Tag Archives: economy

Universal Basic Income: A Catalyst for Equality and Economic Resilience

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I was recently chatting with my youngest brother, who lives in a NE England coastal town, and he asked about Justin Trudeau’s resignation, and what was going to happen next. A Tory at heart, my sibling’s instincts are those of hard work, community service and fewer taxes.  We started to discuss “the next pandemic” and what could be done about the financial stress many people suffered during the COVID-19 event, and I mentioned Universal Basic Income (UBI) as a possible solution and long term game changer. He had never heard of UBI, and so I thought it was time for this post. This one’s for you, Bro! 

Universal Basic Income (UBI) represents one of the most transformative policy ideas of our time, offering a practical solution to poverty, inequality, and the economic challenges of the 21st century. More than just a tool to address immediate financial hardship, UBI is a blueprint for fostering fairness, stability, and shared prosperity.

At its core, UBI guarantees every citizen a regular, unconditional income, free from the inefficiencies and stigmatization of traditional welfare systems. This simple, yet revolutionary concept ensures that no one is left without the means to secure basic necessities such as food, housing, and healthcare. UBI lifts individuals out of poverty, empowering them to make choices that improve their well-being and build resilience against life’s uncertainties.

A Revenue-Neutral Model for UBI
Critics often argue that UBI is financially unsustainable, but innovative approaches like those proposed by UBI Works demonstrate that it can be funded in a revenue-neutral way. The UBI Works model suggests targeted taxation on sectors and activities that can contribute more to public welfare without burdening the average taxpayer. For example, the proposal includes a 4% tax on profits and a 3% tax on remuneration within the financial sector—an industry that benefits significantly from economic activities.

Additionally, UBI Works advocates for closing tax loopholes and tackling tax evasion, ensuring corporations and wealthy individuals contribute their fair share. This model not only provides a sustainable funding mechanism for UBI, but also reinforces principles of fairness in the tax system.

Stimulating Economic Growth and Jobs
From a supply-and-demand perspective, UBI has the potential to be an economic game-changer. By boosting consumer purchasing power, UBI drives demand for goods and services, spurring business growth and job creation. Research by the Canadian Centre for Economic Analysis projects that a UBI program in Canada could grow the economy by $80 billion annually and add 600,000 jobs, all while eliminating poverty nationwide.

On the supply side, UBI offers workers the flexibility to pursue education, training, or entrepreneurial ventures, aligning their skills with roles they are passionate about rather than accepting exploitative or mismatched jobs out of financial desperation. This not only improves individual well-being but also enhances productivity across the economy.

A Tool for Equity and Resilience
As technological disruption, automation, and globalization continue to reshape labor markets, UBI provides a much-needed safety net. It equips individuals to navigate a rapidly changing economic landscape, enabling them to invest in themselves without the constant fear of financial ruin. At the same time, UBI reduces income inequality and promotes social cohesion by narrowing the wealth gap and fostering a more equitable distribution of resources.

Critically, UBI shifts the focus from reactive welfare systems to proactive empowerment. It eliminates the stigma and inefficiencies of means-tested programs while ensuring everyone benefits from a guaranteed income floor. This universal approach builds trust and unity within society, creating a stronger, more inclusive social fabric.

A Bold Vision for the Future
Universal Basic Income is more than an economic policy—it’s a statement of values. It asserts that every individual, regardless of circumstance, deserves dignity, security, and opportunity. By adopting a revenue-neutral model, UBI proves that fairness and sustainability can go hand in hand.

As the world grapples with inequality, economic volatility, and the social challenges of the 21st century, UBI offers a bold yet practical solution. It envisions a future where poverty is eliminated, opportunity is universal, and every citizen has the means to lead a secure and fulfilling life. UBI is not just a policy—it’s a pathway to a just and prosperous society.

Limitarianism – A Balanced Way Forward 

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With the US oligarchy taking over the White House next year, it’s time to look at what we need to develop to counter the mess and the broken economy they will leave post-Trump’s presidency. Philosopher Ingrid Robeyns, a leading proponent of limitarianism, argues that beyond a certain threshold, wealth does not significantly improve individual well-being, and may cause harm to others by perpetuating inequality and reducing collective welfare. While not a new idea, with historical thinkers such as Plato and JP Morgan espousing similar concepts, perhaps it times to further explore limitarianism.

Limitarianism is a philosophical and political concept that advocates setting limits on individual/family wealth to promote social equality, reduce harm caused by extreme wealth accumulation, and ensure fair distribution of resources. It is rooted in ethical considerations about justice, sufficiency, human welfare, and a sustainable environment. 

The philosophy suggests that extreme wealth is morally problematic, especially in societies where poverty and inequality persist. Excess wealth could be better used to address social issues like hunger, education, or healthcare. The accumulation of excessive wealth can lead to an imbalance of power, undermining democratic institutions. Wealthy individuals may exert disproportionate influence over political systems, media, and public policies. How many times have we seen this in western-style G7 democracies in recent years, where the right do everything they can to protect their wealth and power, while working people can’t pay for the basics of housing, food and transportation? 

Supporters of limitarianism argue for changes in taxation on income, inheritance, and wealth to cap extreme fortunes, along with a redistribution of excess wealth to fund programs like Universal Basic Income (UBI), ensuring a safety net for all citizens. Critics argue that wealth limits could stifle innovation, entrepreneurship, and economic growth, while curtailing personal liberties, and especially the right to accumulate multi-generational wealth.

While enforcing wealth caps, and managing global disparities in wealth distribution can be challenging in practice, limitarianism is gaining traction in debates on wealth inequality, especially in light of growing disparities between the ultra-rich and the rest of society. Movements advocating for wealth taxes and income redistribution often draw from limitarian principles to challenge the concentration of wealth and power.

As a leading advocate for limitarianism, Robeyns argues that extreme wealth is both unethical and harmful to democracy. She proposes a wealth cap of approximately €10 million, emphasizing that any surplus beyond what is needed for a flourishing life could be redirected toward societal challenges like the climate crisis or inequality. Where do you stand on this issue? For me, it seems like one possible set of mechanisms to help rebalance the redistribution of resources, while still supporting a western-style capitalist growth economy.