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What is Universal Basic Income?

The Universal Basic Income (or U.B.I.) is a periodic, monthly cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement.

The government guarantees that each citizen receives a minimum income - despite their circumstances.

How much would citizens and civilians receive?

Citizens and civilians would receive a monthly, tax-free income of 850Ͼ.

This is paid directly into bank accounts or building society accounts, so recipients have the freedom to spend the money of whatever is deemed appropriate

How is U.B.I. defined in Altera?

In Altera, UBI is defined by five key characteristics:

• Period: UBI is paid at regular intervals of one month - it is not a one-off grant or loan

• Cash Payment: UBI is paid in an appropriate medium of exchange, allowing those who receive it to decide what they spend it on; paid directly into bank accounts and not in the form of stamps, coupons or other restricted forms of payment

• Individual: UBI is paid to and for the individual and is not based upon households and occupants

• Universal: UBI is not means-tested - the same amount is paid to every recipient

• Unconditional: UBI is paid to the individual without a requirement to work or demonstration of a willingness-to-work

What is the purpose of UBI?

The aim of Universal Basic Income is twofold:

• Firstly, to combat and finally abolish poverty by guaranteeing everyone a basic income

• Secondly, to create a foundation for every citizen to stand upon, to improve productivity by reducing stress, allowing greater access to higher education and volunteering to better the community
  

How is UBI paid for?

The budget for Universal Basic Income is generated from downsizing and cutting of previously administered welfare programs and a modification to the tax code. Very little "new wealth" is required.

Most of the funding will come from the money saved by cutting or abolishing the bureaucracy and red tape generated and required by previous welfare schemes. Equally, a lot of the funding is found by redirecting the funds previously allocated to these programmes.

A small portion of the funding required, particularly during the early transition phase, will come from a slight modification to the tax code; this will not affect the majority of people:

• A transactional fee of 0.05% of transactions over 100,000Ͼ from one account to another will be applied

• A taxation upon companies that use automation and robotics to generate 60% or more of their productivity; a 2.5% tax upon post-cost profits
  

Won't giving out free money cause problems?

The biggest argument against UBI is the idea that it will increase laziness and greatly increase the consumption of unhealthy lifestyles.

A 2013 study by the World Bank specifically examined the outcomes of implementing UBI, and the impact it would have upon a population.

The findings showed that overwhelmingly people did not spend disproportionate amounts of UBI on cigarettes, alcohol or junk food.

Another study conducted by the Council for Information showed that less than 1% of recipients of UBI would stop work permanently; though this was largely to take care of family members and children.

Overall, citizens reduced their working hours by around 10%; though productivity overall rose by 15% as citizens found better employment, showed reduced levels of stress and overall enjoyed their work more.

Any citizens that worked less overall would use the extra time to go back to school, look for more suitable employment, spend money on social and cultural activities or commit to voluntary programmes.

Why is UBI deemed more effective at tackling poverty than welfare?

Welfare and unemployment programmes come with a lot of strings and cost attached; such as taking part in non-beneficial courses, applying to set number of jobs per month, or forcing recipients to take any employment - even if the job is not suited to the worker.

Additionally, most forms of welfare require high levels of bureaucracy - with large teams required to assess individuals, as well as create and maintain databases of applicants, recipients and available work.

All in all, UBI aims to reduce government spending and better everyone's lives by better-utilising government resources.

Merito non pareret. | By merit, not birth.