Is a Basic Income For All The Answer?

The idea of a ‘Basic Income For All’, granted unconditionally to all individuals without a means test or a work requirement has been touted for many years.  In recent years, the idea has gained ground due to pressure groups such as the Basic Income Earth Network (BIEN) and backing from Noble laureates such as Christopher Pissarides.  Even in political circles, ministers are beginning to make public statements in favour of considering the idea.  Earlier this year, Emmanuel Macron, the French Minister for Economy said: “Basic income is an interesting idea. The debate shouldn’t only be about being pro or against, but I think it’s an idea we should investigate further. Why? Because it means giving the possibility to everyone to have a starting point in life.” 

In Switzerland this January it was announced that there would be a countrywide referendum for plans to give every adult £425 a week in an attempt to end poverty.  If the Swiss vote yes, it would make the country the first in the world to pay its citizens a basic income for all.

The arguments against a basic income for all are manyfold but usually end up with cost.  There is no getting around the fact that the cost of any scheme would be far greater than existing social welfare schemes. Groups like BIEN would argue that this misses the point altogether.  It is interesting to note that the cost of running a basic income scheme would be far, far lower than the cost of running any other form of means-tested scheme.  The existing bureaucratic nightmare could be eliminated immediately. In reality, it would give Governments the chance to quickly and easily do what they are supposed to be good at and that is the effective distribution of wealth from the rich to the poor.

There are currently a variety of basic income proposal being discussed.  They range from full blown implementations where all other social welfare schemes are scrapped to the introduction of a lower rate basic income that replaces one or two welfare schemes such as unemployment.  The latter proposals would then phase in a larger basic income while reducing other services.  At the 14th Basic Income Earth Network Congress, Timothy Roscoe Carter presented a paper, The One Minute Case for a Basic Income.  It is a really good starting point for anyone who is interested in why basic income might be a good idea.