How the Heck We'll Pay for a Universal Basic Income

What would it take to adopt a basic income? Frank Stilwell, a Professor Emeritus in Political Economy at the University of Sydney, explains the pros and cons.

How would the government pay to provide Universal Basic Income to every citizen? It’s one of the harder questions relating to this topic. Frank Stilwell, a Professor Emeritus in Political Economy at the University of Sydney, says there’s an “inevitable uncertainty” surrounding UBI and its economic consequences, which all depend on how it’s implemented.

In an essay for the Green Institute, titled “A Universal Basic Income: Economic Considerations,” Stilwell walks readers through how a government might go about funding a program as radical as this one. He argues UBI requires further examination before it’s adopted in any national government.


Others have suggested more precise actions that could be taken. James K. Boyce, who teaches economics at the University of Massachusetts Amherst, and Peter Barnes, a co-founder of Credo Mobile, have suggested that assessing the value of our collective inherited wealth would yield billions of dollars in cash: 

"Currently, those who benefit most from our socially built assets pay almost nothing to use them. But that needn’t always be the case. We could charge for using key compo­nents of our legal and financial infrastructure; for example, modest transaction fees on trades of stocks, bonds and deriva­tives could generate more than $300 billion per year. Such fees would not only generate in­come for everyone; they’d discourage speculation and help stabilize our financial system. Similar fees could be applied to patent and royalty earnings, which are returns not only to inno­va­tion but also to mono­poly rights granted and enforced by society."

Indeed, there are currently a few studies highlighting the social benefits to a UBI, which have shown teens from poor families stay in school longer and mothers buy more time to be with their newborns. However, the broader economic implications are widely unknown, which is why a number of countries, including the Netherlands, Finland, and Canada are all running trials.


Many conservatives think a UBI might be a means to replace the welfare system—one way UBI could be funded. Boyce and Barnes point out that "Past proponents of the idea include the revolutionary Thomas Paine, civil rights leader Martin Luther King, Jr., free-market econ­omist Milton Friedman and President Richard Nixon." 

Stilwell argues, “If a UBI is at the expense of public spending on infrastructure, public housing, public education or other public services the pros and cons would need to be carefully assessed. A cost-benefit analysis of these alternatives would not necessarily favour the UBI option.”

Some say it’s all about finding the money, while others, like Kevin Milligan, professor of economics at the Vancouver School of Economics at the University of British Columbia, told Quartz this policy is all well and good, but we can't cover the cost according to his calculations. Still, he believes, “The issues UBI plans to address are important.”

Stilwell and many other UBI advocates agree in creating an evidence base for policy development. It’s the only sensible way to move forward and assess its worth.

“Meanwhile, the UBI proposal is important to consider because it raises a wide range of economic and social issues that we, as political progressives, should be discussing anyway,” Stilwell concludes. “It directs our attention to the all-important questions of ends and means: ‘what sort of society do we want?’ and ‘how should we restructure our economy so that the desired social outcomes can be achieved?’”

--

The world and workforce need wisdom. Why don’t universities teach it?

Universities claim to prepare students for the world. How many actually do it?

Photo: Take A Pix Media / Getty Images
Sponsored by Charles Koch Foundation
  • Many university mission statements do not live up to their promise, writes Ben Nelson, founder of Minerva, a university designed to develop intellect over content memorization.
  • The core competencies that students need for success—critical thinking, communication, problem solving, and cross-cultural understanding, for example—should be intentionally taught, not left to chance.
  • These competencies can be summed up with one word: wisdom. True wisdom is the ability to apply one's knowledge appropriately when faced with novel situations.
Keep reading Show less

What the world will look like in the year 250,002,018

This is what the world will look like, 250 million years from now

On Pangaea Proxima, Lagos will be north of New York, and Cape Town close to Mexico City
Surprising Science

To us humans, the shape and location of oceans and continents seems fixed. But that's only because our lives are so short.

Keep reading Show less

From zero to hero in 18 years: How SpaceX became a nation-state

SpaceX's momentous Crew Dragon launch is a sign of things to come for the space industry, and humanity's future.

SpaceX founder Elon Musk celebrates after the successful launch of the SpaceX Falcon 9 rocket with the manned Crew Dragon spacecraft at the Kennedy Space Center on May 30, 2020 in Cape Canaveral, Florida. Earlier in the day NASA astronauts Bob Behnken and Doug Hurley lifted off an inaugural flight and will be the first people since the end of the Space Shuttle program in 2011 to be launched into space from the United States.

Photo:Joe Raedle/Getty Images
Politics & Current Affairs
  • SpaceX was founded in 2002 and was an industry joke for many years. Eighteen years later, it is the first private company to launch astronauts to the International Space Station.
  • Today, SpaceX's Crew Dragon launched NASA astronauts Bob Behnken and Doug Hurley to the ISS. The journey will take about 19 hours.
  • Dylan Taylor, chairman and CEO of Voyager Space Holdings, looks at SpaceX's journey from startup to a commercial space company with the operating power of a nation-state.
Keep reading Show less

Six-month-olds recognize (and like) when they’re being imitated

A new study may help us better understand how children build social cognition through caregiver interaction.

Personal Growth
  • Scientists speculate imitation helps develop social cognition in babies.
  • A new study out of Lund University shows that six-month-olds look and smile more at imitating adults.
  • Researchers hope the data will spur future studies to discover what role caregiver imitation plays in social cognition development.
  • Keep reading Show less
    Scroll down to load more…