We Need To Talk About Universal Basic Income

What happens when the government throws out free money to everyone?

Globally, an economic debate is underway as heads of major economic institutions are perplexed at the broken link between wages and inflation. The world economy is growing but wages are stuck and labor productivity is lagging. One answer being offered these days is Universal Basic Income (UBI), a concept first proposed by Thomas Paine in the 1700s and currently experiencing a renaissance.

What should we think of UBI: Is it a total farce or does it possess genuine economic merit?

The first thing to point out is that the debate over UBI is a theoretical one. Despite being around for centuries, no governing body to date has implemented UBI in the sort of way that could furnish us with actionable data. There is some experimentation with UBI taking place in certain parts of the world — but, again, the limited nature of the trials means we cannot rely on these results when we consider UBI as a large scale economic solution.

The reality is, we just don’t know; this is an exercise in theory.

Universal Basic Income In A Nutshell

What is UBI?