Universal Basic Income Explained – Free Money for Everybody? UBI

Universal Basic Income Explained – Free Money for Everybody? UBI

What if the state covered your cost of living, would you still go to work? Go back to school? Not work at all? What would you do? This concept is called a universal basic income or UBI And it’s nothing less than the most ambitious social policy of our times in 2017, basic income is gaining momentum around the world First trials are ongoing or on their way and a growing number of countries are considering UBI as an alternative to welfare How would it work and what are the key arguments for and against? Right now people can’t really agree. What universal basic income is or should be Some want to use it to eliminate welfare and Cupp bureaucracy Others want it as a free extra for existing programs, or even want it to be so high that work itself becomes optional For this video we’ll talk mostly about the minimum basic income enough money to be above the poverty line in the US this means about $1,000 a month or $12,000 a year The money would not be taxed and you could do whatever you wanted with it in In this scenario UBI is a way of transferring the wealth of a society while still keeping the free market intact But if we hand out free money will people just spend it on booze and stop working? A 2013 study by the World Bank specifically examined if poor people waste their handouts on tobacco and alcohol if they receive it in the form of cash The clear answer, no they don’t. The opposite is true Other studies have shown that the richer you are, the more drugs and alcohol you consume The lazy and drunk poor person is a stereotype rather than reality What about laziness? Universal basic income test runs done in Canada in the 1970s showed that around 1% of the recipients stopped working, mostly to take care of their kids On average people reduced their working hours by less than 10% The extra time was used to achieve goals like going back to school or looking for better jobs But if laziness and drugs are not a huge deal, Why doesn’t our current welfare state solve poverty Welfare or unemployment programs often come with a lot of strings attached Like taking part in courses, Applying to a certain number of jobs a month or accepting any kind of job offer no matter if it’s a good fit, or what it pays Besides the loss of personal freedom, these conditions are often a huge waste of time and only served to make the unemployment statistics Seem less bad Often your time would be much better spent looking for the right job continuing education or starting a business Another unwanted side effect of many welfare programs is that they trap people in poverty and promote passive behavior Imagine a benefit of $1,000 each month in a lot of programs if you earn a single dollar extra the whole thing is taken away If you take a job, that’s paying $1200 you might not only lose your benefits, but because of your taxes and another costs like transportation You might end up having less money than before So if you actively try to better your situation, and your total income is not improving or even a shrinking welfare can create a ceiling that traps people in poverty and rewards passive behavior A basic income can never be cut and therefore getting a job and additional income would always make your financial situation better Work is always rewarded instead of a ceiling it creates a floor from which people can lift themselves up But even if UBI is the better model, is it economically feasible? What about inflation? Won’t prices just rise making everything just like it was before? Since the money is not being created by magic or printers it needs to be transferred from somewhere It’s more of a shift of funds than the creation of new ones Hence; no inflation Ok, but how do we pay for it? There’s no right answer here because the world is too diverse How well-off the country is, what the local values are, Are things like high taxes or cutting the defence budget politically acceptable or not? How much welfare state is already in place and is it effective? Each country has its own individual path to a UBI The easiest way to pay for a UBI is to end all welfare and use the free funds to finance it Not only would this make a number of government agencies disappear, which in itself saves money, it would also eliminate a lot of bureaucracy on the other hand cutting them could leave many people worse off than before If the goal is to have a foundation for everybody there still need to be programs of some sort because just like countries, People are not the same The second way – higher taxes especially for the very wealthy In the US for example there’s been a lot of economic growth but most of the benefits from it have gone to the richest few percent the wealth gap is rapidly widening and many argue that it might be time to distribute the spoils more evenly to preserve the social peace There could be taxes on financial transactions, capital, land value, carbon, or even robots But UBI is not necessarily expensive According to a recent study a UBI of $1,000 per month in the US Could actually grow the GDP by 12% over eight years because it would enable poor people to spend more and increase overall demand What about the people who do the dirty work? Who will work in the fields, crawl through sewers, or lift pianos? If you don’t need to for survival, will people still do hard boring and unfulfilling labor? UBI might give them enough leverage to demand better pay and working conditions a study calculated that every extra dollar going to wage earners would add about $1.21 to the national economy While every extra dollar going to high-income Americans would add only 39 cents There would still be very rich and poor people but we could eliminate fear, suffering, and existential panic for a significant part of the population Making poor citizens better off could be a smart economic tactic For some this isn’t enough. They want a UBI large enough to live a middle-class existence If we set the financial obstacle aside, this idea fundamentally challenges, how our society is constructed By earning money, you earn the possibility to take part in society this determines your status and options But it also forces many people into spending huge chunks of their time on things they don’t care about in 2016 only 33% of US employees were engaged at work 16% were actively miserable and the remaining 51% were only physically present Would 67% of people stop working if they could? It would be unfair to portray work as just a chore work gives us something to do. It challenges us it motivates us to improve, it forces us to engage Many find friends or partners at work, we work for social status wealth and our place in the world We’re looking for something to do with our lives and for many people work gives them meaning There are other concerns with UBI If all welfare programs were exchanged for one single payment, this gives the government a lot of leverage individual programs are easier to attack or cut than a multitude or populist smite promise drastic changes to the UBI to get into power and a universal basic income doesn’t tackle all problems when it comes to equality Rents for example while $1,000 might be great in the countryside, it’s not a lot for expensive metropolitan areas which could lead to poor people moving outwards and the difference between rich and poor becoming even more extreme and of course, for some people, the concept of work itself not being essential for survival is appalling Conclusion So is the universal basic income a good idea? The honest answer is that we don’t know yet There needs to be a lot more research more and bigger test runs We need to think about what kind of UBI we want and what we’re prepared to give up to pay for it The potential is huge. It might be the most promising model to sustainably eliminate poverty It might seriously reduce the amount of desperation in the world and make us all much less stressed out This video was made possible by a Universal basic income provided by you, our viewers Ten thousand people around the world gift us a monthly income on patreon.com/Kurzgesagt You enable us to pay salaries and buy new hardware you enable us to make more videos And you enable us to spend more time on them Kurzgesagt would truly not be what it is today without your help You help us stay independent, and you give us the freedom to put quality before quantity Thank you so much

