Key Takeaways
- Basic income could increase the global GDP.
- Funds from pollution taxes could support basic income.
- This approach addresses both poverty and environmental harm.
Economic and environmental challenges are immense. Recent research indicates that offering basic income, which means giving regular payments to all adults, could significantly boost the global economy. The analysis of 186 countries suggests that this could increase the global GDP by around 130%.
Dr. Rashid Sumaila suggests adopting the Polluter Pay Principle. Making major polluters pay for environmental damage could curb pollution while funding basic income. This innovative solution blends economic growth with environmental responsibility.
Pros versus Costs
A basic income for everyone worldwide living under the poverty line could raise global GDP by $49 trillion. This increase is nearly 39% of the current global GDP.
On the cost side, offering a basic income to the entire global population is estimated at $41.6 trillion, or about 30% of current GDP. Providing this support specifically to those below the poverty line reduces the cost to $7.1 trillion.
In Canada, the net advantage of providing a basic income to the population is projected at $541 billion. Roughly 10% of Canadians live under the poverty line, indicating the scale of the issue. Basic income may also help in reducing rising inequality, especially during shocks and extreme events.
Financing Basic Income While Reducing Environmental Harm
Carbon taxes are one way to support basic income and cut environmental damage. A flat tax of $50 to $100 per tonne on fossil fuel use could generate about $2.3 trillion.
This amount could provide basic income for those living below the poverty line in Asia, Europe, and North America combined.
Another option to fund basic income is by redirecting harmful fisheries subsidies. These government payments often lead to overcapacity and overfishing.
By reallocating these funds, especially in the least developed coastal countries, fishers could be lifted out of extreme poverty. This approach highlights how policy changes can address both economic and environmental issues simultaneously.
Governments could design targeted taxes on major polluters, such as the oil and gas industry.
This would not only raise necessary funds but also encourage industries to adopt greener practices. Combining these strategies could provide a sustainable way to finance basic income while reducing environmental harm.
Challenges Beyond Financial Cost
Implementing basic income faces several challenges besides just the financial aspects. Execution difficulties include ensuring the program is efficient and fair.
Public perceptions also play a role; some believe that basic income might reduce the incentive to work and save. Nonetheless, there are real-world examples showing its benefits.
In Alaska, part-time employment rose by 17% with basic income. In Indonesia, it helped decrease deforestation rates. Success hinges on multiple factors like financial stability and political commitment.
Governments need to create effective programs to tackle these issues. Basic income can act as a proactive strategy, providing a broad safety net and strengthening defenses against crises, such as pandemics and climate-related disasters.
