Universal Basic Income (UBI) is a government policy where all citizens receive a fixed amount of money regularly, regardless of employment status or income. It aims to ensure a minimum standard of living, reduce poverty, and simplify welfare systems. Here are some PROS and CONS of Universal Basic Income (UBI): Must Read: 50 Latest Lecturette Topics for SSB Interview
PROS of Universal Basic Income
1. Poverty Reduction: UBI ensures a minimum income for everyone, helping to reduce poverty and inequality.
2. Freedom of Choice: People can use the money as they see fit, enabling them to pursue education, entrepreneurship, or caregiving.
3. Economic Stimulus: Increased spending power boosts consumer demand and economic growth.
4. Adaptation to Automation: As automation reduces jobs, UBI provides financial stability to those displaced.
5. Improved Mental Health: Financial security reduces stress, anxiety, and mental health issues.
CONS of Universal Basic Income
1. High Cost: Funding UBI requires substantial government expenditure, potentially leading to higher taxes or cuts in other services.
2. Disincentive to Work: Critics argue it might reduce the incentive to work, affecting productivity.
3. Inflation Risk: Increased demand could raise prices, reducing the purchasing power of the income.
4. Unfair Distribution: Providing money to everyone, regardless of need, may seem wasteful compared to targeted welfare programs.
5. Neglect of Essential Services: Resources spent on UBI could be better invested in healthcare, education, and housing. Must Read: 50 Latest Lecturette Topics for SSB Interview