100 thoughts on “Universal Basic Income Explained – Free Money for Everybody? UBI

  1. This has gotten extremely relevant today, because those "disgusting repetitive jobs with low rewards" nobody wants to do are going to get replaced by robots anyways.

  2. Idea has its appeal but I'm going to challenge a couple of the points:
    1. it talks about the reason to work as being essentially for "personal fulfillment". That is an argument I've heard, but the other, bigger, reason, is b/c we actually need things accomplished/done. Perhaps if we all have personal robot slaves doing all of our work, work will truly be optional, but until then, we depend on other people to actually create/do goods and services. Shifting money around doesn't solve that. Money's value only exists b/c someone is willing to give you something in exchange, so simply giving everyone money doesn't actually produce wealth.

    2. re: prices not rising, it's true that with UBI there would not be monetary inflation (one definition of inflation), but just as we see whenever there's an influx of cash in an area, prices do rise b/c they *can*. If your landlord or the local shop knows you are getting more money, do you expect them to really just leave prices as is?

  3. Every human being should be entitled to something to eat and a safe space with a roof. It's abhorrent that almost a quarter of the way through the 21st century we're still clinging to the notion of "Work to survive", or rather "Work to exist". You are worth more than just your labour, and as a citizen you should be entitled to a basic level of living standards.

  4. They should pick a city and start this experiment. Obviously so as not to have every lowlife moving there for just a handout they'd have to have lived there for a certain amount of time already. The powers that be better figure this out quick before the automation and AI wave broadsides the world.

  5. All these objections have been positively dismissed by evidence form pilots in many countries during the last thirty years.
    An impartial inquirer into these questions need to read just one book: *Utopia For Realists* to be fully convinced of the necessity and feasibility of this step-change in social progress: Eliminate abject poverty and needlessly stressful existence.
    The trouble is that the hidden defenders of the current wage-oriented slave society will keep promoting these doubt-seeding "inquiries" to keep public opinion uncertain and therefore unsure.

  6. Great idea! Money for nothing. Funny to see that US/EU is getting more and more communist. Hello Comrads!

  7. Ubi is incredibly dangerous for the United States we are already in debt and we cannot afford upwards the 3 trillion dollars a year to give out free money. As much as I love this channel this video is heavily biased.

  8. Promises a balanced review of pros and cons
    Spends 90% of the time talking about benefits, 2% of time on cons, 8% counter-arguing the cons.
    This feels unusually unbalanced for this channel.

  9. inequality will cause social conflicts, and lead to chaos, now we have already see more and more financial inequality in our society, UBI may possibly the key to this problem, but do we have enough time and data to do the experiment

  10. 1:56 lol using a study from 1970. i have seen thousands of people who much rather stay at home and play WOW or video games all day. there wasnt that many form of entertainment back then.

  11. It's funny, but the point about 'poor moving out of cities' has been a regular part of life for a LONG time in the United States of America. heck, at this point tech companies are being gentrified out of parts of sillicon valley, by pot growers. (literally!) So that is nothing new.

  12. If we give everyone in the US $1000 a month that’s $12,000 a year multiplied by the US population of 327,000,000 that would cost us about 4 trillion dollars a year where do we expect this money to come from exactly considering the US federal budget is only around 4 trillion

  13. I think taxes should be based on the amount of worked hours not the total income so that people with a high hour loan pay more instead of people who work lots

  14. I'm for a UBI! It would help so many people, especially those in need of special care because of disability or illness, particularly in the US where often people don't go to the doctor simply because they just can't afford it.

  15. "Since money isnt created my magic or printers." Well it basically is created by magic. Money is created by banks in the form of debt. They type numbers into a computer when you take out a loan from the bank and act like youve paid the money back before you actually have. Thats called created money from nothing, and backed by nothing. Fiat money.

