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DOI: 10.1093/wentk/9780197556252.001.0001
Miranda
To my daughter
CONTENTS
ACKNOWLEDGMENTS XIII
Introduction 1
Part 4: Examples
Part 5: Advantages
Part 6: Objections
NOTES 205
GLOSSARY 229
INDEX 233
ACKNOWLEDGMENTS
fully refundable child tax credit—a kind of “UBI for kids.” Others
are working with Mayors for a Guaranteed Income, an organization
that is currently sponsoring more than forty different pilot programs
in cities across the United States, from Los Angeles, California, to
Providence, Rhode Island.
So, if the idea of a UBI has been around for several centuries, why
is there suddenly so much interest in it today? The current popu-
larity of the UBI does not seem to be due to any single factor or issue.
But there does seem to be a cluster of issues related to economic inse-
curity which, taken together, have convinced a lot of people that the
time is right for a UBI.
Increasing inequality and stubbornly resistant pockets of pov-
erty are one set of issues that have captured many people’s atten-
tion. Developed economies are growing wealthier, but that wealth
seems to be becoming more and more concentrated in a smaller
number of hands, while the economic well- being of workers
and the unemployed stagnates or in some cases declines. Merely
tinkering with existing welfare programs seems unlikely to make
a significant difference. A UBI would constitute a radical shift in
our approach to shrinking inequality and dramatically reducing
poverty.
We also live in a world where the future of work is radically un-
certain. Advances in technology and artificial intelligence (AI) have
led to machines doing work that only humans used to be able to do.
And the trend is likely to continue at an accelerated pace. At a min-
imum, these technological developments will be highly disruptive,
putting many people out of work and leaving them struggling to
find alternative employment. At worst, there simply might not be
any sources of alternative employment once AI gets smart enough.
What does a welfare state look like in a world without work? A UBI
represents one possible way forward.
Finally, some people are simply fed up with the expense, pater-
nalism, and complexity of existing welfare systems. Do we really
need hundreds of different social welfare programs at the Federal,
state, and local level? Do we really need a welfare system built on
the assumption that poor people can’t be trusted to make their own
decisions about what to buy? A UBI strikes many as a simpler, more
efficient, and more respectful way of helping the poor than our cur-
rent system.
Introduction 3
Of course, the UBI is not without its critics. In fact, one of the
interesting features of the debate over the UBI is the polarization
of opinion on the topic. There are a lot of books out there that are
passionately in support of a UBI. And there are a lot of critics who
argue that a UBI would be a moral and economic catastrophe. They
argue that a UBI would be ridiculously expensive. People would
stop working. People would blow the money on drugs, alcohol, and
gambling. A UBI is the first step on a slippery slope toward commu-
nism. And so on.
What’s too often missing from this debate is serious analysis that
recognizes both the advantages and the drawbacks of a UBI. And
that is precisely what we hope to provide you with in this book. Both
of us are on the record as supporting a UBI, all-things-considered.
But neither of us is suffering from any illusions regarding the poten-
tial problems with the policy. Our goal in this book is not to convince
you to become a supporter of the UBI, or to oppose it. Rather, we
want to provide you with the most accurate information possible
about the arguments, evidence, insights and weaknesses from both
sides of the debate, so that you can make up your own mind about
the issue in an intelligent way.
As a political philosopher and an expert in the law and economics
of taxation and welfare policy, we’re in a unique position to guide
you through both the “big ideas” of the UBI and the nuts-and-bolts
of policy design. It’s important to think about whether a UBI would
be fair or equitable, or compatible with respect for the dignity and
worth of the individual. But it’s also important to know how it
would work. How much would it realistically cost? How would it
be funded? How would it be administered? Would it vary based
on wealth, regional cost- of-
living differences, or family compo-
sition? Too often, detailed issues of policy design are neglected in
discussions about the UBI. Our book takes these issues seriously,
and presents a range of possible approaches for designing a UBI
that works.
Our book is organized into seven parts. Part 1 provides a brief
overview of the UBI—what it is, where the idea came from, where
it’s been tried, and what the main arguments for and against it are.
Part 2 dives right into questions of policy detail. How big would a
UBI be, who would be eligible, how would it be delivered, and more.
Part 3 compares the UBI with alternative social welfare policies such
4 Universal Basic Income
as the Earned Income Tax Credit (EITC), the Negative Income Tax
(NIT), and traditional welfare programs like food stamps, which are
now administered through the Supplemental Nutrition Assistance
Program (SNAP). Part 4 discusses the results of various experiments
with the UBI. Part 5 discusses potential advantages of a UBI, and
part 6 discusses some common objections. Finally, part 7 explores
the politics of a UBI—which groups support it, which oppose it, and
what chance does it have of actually becoming policy?
Throughout the book, we compare a UBI with a range of alterna-
tive social welfare programs. Most of those policies will be drawn
from the United States, since that is the country with which both
of us are most familiar. But many of the lessons that we draw from
these comparisons—in-kind vs. cash transfers, means-tested vs. non-
means-tested programs—generalize to other countries as well. We
think these comparisons will help you gain a better understanding
of the distinctive features of a UBI, even if you are unfamiliar with
or not particularly interested in the US welfare system.
We wrote this book to serve as a resource for people who want to
gain a better understanding of the UBI. And we’ve tried to make it
as useful and as flexible a resource as possible. If you want, you can
read the whole thing from cover to cover. But each chapter in this
book is a self-contained answer to a specific question about the UBI.
So if you just want to know, say, how a UBI would affect people’s
willingness to work, feel free to skip right to chapter 49, and read
that answer on its own. Sometimes, in answering a question, we’ll
refer to ideas or data that we discuss elsewhere in the book. When
we do that, we’ve provided cross-references to make it easy for you
to jump straight to the relevant parts of the book. Finally, if you ever
encounter a technical term or abbreviation (what’s SNAP again?)
with which you’re not familiar, you can turn to the glossary at the
end of the book for a brief definition.
So, after all that, let’s start with a seemingly simple question. Just
what is a UBI, anyway?
Part 1
THE BASICS
1
WHAT IS A BASIC INCOME?
Pink-purple foxgloves
Leaning to the breeze—
And all the sweet of Devon
Sweeps back across the seas:
From the old kind books came the old friends trooping,
And the old songs called, like the curlew swooping;
And like a sudden sup that was hot and strong and sweet,
The love of bonny Scotland, it ran from head to feet.
What far-away workman made her, and what was his meaning?
Was she a Victory? or Hope, or Faith?
O flag, though you were not my own, I know I should love you:
I love all flowers, all flags:
Their colors in the wind flowing, in the sun brightening:
Deep blue of the night sky, or the splendor of flame,
Or green of spring, or the daring imperious scarlet,
The color of men’s blood:
Their curious blazonry I love, heraldic, historic,
Leopard or eagle, stripe or star or raying sun,
Or the Cross of St. George and the Cross of St. Andrew,
Or whatsoever sign men have loved and followed.