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Monday, December 09, 2024

SSB Lecturette | Universal Basic Income - Pros and Cons

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