Examining the Case for Universal Basic Income (UBI): A Solution to Capitalism’s Failures?
Examining the Case for Universal Basic Income (UBI): A Solution to Capitalism’s Failures?
UBI’s potentials and limitations in a capitalist society — and beyond. Moving towards utopia.
In recent years, the concept of universal basic income (UBI) has been thrust into the spotlight as a potential solution to the growing issues of inequality, poverty, job automation, and general economic insecurity.
UBI, in short, is a radical policy that would provide every person with a regular, unconditional sum of money that would, at the very least, cover their basic needs. Many argue that it could offer a long-overdue safety net for those struggling to make ends meet while also illuminating a pathway towards an egalitarian, semi-Utopian future.
But is UBI truly the answer to capitalism’s flaws?
In this essay, I will examine some of the pros and cons of UBI and discuss whether it constitutes a crucial step towards a more equitable and sustainable society, or if it’s merely a Band-Aid for a system that cannot and should not be saved.
The case for UBI: A safety net for a broken system and the potential for more
Capitalism has failed us. It has created a world in which the wealthy become even wealthier while the rest of us struggle to survive. A world in which profit and growth are pursued at the expense of the planet, its ecosystems, and the majority of its inhabitants. A world in which inequality is soaring, poverty is rampant, and the social security net for those who cannot keep up is being dismantled.
Homelessness has been turned into a crime; poverty into a sin.
In this world, a guarantee that every single person has the financial means to at least meet their most basic needs has become more necessary than ever. That is precisely what universal basic income (UBI) delivers: a regular sum of money provided by the state to each citizen, sufficient to cover the necessities of life such as housing, food, clothing, healthcare, and education. No strings attached. No means testing. No discrimination.
UBI recognizes that every person has the right to a dignified life and provides a way to achieve a minimum level of financial security. As such, it could be interpreted as a significant step towards a more equal and compassionate society. Do not allow yourself to be fooled by capitalist propaganda. (Neo-)liberals and the wealthy will tell you that UBI is a handout; that it will discourage work and create dependency.
They will tell you that it’s too expensive and will destroy the economy (as if that would be something bad). They will tell you anything to maintain the status quo and protect their own interests. After all, UBI would be the first step towards the obliteration of their oligarchy.
The truth is that UBI has been proven to work in countless, albeit small-scale, pilot programs and experiments around the world (see for example this report from The Stanford Basic Income Lab). It has the potential to reduce poverty and inequality, provide safety for those unable to work, increase mental health across the population, and provide people with the freedom and security to pursue their passions and dreams. What a world that would be.
Funding UBI and eating the rich (at the same time)
Funding universal basic income (UBI) is a critical aspect to its implementation and long-term viability. There are several options for doing so, all of which aim to redistribute wealth and resources in a more equitable manner.
Or in other words: eat the rich.
UBI could be funded by sharply increasing taxes on the wealthy and their corporations. This would include higher taxes on wealth, profits, and income, as well as increased inheritance taxes. Corporations could be further taxed based on degrees of automation or, even better — and this is going to sound radical — brought into public ownership.
Read more about the horrors of neoliberalism here:
Furthermore, money could be syphoned out of the bloated and deeply corrupt financial sector by levying taxes on financial transactions such as stock purchases and sales, ultimately reducing shareholder power.
These proposals, taken together, would do more than just fund UBI; they would also address wealth and income disparity. As I said, a Band-Aid for capitalism’s numerous shortcomings.
It should be noted, however, that all of those options will face heavy resistance from the wealthy elite and their political allies/puppets. They will almost certainly use their power and influence to spread capitalist-neoliberal propaganda, lobby politicians, and oppose UBI at every turn.
They will argue that UBI is too costly, that it will destroy the economy, that it will breed dependency and laziness. It is critical to recognize and remember that these arguments are self-serving and merely meant to maintain the status quo.
UBI should be viewed as a fundamental human right, not a handout or charity. It is a way of recognizing every person’s inherent value and worth beyond their ability to work or generate profits for others; a means of sharing wealth, progress, and resources more fairly and equitably, focusing on the needs of the many rather than the greed of the few.
The potential benefits of UBI: Steps towards a better world and the end of capitalism
One major benefit of UBI is its potential to simplify the current welfare system by abolishing the need for means-testing and reducing bureaucracy.
With a fixed, unconditional payment to all individuals, there would be no need to review and calculate entitlements for each person, ultimately eliminating huge swaths of the capitalo-bureaucratic machinery (contrary to common belief, bureaucracy and general inefficiency both flourish under a capitalist system — see for example the works of David Graeber or Michael Parenti). This would not only provide security and equality of opportunity but would also reduce costs and free a significant portion of the population from useless toil and bullshit jobs.
Your job is likely useless. Read more here:
UBI offers many other benefits as well:
It would help those unable to work or find sufficient work, such as the elderly, the disabled, stay-at-home parents, and students. It would provide people with the freedom to choose their own paths in life, pursue their passions and dreams, start their own projects and organizations, or be artists or writers. It would reduce poverty and inequality and a myriad of other things, improving health, education, and well-being for all. It would create a more compassionate and caring society, in which everyone possesses, at the very least, the opportunity to thrive and grow.
In this sense, UBI is not merely a Band-Aid to the failures of capitalism, it is a step towards a new socio-economic system altogether. By providing a guaranteed source of income for all, UBI allows for the possibility of dismantling the capitalist system, step by small step, and building something new in its place.
It offers the opportunity to break free from the constraints of the profit and endless growth motives and to prioritize the well-being and happiness of us, the people.
So, let us reject the capitalist myth of progress and development — the false promises of trickle-down economics and ‘hustle culture.’ Let us embrace the concept of a truly universal basic income and make the first of many steps towards a world in which everyone has the possibility to be happy. Will there be significant challenges and problems? — yes, of course. But unless we try, we’ll never know if it works.
As I hinted at, universal basic income, or UBI, is ultimately a capitalist solution to capitalist problems. In a socialist or anarcho-communist society, there would be no need for such a thing, as the means of production would be controlled by the workers themselves, and resources would be distributed based on need rather than profit.
However, given the current global economic system, UBI offers a way to mitigate some of the worst effects of capitalism and, as such, should — in my humble opinion — be embraced by leftists of all flavors. It lays the foundation for something more.
I’m author, writer, and activist Antonio Melonio, the creator of Beneath the Pavement. If you enjoyed this piece, please consider becoming a paid subscriber here on Substack or over on Patreon. It’s the best way to support Beneath the Pavement and help me put out more and higher-quality content.
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Sources and further reading
What we know about universal basic income: A cross-synthesis of reviews. Stanford Basic Income Lab (Rebecca Hasdell) https://basicincome.stanford.edu/uploads/Umbrella%20Review%20BI_final.pdf
The U.S. Could Help Solve Its Poverty Problem with a Universal Basic Income — Scientific American
The pros and cons of universal basic income — College of Arts and Sciences (unc.edu)