The Call For Universal Basic Income

By Jonathan McCain

According to the United States Census, about thirty eight million people live in poverty. Some studies suggest that twenty-one percent of African-American children and twenty percent of Latino children live in poverty (Parrot, 2022). When considering the fact that only about ten percent of white children are living in poverty, the racial disparity is glaring. Twelve million U.S Citizens live in deep poverty, meaning that there are households that are living (if one could call it that) on only two dollars a day (Parrott,2022: UCDavis, 2023). Despite these alarming statistics, poverty has actually fallen by almost 30% between 1970 and 2017(some studies suggest this number could be as high as 47%) ( Parrott, 2023). 

We all know that poverty is associated with a wide range of adverse impacts from decreasing academic performance, contributing to worse health outcomes, producing less socially productive adults, etc (Parrott, 2023). Yet, the United States through policy action has been able to lift individuals out of poverty to negate these adverse effects. For example, studies have shown when elementary and middle school students receive access to free lunch, academic achievement increases (Parrott, 2023). This positive benefit was seen outside the classroom when children whose families had access to the SNAP program (commonly known as Food Stamps) were found to have better health outcomes and be more economically self-sufficient as adults (Parrott, 2023). These gains have been made through the use of government programs such as Social Security, the Earned Tax Credit, Housing Vouchers, etc (Parrot, 2023; Fischer, 2019). Studies suggest that if changes are made to current policies, the United States would be able to achieve the goal of lifting more people out of poverty (Parrot, 2023; Neuberger, 2021). While both policy researchers and policy makers seek to make improvements to the current mechanisms of economic redistribution, perhaps the time has come to try a new approach. 

The United States is besought by a wide range of problems both internal and external. Numerous studies have been conducted concerning the systemic poverty and inequalities in our social systems (Hasdell,2020). Current trends such as the proliferation of Artificial Intelligence, the increase in automation, and the shift of the United States economy from manufacturing to a service-based economy suggests that these inequalities will only worsen (Hasdell, 2020). How can we erase educational inequities when hunger pangs are interfering with students’ ability to learn? How can we have social cohesion when one group seems to struggle while another has lavish lifestyles? We must establish basic economic security for all citizens to have success in addressing other problems.  Basic economic security rooted in access to nutritious food, shelter, medical care is the foundation to equal opportunity.

How? One policy alternative is Universal Basic Income. Universal Basic Income can be defined by universal (everyone receives it), unconditional (it is received solely on the basis of citizenship) periodic cash transfers to individuals (Hasdell, 2020). Another name for Universal Basic Income is social dividend or citizen’s income. The United States has been able to reduce poverty through the use of means-tested government assistance programs. However, even these systems of economic redistribution fall short of reaching every person in poverty (Parrott, 2023). Some poverty reduction programs even have work-requirements that could prevent the disabled or caregivers from accessing funds (Parrot, 2023; Hasdell 2020).  In layman's terms, Universal Basic Income, or UBI, ensures that everyone gets something.

At first glance, what I am suggesting may seem radical. The call to UBI is not even a revolutionary idea. We already have a plethora of social transfer programs from food to housing to healthcare. Some would even argue that our public education system, even for all its faults, should be considered a social transfer program. What if the majority of our social transfer programs were open to all citizens with no conditions i.e. work requirements? In fact, there are few “gold standard” reviews that would indicate the success of such a program on a national level. While research is starting to be conducted on the impacts of UBI, implications about this policy action are synthesized from social transfer programs that do not meet the criteria of UBI programs-unconditional, universal, periodic, cash transfers to individuals (Hasdell, 2023). 

The pandemic brought about the closest the United States has come to a “UBI-esque” program; Economic Impact Payments. Due to the necessity of quarantining, both employers and employees found themselves without their usual stream(s) of income. Checks were mailed out, utilizing data from the Internal Revenue Service (IRS), to supplement incomes (Parrot, 2023). This action during the pandemic, along with other policy actions such as increased assistance to those at risk for eviction, expansion of medical insurance, and increased investment in food services to low income children contributed to an estimated ten million people being lifted out of poverty, in addition to preventing the worst impacts of the economic shutdown(s) (Parrot, 2023). 

Imagine our society if this was the norm, pandemic or not. A society where the most economically vulnerable are able to access assistance. What would America look like? I am not calling for an end to our capitalistic impulses (though some would say I should). The call to UBI is not even a revolutionary idea. We already have a plethora of social transfer programs from food to housing to healthcare. Some would even argue that our public education system, even for all its faults, should be considered a social transfer program. What if the majority of our social transfer programs were open to all citizens with no conditions i.e. work requirements? What if the land of the free gifted its citizens with the freedom to budget funds how they see fit? Research is needed. However, I believe, and numerous studies heavily indicate, that the United States would see even more success in lifting the citizenry out of the bonds of poverty. With more, if not all, people having access to basic economic security, perhaps then we could discuss being a nation of equal opportunity.

References

University of California at Davis (2023) What is Deep Poverty? Retrieved September 19th, 2023 from https://poverty.ucdavis.edu/faq/what-deep-poverty 

Sharon Parrott (July 28th, 2022) The Nation Has Made Progress Against Poverty But Policy Advances Are Needed to Reduce Still-High Hardship Retreived September 11th,2023 from  https://www.cbpp.org/research/poverty-and-inequality/the-nation-has-made-progress-against-poverty-but-policy-advances 

Will Fischer, Douglas Rice, and Alicia Mazzara, “Research Shows Rental Assistance Reduces Hardship and Provides Platform to Expand Opportunity for Low-Income Families,” CBPP, December 5, 2019, https://www.cbpp.org/research/housing/research-shows-rental-assistance-reduces-hardship-and-provides-platform-to-expand.

Zoë Neuberger, “By Acting Now, Policymakers Can Connect More Low-Income Children With School Meals,” CBPP, September 2, 2021, https://www.cbpp.org/blog/by-acting-now-policymakers-can-connect-more-low-income-children-with-school-meals.

Hasdell, Rebecca (2020) WHAT WE KNOW ABOUT UNIVERSAL BASIC INCOME A CROSS-SYNTHESIS OF REVIEWS. Stanford Basic Income Lab. https://basicincome.stanford.edu/uploads/Umbrella%20Review%20BI_final.pdf