What if Universal Basic Income, commonly known as UBI, was tested in more cities? That’s a thought that has crossed the minds of many.
In the handful of cities where UBI has been tested, the results have been intriguing. But they’ve only scratched the surface of the potential impact. So let’s imagine UBI expanded to more, diverse urban spaces.
We’d see a ripple effect, likely causing significant shifts in different sectors and seven key areas could see significant change.
1. Decrease in poverty levels
One of the direct impacts of implementing UBI in more cities would be a noticeable decrease in poverty levels.
Universal Basic Income, as the name suggests, provides a basic level of income to all citizens, regardless of their employment status.
This has the potential to lift countless individuals and families out of poverty.
For instance, consider a city with a high poverty rate. Introducing UBI would mean every resident receives a certain amount of money regularly. This can make a significant difference to those on the lower end of the income scale.
To illustrate this, let’s look at some case studies. In the city of Stockton, California, which ran a UBI pilot program, recipients used the majority of their funds on necessities such as food and utilities.
Similarly, in Ontario, Canada, a UBI experiment showed that recipients were better able to afford basic needs.
- Individuals who are living in poverty could use this money for essential needs like food, clothing, and shelter.
- Families struggling to make ends meet could use it to cover bills or invest in opportunities for their children.
- Even for those slightly above the poverty line, UBI could provide an essential safety net, reducing the fear of sudden financial hardships.
The reduction in poverty levels could be one of the most profound impacts if UBI was tested and implemented in more cities.
2. Economic stimulation
The second major impact of implementing UBI in more cities would be the stimulation of the local economy.
With more money in the hands of citizens, spending would naturally increase. This could lead to a boost in various sectors of the local economy.
Let’s put this into perspective. Imagine a city where all residents receive a basic income, which they spend on goods and services.
This will result in increased demand for these goods and services, leading to growth in the sectors that provide them.
A study of Alaska’s Permanent Fund Dividend, which is a form of UBI funded by oil revenues, showed that the program didn’t reduce employment, and instead stimulated the part-time work economy. Similar results could be expected if UBI was tested in more cities.
More specifically, this economic stimulation could manifest in several ways:
- Increased consumer spending could encourage businesses to expand, creating more jobs.
- Entrepreneurs could use the UBI as a safety net, enabling them to take risks and potentially launch successful businesses.
3. Increased healthcare access
Another potential outcome of testing UBI in more cities is improved access to healthcare.
For many citizens, especially those on the lower end of the income scale, healthcare can be a significant financial burden.
With a guaranteed income, individuals and families could afford regular check-ups, purchase necessary medications, and seek timely medical intervention when needed.
In the UBI pilot program in Stockton, California, the city reported an increase in the mental health of its residents.
This is not surprising considering that financial stress is a significant contributor to mental health issues.
Easing this burden could lead to an overall improvement in the population’s mental wellbeing.
Additionally, with the financial security provided by UBI, people might be more likely to invest in preventive healthcare measures.
This could lead to a healthier population and potentially lower healthcare costs in the long run.
4. Reduction in crime rates
It’s not immediately obvious, but UBI could have a positive impact on crime rates.
When people are struggling to make ends meet, some may unfortunately resort to illegal activities as a means of survival.
By providing a basic income to all citizens, UBI could potentially reduce the motivation for committing such crimes.
This isn’t just speculation, there is evidence to support this claim. In 2010, a town in Namibia tested UBI and reported a significant drop in crime rates during the trial period.
The town’s police force attributed this reduction directly to the basic income initiative.
While each city is unique and results can’t be guaranteed, the potential for a reduction in crime rates is another compelling reason to test UBI in more cities.
It’s a possibility that would undoubtedly contribute to safer communities and improved quality of life for all residents.
5. Better quality of life
UBI also has the potential to enhance the overall quality of life for citizens.
This isn’t just about meeting basic needs, but also about providing individuals with the freedom and flexibility to make choices that can improve their lives.
For example, someone may decide to go back to school for further education, confident in the knowledge that they have a safety net of a guaranteed income.
Others may choose to leave a job they don’t enjoy, freeing up time to pursue a career they’re passionate about.
A UBI pilot program in Finland found that participants reported increased trust in social institutions and improved mental wellbeing.
They also reported having more trust in their future and their ability to influence societal issues.
In this way, UBI offers more than just financial stability. It can provide people with opportunities and choices they may not have had otherwise, leading to an overall enhancement in their quality of life.
6. Reduction in income inequality
Another potential outcome of UBI implementation in more cities could be a reduction in income inequality.
By providing everyone with a basic income, it can help to bridge the gap between the rich and the poor.
Income inequality is a persistent problem in many cities and can lead to a number of social issues, including crime, poor health outcomes, and lower levels of education.
UBI could help to alleviate these issues by providing a financial safety net for all residents.
A research paper from the Roosevelt Institute suggests that implementing UBI could effectively reduce income inequality.
The study found that a UBI could significantly lower the Gini coefficient, a measure of income inequality, bringing it closer to levels seen in more egalitarian societies.
7. Potential for social change
Finally, testing UBI in more cities could lead to significant social change. By providing everyone with a basic income, societal attitudes towards work, poverty, and income could shift.
For instance, if people are no longer tied to jobs they dislike just to make ends meet, they could pursue careers they’re passionate about.
This could lead to a happier, more productive workforce.
Additionally, implementing UBI could change attitudes towards poverty. If everyone is receiving the same basic income, the stigma often associated with receiving government assistance could decrease.
Finally, UBI could also influence social structures and relationships.
Without the pressure of financial survival, people might have more time to engage with their communities, families, and personal interests.
While these changes might seem intangible compared to the economic impacts of UBI, they’re just as important.
Testing UBI in more cities would provide an opportunity to explore these potential social changes in depth.
