Universal Basic Income – Let Them Eat Cake

Universal basic income, a proposal for all people to receive a modest amount of money from the government without conditions, is favored by many intellectuals. Everyone is guaranteed a basic living. Poverty is alleviated. People have freedom to choose between work and personal time. What is not to like? Is there any fault to this logic?

Throughout the modern era, the world is searching for ways to build strong economies and thriving communities. Different forms of government, from communist’s state controlled governments, liberal capitalists to welfare states have all tried. Many developed countries already have welfare payment for those who need it. How is universal basic income transformative from what comes before?

Some said the main distinction is it provides for everyone without conditions. It simplifies the system by removing the mean test and reduces the administration cost. I am afraid this differentiates it in a bad way. Instead of the poor, most money is now paid to middle or high income earners. The expense is multiplied. Yet the benefit is minimal. A small amount of cash does not improve the lives of middle and high income earners the way it does for the poor.

How much funding is required? Where do they come from? I often hear of vague ideas like automation and AI will unleash immense productivity, then people can enjoy the economic output with less labor. Presumption of abundance. This future would be an interesting topic for SciFi writers and philosophers to ponder. But UBI will be the largest government cash payout program in human history, it cannot be based on the presumption of abundance alone.

Take a look at the reality on the ground. No government, save some oil states like Qatar, is awash with money. Throughout the developed countries, economic growth has slowed, the population is aging. Our existing welfare system is already under stress. This difficulty is the direct cause of the social unrest and government instability in France today. If we struggle to sustain the welfare system we currently have, how can we dramatically expand it into UBI?

Left-wing intellectuals are often guilty of idealistic thinking. They are infatuated with the utopian vision but barely exercise any critical thinking. So UBI is sold as the scheme to provide everyone with basic needs, freedom and stability, much like “Let them eat cake” will be a realistic plan to save everyone from famine.