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UBI increases economic inequality

UBI supplants programs targeted at reducing poverty, redirecting that funding to the wealthier members of society.

Context

Poverty and income inequality are complex issues and a wide range of approaches to these problems have led to the development of many different social and economic programs. UBI could replace many of those programs, for better or for worse.

The Argument

UBI is essentially a generalized welfare program, and it would inevitably supplant existing welfare programs, which are more specialized. Specialized welfare programs can target wealth transfers to the people most in need, such as those experiencing unemployment, undergoing housing problems, or living with disabilities. In contrast, UBI would transfer wealth to everyone equally, resulting in a relative benefit for the wealthier members of society, who are not eligible for specialized programs for the needy, but would receive UBI payments in spite of their lack of financial need. Therefore, rather than fighting poverty, UBI would lead to greater income inequality.

Counter arguments

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Premises

Targeted welfare programs transfer wealth disproportionately to those who need it most. UBI would transfer wealth to everyone, regardless of need, resulting in a comparative benefit for the rich.

Rejecting the premises

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References

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Proponents

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This page was last edited on Thursday, 20 Dec 2018 at 06:03 UTC