia in Brazil, which is concentrated on the poor, or the Thamarat Program in Sudan, which was introduced by the transitional government to ease the effects of the economic crisis inherited from the Bashir regime. Likewise, the economic impact of the COVID-19 pandemic prompted some countries to send direct payments to its citizens. The Alaska Permanent Fund is a fund for all residents of the U.S. state of Alaska which averages $1,600 annually (in 2019 currency), and is sometimes described as the only example of a real basic income in practice. A negative income tax (NIT) can be viewed as a basic income for certain income groups in which citizens receive less and less money until this effect is reversed the more a person earns. Critics claim that a basic income at an appropriate level for all citizens is not financially feasible, fear that the introduction of a basic income would lead to fewer people working, and consider it socially unjust that everyone should receive the same amount of money regardless of their individual needs. Proponents say it is indeed financeable, arguing that such a system, instead of many individual means-tested social benefits, would eliminate more expensive social administration and bureaucratic efforts, and expect that unattractive jobs would have to be better paid and their working conditions improved because there would have to be an incentive to do them when already receiving an income, which would increase the willingness to work. Advocates also argue that a basic income is fair because it ensures that everyone has a sufficient financial basis to build on and less financial pressure, thus allowing people to find work that suits their interests and strengths. Early examples of unconditional payments to citizens date back to antiquity, and the first proposals to introduce a regular unconditionally paid income for all citizens were developed and disseminated between the 16th and 18th centuries. After the Industrial Revolution, public awareness and support for the concept increased. At least since the mid-20th century, basic income has repeatedly been the subject of political debates. In the 21st century, several discussions are related to the debate about basic income, including those concerning the automation of large parts of the human workforce through artificial intelligence (AI), and associated questions regarding the future of the necessity of work. A key issue in these debates is whether automation and AI will significantly reduce the number of available jobs and whether a basic income could help prevent or alleviate such problems by allowing everyone to benefit from a society's wealth, as well as whether a UBI could be a stepping stone to a resource-based or post-scarcity economy. ===Late 20th century=== Milton Friedman proposed a negative income tax (NIT), which effectively sanctioned a basic income for all, in his 1962 book Capitalism and Freedom. In his 1964 State of the Union address, U.S. President Lyndon B. Johnson declared an "unconditional war on poverty," implemented in coming years with sweeping legislation. Johnson broadened the agenda to the Great Society, including education, civil rights, health care, and support for the arts. In this political climate, the idea of a guaranteed income for every American also took root. Notably, a 1968 document, signed by 1200 economists, called for a guaranteed income for every American. Four ambitious basic income experiments started on the related concept of negative income tax. President Richard Nixon explained the Family Assistance Plan's purpose as to provide both a safety net for the poor and a financial incentive for welfare recipients to work. Congress eventually approved a guaranteed minimum income for the elderly and the disabled. In the mid-1970s, the main competitor to basic income and negative income tax, the Earned income tax credit (EITC) and its advocates won over enough legislators for the US Congress to pass laws on that policy. In 1986, the Basic Income European Network (later renamed the Basic Income Earth Network (BIEN)) was founded, with academic conferences every second year. Other advocates included the green political movement, other activists, and some groups of unemployed people. In the late 20th century, discussions were held around automatization and jobless growth, the possibility of combining economic growth with ecologically sustainable development, and how to reform the welfare state bureaucracy. Basic income was interwoven in these and many other debates. During the BIEN academic conferences, scholars published papers about basic income from a wide variety of perspectives. ==Basic income vs negative income tax== The associated diagram shows a basic income/negative tax system combined with flat income tax (the same percentage in tax for every income level). Axis y is here the pre-tax salary given by the employer and y is the net income. Negative income tax For low earnings, there is no income tax in the negative income tax system. They receive money, in the form of a negative income tax, but they do not pay any tax. Then, as their labour income increases, this benefit, this money from the state, gradually decreases. That decrease is to be seen as a mechanism for the poor, instead of the poor paying tax. Basic income That is, however, not the case in the corresponding basic income system in the diagram at right. There, everyone typically pays income taxes. But on the other hand, everyone also gets the same amount of basic income. But the net income is the same But, as the orange line in the diagram shows, the net income is anyway the same. No matter how much or how little one earns, the amount of money received is the same, regardless of which of these two systems are used. Basic income and negative income tax are generally seen to be similar in economic net effects, but there are some differences: in his library]] Psychological. Philip Harvey accepts that "both systems would have the same redistributive effect and tax earned income at the same marginal rate" but does not agree that "the two systems would be perceived by taxpayers as costing the same". Tax profile. Tony Atkinson made a distinction based on whether the tax profile was flat (for basic income) or variable (for NIT). Timing. Philippe Van Parijs states that "the economic equivalence between the two programs should not hide the fact that they have different effects on recipients because of the different timing of payments: ex-ante in Basic Income, ex-post in Negative Income Tax". ===Inflation of labor and rental costs=== One of the most common arguments against UBI stems from the upward pressure on prices, in particular for labor and housing rents, which would likely cause inflation. Public policy choices such as rent controls or land value taxation would likely affect the inflationary potential of universal basic income. Ewan McGaughey, 'Will Robots Automate Your Job Away? Full Employment, Basic Income, and Economic Democracy. ' (2018) SSRN. , part 4(2). Andrew Yang, The War on Normal People, Hachette Books, 3 April 2018. David Graeber, Bullshit Jobs, Simon & Schuster, May 2018, . Bryce Covert, "What Money Can Buy: The promise of a universal basic income – and its limitations", The Nation, vol. 307, no. 6 (10 / 17 September 2018), pp. 33–35. John Lanchester, "Good New Idea: John Lanchester makes the case for Universal Basic Income" (discusses 8 books, published between 2014¹ and 2019, comprehensively advocating Universal Basic Income), London Review of Books, vol. 41, no. 14 (18 July 2019), pp. 5–8. Why we should give everyone a basic income Rutger Bregman TEDxMaastricht. TED Talk on YouTube by Rutger Bregman. Uploaded 21 October 2014.

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