Despite the promising advantages of the UBI, the opponents of the idea think that it is associated

with many disadvantages especially the high cost associated with its implementation, especially for
countries with a large population. Leakage of public transfers to non-eligible persons is another
important disadvantage. The UBI benefits all the people within the county, even the rich, so it could
mean lower benefits going to the targeted people than the custom schemes, so it will be very far
from the appropriate level required to eradicate poverty. Additionally, the UBI may have an adverse
impact on labour markets, as it could negatively affect work incentives for some people and reduce
the supply of labour. Moreover, it could encourage the birth rates, thus restrains the efforts exerted
by some highly populated countries to control birth rates. It could also encourage immigration to
countries with this kind of social transfer complicating the current immigration problems.

The cost of this program will be significant, especially for Arab countries with a high population
density such as Egypt, Algeria, Iraq, and Sudan. For instance, the cost of the UBI program set at 25
percent of income per capita could cost Egypt and Iraq around USD 76 and 56 billion annually, while
in resource-rich countries like Saudi Arabia and the United Arab Emirates, the cost could reach USD
195 and 101 billion per year respectively

Universal basic income isn’t the most efficient way to help people in need. While current social
welfare programs direct aid to low-income people, UBI gives it to rich and poor alike. Even
millionaires receive monthly payments they don’t need. 

If the U.S. took all the money it spends on aid programs now and divided it among the entire
population, the poorest Americans would receive much less aid than they do now. Like Robin
Hood in reverse, the program would rob from the poor and give to the rich and middle class.  

If UBI gives workers enough money to live on, employers will be able to get away with paying
them less than a living wage. It’s already happening to some extent in the gig economy. Many gig
workers are willing to work for low wages because they have other sources of income.  

For many countries, the financial burden that is implied by the introduction of universal basic
income systems might be far too high and therefore, it will not be realistic in many countries all over
the world to implement those basic income schemes since they would simply be far too expensive.

Lower benefits for targeted individuals: UBI provides income to all citizens, including the rich, which
means that the targeted population may receive lower benefits compared to more specific welfare
schemes. This can hinder efforts to eradicate poverty effectively.

Work disincentives and shortage of labour: UBI has been criticized for potentially removing the
incentive to work, resulting in a shortage of labour and skills in the economy. This can adversely
affect productivity and economic growth.

Insufficient solution for complex issues: UBI, as a cash transfer program, may not address the
multifaceted challenges faced by individuals living in poverty. Issues such as addiction, poor health,
lack of skills, and education require comprehensive solutions beyond providing cash assistance.

Potential for flawed incentives for economic migration: Improperly designed UBI programs may
create incentives for individuals from poor countries to migrate to wealthier countries in order to
access the income payments. This can strain resources in recipient countries and lead to flawed
migration patterns.

Dependency on government support: UBI may foster long-term dependency on government

assistance, reducing individual initiative and self-reliance. This can have long-term societal
implications and hinder personal development.

Impact on other social programs: The implementation of UBI may result in a reduction of funding for
other social programs and support systems. This can negatively affect vulnerable populations who
rely on targeted assistance for specific needs such as healthcare, education, and housing.

Financial burden for countries: UBI's significant cost can be unrealistic for many countries worldwide,
especially those with limited resources. Funding such programs may require substantial financial
investments that may not be feasible or sustainable.

Potential support for undesirables: UBI may inadvertently provide financial support to individuals
engaged in undesirable activities, such as criminal behaviour, without ensuring that resources are
directed toward societal well-being.