Hello viewers welcome to Info Thirst today we are going to talk about a concept which can benefit each and every one of us. Before we get into the topic we would like you to Follow us by clicking the follow button. Now that you have done that...So let's dive into it…
This global pandemic taught us many things in many ways one of which is managing funds, saving funds for times like this so that you don't starve. But by poverty one question comes to mind is 'How income inequality arises?' 'Can the problem of income inequality be solved?'
Now Universal Basic Income can be considered the solution to this problem and maybe this is the best time to implement this economic concept.
So what the concept of Universal Basic Income states and how it works…?
As the name itself explains, every citizen in a country should get a sum of basic income without any conditions and then it's wholly up to them what they need to do with it.
Finland is among the few countries who are testing this concept.
To practically explain you, Let's take a fictional person 'Mr. X'. Now mr. X owns a hotel but due to the spread of Covid-19 also known as coronavirus no one is visiting his hotel anymore. Which means his business has been shut down like every other business in the country. Now what the government can do is provide an equal amount of money to each citizen of the country. Which means theoretically there will be economic balance, people will have money to spend and in this way there can be a drastic effect on poverty.
And this concept isn't new, in 1797 this idea was proposed by Thomas Paine. Martin Luther King Jr. in 1967 fought for guaranteed income. And Milton Friedman came with a similar concept of negative income tax but not quite the same.
Benefits,
Will help many people who are suffering from financial pressure.
People can get help in following their passion and start business they love to do.
Automation and robots are already on the verge to change the world, and people are going to be unemployed and this concept can help with the unemployment rate.
Can help people to enjoy financial independence.
Also reduce the income inequality.
But why governments are not Implementing and what are the reasons and challenges faced by the governments.
Challenges faced,
Well it's simple who would like to work if they are paid just by putting a cushion under their head, which means there will be a shortage of workers.
No one will be innovative because now they are getting paid
without any burden.
Now there is a big debate that people who already have so much money shouldn't get paid the same.
And the giant question is where will all this money come from, because to give free money to a whole country will cost Billions and trillions of dollars per month.
By analysing the circumstances this may be the right time but we do not have enough resources and there is a lot of research to be done on this concept.
Hope this blog was informative and helped you in some way. Feel free to give your suggestion by commenting in the comment section below. Be updated for more posts by FOLLOWING/SUBSCRIBING us and following us on social media.Thank You for visiting Info Thirst.
0 Comments