Can Universal Basic Income help reduce the unemployment rate and increase opportunities for the less fortunate?
For a long time, I had researched this topic. I spent hours learning by reading books and asking questions to fellow classmates. In order to provide subsequent answers to this question and educate my audience of five people, I compiled findings from different places (online, in person research.) Through the various findings, I was able to learn and teach the importance of Universal Basic Income and present the different effects produced on the various economic classes.
Take a seat and let me help you understand by doing a summary the basics of UBI.
Nearly a century after the great depression, citizens from different parts of the United states are facing extreme living conditions due to the inability of receiving adequate income. With poverty being rampant among the population, the US government partakes in endeavors to control social cases such as homelessness and unemployment rate. Thus, this project will examine the correlation, both direct and indirect, between the implementations of UBI programs and the rates of poverty.
Universal Basic Income (UBI) is a grant offered monthly at a sufficiently high level in order to enable a life that is free from financial insecurity.
It is a policy at the root of many debates on reducing poverty and enabling sustainable welfare. Many researchers believe UBI is a part of the future collective. However, over the past few decades, its role in ameliorating the rates of homelessness, and unemployment has been overlooked. Although in the past, in certain regions of the United States, the government attempted to initiate programs to provide continuous monetary support to the citizens, it has only been a success in Alaska in the forms of the Alaska Permanent Fund Dividend (PFD), where the native seniors, who received additional sources of UBI had seen a decline in poverty rates (Garcia, Moore 2012). Meanwhile, during the COVID-19 pandemic, many people and households lost their source of incomes and struggled to stay afloat amidst the crisis. To remediate the problem, the American government provided monetary support of $1,200 through stimulus checks in April 2020 and later, $1400 in March 2021.
Social issues are multidimensional. Disabled who suffer from a lack of economic security are more affected by the Universal Basic income and the inability to receive opportunities to engage and be an active part of the community. Additionally, given that poverty engenders many societal crises, we see it play out through resources, policies, infrastructures that are at the disposal of the working and the lower classes. It is possible that UBI will integrate an eco-friendlier framework for the working and lower classes through the redistribution and accessibility of resources. Although some conservatives do not support the idea, the UBI has revealed itself more pros than cons when entertaining the working class. Aside from the political and moral considerations for the UBI, it increases fairness in society and consecutively creates a safe space for men and women battling domestic abuse situations to leave the relationship without fear of material destitution. It brings access to education and training purposes as well. The working class is more flexible to take on risks that could not have been possible otherwise. Furthermore, the pregnant woman can take time off and the old man feels more comfortable retiring. All of these examples represent a chance given to the working class in order to continue living a normal life.
Low families result in minimum wage employment or unemployment most of the time, this demonstrates the practicability of UBI and how favorable it turns out to be for the crucial financial difficulties that one must encounter. Although there is no certitude to UBI as a long term game plan, recent events show how beneficial its implementation would be for reducing the poverty rate amongst marginalized groups. While this initiative greatly impacts major social issues such as homelessness and unemployment, it is imperative to highlight that the extra income would certainly help a plethora of American households throughout the country. As a result of implementing and maintaining a UBI program, the lives of millions of citizens are improving.
To further understand UBI, I was able to gather participants through an app called reddit in order to gain information about the main differences in their lives pre-Covid 19 and post covid-19. Twenty five participated by responding to the quick survey that determined if they were eligible or not. The criteria were that they had to be at least the age of 18, they had to be citizens or residents of chicago and california and fluent in english. The participants were given a questionnaire and a brief document explaining the purpose.
Independent Variables
Unemployment pre and post covid-19 in Chicago and California will be utilized in order to see its effect on the necessity for UBI programs.
Effects of design on study
Two variables manipulated
(Rise in poverty) x (age) + (income
Dependent variables
Perception of the necessity of UBI programs to reduce poverty will be based on the age and income of the participants who live in Chicago and California (pre COVID) & in California (post covid-19).
Sample:
25 participants were gathered using a survey.
Qualifications:
18+, US citizens and/or residents (green card holder) living in California and Chicago and fluent in English
Plan of Analysis:
The 25 participants received a Starbucks gift card and an AMC gift card and a statistical analysis of whether the UBI implementation is a making a huge a difference or not
Expected results.
Rise in poverty
Poverty increased after Covid-19 but the use of UBI programs considerably has helped young adults much between the ages of 18 to 23 with necessities such as clothing and food as they are battling unemployment and living with roommates/parents. However, from the ages of 24+ it does not make much of a difference
Age and Income
Adults from the age of 24+ are attributed more expenses and responsibilities (such as families, children, rent, food etc..) more than young adults from the ages of 18 to 23
Others/overall
Research question will be supported. People between 18 to 23 are less poor, meanwhile people for the age bracket of 24+ are stagnant within this economy and inflation.
Questions asked by the audience such as
- Do you believe that something bigger than the UBI should be researched and implemented?
- What if they were to offer money to all and not base it on qualifications, would it be fair to all?
- Why is it hard for the government to support its citizens?
- Why are there so many qualifications for UBI if we are all suffering from poverty and unemployment?
brought a different perspective and encouraged analyzing as a group the importance, the pros and the cons of Universal basic income, as well as the next steps towards improving our quality of life and a more proactive future for our families. It certainly was different than being a student myself but as a teacher for that day, I had the pleasure of sharing my expertise and truly guide people towards understanding it themselves.
If you would like to learn more about UBI as well, feel free to share comments or ask questions down below!
Citations
- Hamilton, & Martin-West, S. (2019). Universal basic income, poverty, and social justice: a moral and economic imperative for social workers. Social Work, 64(4), 321–328. https://doi.org/10.1093/sw/swz028
2. Berman. (2018). Resource rents, universal basic income, and poverty among Alaska’s Indigenous peoples. World Development, 106, 161–172. https://doi.org/10.1016/j.worlddev.2018.01.014
3. Gentilini, Grosh, M., Rigolini, J., & Yemtsov, R. (2019). Exploring Universal Basic Income: A Guide to Navigating Concepts, Evidence, and Practices. World Bank Publications. https://doi.org/10.1596/978-1-4648-1458-7
4. Mukbaniani, Nana, “Essays on Universal Basic Income” (2021). CUNY Academic Works.
https://academicworks.cuny.edu/gc_etds/4321
