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'Universal Basic Income Doesn't Work'

Tuesday May 7, 2019. 05:30 AM , from Slashdot
An anonymous reader shares an opinion piece from The Guardian, written by analyst, writer and head of social policy for the New Economics Foundation, Anna Coote: A study published this week sheds doubt on ambitious claims made for universal basic income (UBI), the scheme that would give everyone regular, unconditional cash payments that are enough to live on. Its advocates claim it would help to reduce poverty, narrow inequalities and tackle the effects of automation on jobs and income. Research conducted for Public Services International, a global trade union federation, reviewed for the first time 16 practical projects that have tested different ways of distributing regular cash payments to individuals across a range of poor, middle-income and rich countries, as well as copious literature on the topic.
It could find no evidence to suggest that such a scheme could be sustained for all individuals in any country in the short, medium or longer term -- or that this approach could achieve lasting improvements in wellbeing or equality. The research confirms the importance of generous, non-stigmatizing income support, but everything turns on how much money is paid, under what conditions and with what consequences for the welfare system as a whole. The cost of a sufficient UBI scheme would be extremely high according to the International Labor Office, which estimates average costs equivalent to 20-30% of GDP in most countries. Costs can be reduced -- and have been in most trials -- by paying smaller amounts to fewer individuals. But there is no evidence to suggest that a partial or conditional UBI scheme could do anything to mitigate, let alone reverse, current trends towards worsening poverty, inequality and labor insecurity. Costs may be offset by raising taxes or shifting expenditure from other kinds of public expenditure, but either way there are huge and risky trade-offs. As this week's report observes, 'If cash payments are allowed to take precedence, there's a serious risk of crowding out efforts to build collaborative, sustainable services and infrastructure -- and setting a pattern for future development that promotes commodification rather than emancipation.' The report concludes that the money needed to pay for an adequate UBI scheme 'would be better spent on reforming social protection systems, and building more and better-quality public services.'

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