UBI - Universal Basic Income - Minimum Necessary Money

Jay Hind Dear Readers,

We are back with a very new topic. But today we are going to discuss a topic that will force you to think in Government actions for Poverty. 

Just imagine that if someone tells you that from now on the government will give you Rs1500/Month till end of the fiscal year. What will your reaction?
hmmm let me guess, you will think that this person seems to have lost his mind😕 but you will be surprised to know that this is a global economic policy that is being implemented very seriously by many countries in the world which are known as "Universal Basic Income(UBI)" Let's get some basic information with appropriate examples.

What is UBI?

"Universal Basic Income is a model for providing a sum of money to all citizen of a country or other geographical area with a given sum of money, regardless of their income, employment status".

universal basic income
Image Source:- https://www.edenias.com/universal-basic-income-current-affairs-by-eden-ias/

- The purpose of UBI is to prevent or reduce poverty and increase equality among citizens. 
Economist Suresh Tendulkar had recommended a minimum of RS 7620/year to the poor people of the country to avail the nutritional food or come out of the poverty line. After reading the definition of UBI you might think that what is the strong need the UBI in future? Why the government has to spend money after this project instead of developing rural area and Public sector? But here I give you some reason with fact and figure which will help to solve your doubts!

Why Have UBI?

⏩ Nearly 90%  of the country's workforce is in the informal sector with no minimum wages or any kind of social security. They don't know what will happen tomorrow. The survey is expected to yield crucial employment data on the informal sector, filling a vital gap in India's statics.

⏩ About 21% of India's population lives below the poverty lines. The Economic Survey estimates that if the government pay Rs 7620 to every Indian, it will cut poverty from 21% to 0.45%( This is a huge difference you can see! )

⏩ Here I personally believe that this reason is enough to solve your doubts regarding UBI, and that is "Artificial Intelligence in the Job sector"

In an interview with a guardian, Stephen Hawking warned that the latter will cause job destruction in deep into the middle classes. We can see a live example in our society.

I would like to share one of my school picnic experience. Around 6 or 7 years ago I visited Mother dairy, Mahesana Gujarat. I have still remembered that very few labour force worked there, most of work has been done by fully automation machines. 

Another example self-checkouts in malls and restaurants and malls. Normally, a person sits at the counter in supermarkets and scans the barcodes of your items but after automation, they lost jobs. 

Another strong example is self-driving cars. Tesla has already become self-driven to quite a large extent. If such cars are manufactured, then there would be no need for taxi drivers. So will you notice that in every sector, in some way or the other, there will be job losses on different levels.

Let's now understand Finland's basic income experiment. I'll share one link where you can read an experiment and result but before that let me give some basic detail about it.

Finland conducted a UBI experiment in around mid-2017. According to Kela(National social - insurance institute of Finland) selected 2000  Finns between the ages of 25 and 58, each of whom was receiving some form of unemployment benefits to receive $645/month. Read full details here https://futurism.com/what-we-can-learn-from-finlands-basic-income-experiment

Pros of UBI

➤ Currently, the NDA government provide services through various social welfare scheme but now the government wants to change their policy by giving them cash so that people can buy goods and services according to their choices.

➤ This scheme will reduce poverty what we already have seen some numbers

➤ Fighting technological unemployment 

➤ Eliminating the need for social security 

➤ This scheme will reduce the wastage of government money because its implication is very easy compared to other schemes.

Arguments against UBI

➤ UBI was proposed as a solution to job loss caused by increasing automation in the developed world but it's not a good idea for developing countries like India.

➤ People will become lazy. Personally, I don't believe because with extra money poor people can improve their living of standard and middle category people can invest and expand their business.

➤ What happen if a UBI scheme will fail?

To conclude, Universal basic income is a radical proposition. The policymakers should undertake a careful cost-benefit analysis before implementing it. 

So, this is a total explanation of Universal Basic Income. What is your suggestion that UBI is the right option to combat poverty, unemployment and other problems or Not? Give your valuable suggestion in the comment section.

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  1. This is really good information on UBI, I was not aware of it before. This could help many lower middle class families to survive in tough conditions. Thank you for this article and information. Keep writing this type of articles.

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  3. Thank you readers for your valuable time and suggestion.

  4. This is right way to reduce unemployment


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