Universal basic income

Universal basic income, or UBI, is a social welfare proposal. It suggests that all members of a population receive a regular minimum income. This payment is an unconditional transfer. This means the money is given without a means test. A means test is a way to check if a person is poor enough to need help. People do not have to perform work to receive UBI. This differs from a guaranteed minimum income, or GMI. GMI is only paid to those who do not have enough income to live on.

There are different ways to categorize these payments. If the amount meets a person's basic needs, it is a full basic income. This level is usually at or above the poverty line. If the payment is less than that amount, it is a partial basic income. As of 2025, no country has implemented a full UBI system. However, Mongolia and Iran have both used partial UBI systems in the past. Some programs are similar but not unconditional. For example, child benefits provide income for guardians. Pensions provide income for retired persons.

History shows that the idea of unconditional payments is very old. In Ancient Egypt, the state owned granaries. These granaries dispensed grain to the public during hard times. In Rome, leaders gave money to common citizens. Julius Caesar gave 100 denarii to citizens in 46 BC. The emperor Trajan gave 650 denarii to citizens who applied. In 1516, Thomas More wrote about a guaranteed income in his book, Utopia. He argued that providing a livelihood would prevent people from becoming thieves.

During the 18th and 19th centuries, thinkers developed more specific ideas. Thomas Paine wrote about reforms to abolish poverty in 1797. He proposed a social insurance system funded by a 10% inheritance tax on land. He believed land value belonged to the community. Later, Henry George proposed a system based on a single tax on land and natural resources. This led to Georgism, an ideology where land rent belongs to all members of society. In the early 20th century, Bertrand Russell argued for a small income for all. He believed this income should cover basic necessities.

In the mid-20th century, the debate became more political. In the 1960s, economist Milton Friedman proposed a negative income tax, or NIT. In an NIT, citizens receive less money as they earn more. This effect eventually reverses as earnings increase. In the United States, President Lyndon B. Johnson declared a war on poverty. This led to many discussions about guaranteed income. In 1968, 1,200 economists signed a document calling for a guaranteed income for every American.

Today, UBI is discussed alongside new technologies like artificial intelligence, or AI. AI involves smart computer systems that can perform human tasks. Many people worry that automation will reduce the number of available jobs. They suggest UBI could allow everyone to benefit from a society's wealth. This could lead to a post-scarcity economy. This is an economy where goods are so abundant that they are not scarce. Proponents believe UBI provides a financial basis for people to find work that suits their strengths.

Critics of UBI raise several important concerns. Some argue that a full basic income is not financially feasible. They worry the cost would be too high for governments to pay. Others fear that UBI would lead to fewer people working. They believe people might lose the incentive to hold jobs. Additionally, some consider it socially unjust. They argue that everyone should not receive the same amount regardless of their individual needs. These debates continue to shape how modern nations think about welfare and work.