Universal Basic Income
Universal basic income is the unconditional and uniform fixed cash transfer to everyone irrespective of their status either poor or rich, employed or unemployed. This concept firstly proposed by Switzerland but idea was dropped after analyzing its effects. Finland became the first country to adopt this system. UBI was proposed in economic survey to take out people from poverty and provide them funds to fulfill their basic needs.
Pros of Universal basic income
1) Productivity- If a person gets the fund for fulfilling their basic needs, he will think for his future and involve in some good kind of profession. He can think to open any business which can boost entrepreneurship in country or can involve in any service where he will try to give his maximum so that his status can be improved.
2) Reduction in crime rate— If a person will get money to fulfill its basic needs, Theft, murders & other crimes will become less in the country.
3) More money in the hand of people will increase the GDP growth in the country.
4) As this will subsume all the subsidies schemes of the government, corruption will also become less Because now government need to provide only funds for a single scheme so better mechanism can be introduced.
1) Scarcity of labor- Who would like to work as a shoe police worker or being involved in small works. Everyone will have basic funds so they will try to get good jobs which can lead to scarcity of labor.
2) Unemployment- when basic needs are fulfilled without doing any work, who would like to do work? Most the persons will become totally depend on this income and won’t do anything.
3) increase in birth rates- As this money will be provided to everyone, many persons can think to have more no. of childs to get more money from the government.
As, everything has two sides like a coin, If we see the cons- It might help in growing more unemployment and scarcity of labor in the country but if we see the positive side, it will leads towards prosperity in the economy. Everyone will get basic income so they will become more innovative and think for more. We can see the example of Finland, That country Is doing well after applying universal basic income and GDP growth rate has also increased. For our country, Government is supposed to implement in two- three villages to see the effects of it. Time is the best tester so the effect can be seen in future only.