  16. 10 cent sales tax for every dollar…It is easier to calculate in your head and if rich people spend more, than essentially they are contributing more. Legalize certain drugs can also be charged a sales tax that goes into this program.

  17. The no inflation discussion was very weak, almost non-existent. I don't understand that part at all, and that's what I'm most concerned about!

  18. this is totally idiotic. If you are on the end that would benefit from a UBI you are also on the end that will not have any control of it. The sort of "security" it can offer you is dependent on the people who will be implementing the laws that will take that value from other people in the economy that will produce the wealth that is taxed. The security that this promises can better be attained with property rights and a total restriction on property taxes. think about it. if you have to pay hundreds in property taxes, school taxes, car taxes, etc etc, then you will quickly arrive at the amounts of money that you are talking about steeling from someone else to distribute to the UBI recipient. instead, remove the power from the people who will take it and give, and just leave us the fuck alone so we can be secure in our property first, not pay for all the shitty schools, and waste it on the counties that squander all the property tax proceeds, and everyone who you think would do well with a UBI will do even better with a free and clear property title that the state can't confiscate for tax delinquency. property rights are far more effective then UBI bull shit. just look at who peddles this crap. a NYC bar tender who auditioned for congress, a washed up sell out commie with bad hair, and countless other democrat morons. get of the socialism band wagon.

  19. I think it's a very smart Idea that advancements like A.I and Robotics can make even easier, I think all people deserve to have some basic needs and income to act like a ''blanket'' of ''safe net'' against poverty. From there you can try and achieve even more. The betterment of the condition of all of us is the very reason we created societies in the first place.

  20. As things are right now there are lots of people that can barley afford to go to work. With the costs of child care and the gas to get to work going to work just doesn’t seem worth it. With UBI more people would be able to afford to go to work.

  21. UBI would almost certain cause inflation, although its not printing more money or creating it from thin air it is changing the liquidity of assets which means the monetry suply is increased, hence increasing aggregate demand and making the price level increase too. This is inflation

  22. Nice… So now you open the borders, invite everyone to live out of the UBI of a single country full of working people who pay 50% tax income. Give it 20 years and just like that you have Nazi Germany again. Opress the working class and reward the lazy ones! 👍

  23. Come visit Argentina, and think again what you are saying, no one works and the ones that do are taked away 70% of their earnings. You just want your country to become a shitty socialist latinoamerican country, you are really smart.

  24. Do you now what is the problem with ubi or social plans, that it makes people work less than what they did before, that means less money to be taxed, that means highering the taxes for the "rich" what will make more people stop to work and live from a ubi. And this will go on untill everyone lives from a ubi and no one works, and that means a crisis, that is argentina today, whe are going through the more catastrofic crisis in our history and you are just feeding others countries politicians to copy mines. I jusy have to say it, you are a FUCKING RETARD.

  25. UBI is just a new name for the same old thing. Politicians promising to lower taxes. But people just realized that’s never going to happen.

  26. Obamacare subsidies also create an earnings ceiling due to the fear that if one makes more money, part or all of that Obamacare monthly subsidy will have paid back. In my case I get $998 a month as a subsidy…and all year I’m concerned about my varied self employed income and how it will all be when it’s settled up at tax time.

  27. People will squirt out more babies and consumption will go way up. Talk about killing the fucking planet . Im lazy and i like the idea of 1k a month but i care more about the environment and not having more people . Im more interested in the idea of an orgasmic suicide machine .

  28. Instead of giving lazy people money which will eventually run out why not just reduce income tax, and give tax deductions to companies for the amount of humans you employ. Make it cheaper to use human labor instead of automation.

  29. 8:08 This is a problem in Alaska where we have an annual payout to all residents (the Permanent Fund Dividend, or PFD). So much of our campaigning focuses on that one issue. They know that the average voter doesn’t care about actual governance, just how big of a check they’re getting.

  30. With UBI I would be less stress with college and how to pay for it. To much stress when you are going to college and working a full-time job just to scrape by

  31. My mom got hurt at work and had to be out of work for 2 weeks and here job didn't give her any compensation. With here working pay check to pay check, this caused here to be extremely behind on all here bills, plus the medical bill she got was ridiculously high. UBI would be great in this situation, she was so stressed and cried cause she was strapped cause the doctors said she couldn't work. But she felt like she had to even though she had hurt her back she felt like she had no choice or else she would be behind and not be able to pay her bills, which sucks that this is a Norm in our society with work and insurance.

  32. Scrap the shiddy welfare system and half the military. Even if we scrap half the military, we'll be spending 3x more than the second most powerful military. China or Russia, I forgot. Then, we'll have the money to fund UBI.

  33. I can work and still get $1000 per month? if Im married that's $2000 a month for the household? WOW!!!!!!! I would finally get my damn car fixed!, and not work 2-3 jobs just to have food on the table. We can also start saving up for a trip and a house. This is a great idea!

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