Problems pertaining to the #UniversalBasicIncome are not limited to the economic sector only. While it is true that it takes a lot of resources to provide a basic income for everyone, setting this income is not a solution to tackle poverty.
One of the significant problems associated with this program is that it will do more bad than good for the poor people of the United States. The real problem will arise when an average lower-class American gets fewer incentives than what they are enjoying now. As a matter of fact, most people living below the poverty line in the United States of America get governmental support in many ways. With UBI in action, most of these programs will be eliminated, leaving poor people in an extremely vulnerable condition without services that they have relied on.
The funds provided in UBI to the poor will be mismanaged so much that it will ultimately go back into the pockets of those who already earn well. For instance, what is the point of giving that income to the people who are already a lot of money? With the rich people getting financial aid through the program, the money in the pockets of the poor people will be worth less than ever. Poor households will be at more risk than they are today.
As stated before, the UBI will result in the revocation of a lot of program that are assisting poor people in the United States. The government has to collect a lot of money to support UBI that will result in increased taxes on wealthy people, leaving the economy and the funding to the program itself in a vulnerable situation. Poor people will have no access to Medicare, unemployment and disability insurances, SNAP, Pell grants, income tax credit, or any other tax cut. With no governmental support other than UBI around, poor people will have no clue what to do.
Also, the cost of living is all over the map in America. A poor person living in New York will hardly be able to manage the living expenses on UBI compared to a person living in states where the cost of living is lower. Those who say that the UBI will not divert resources and should only be given to those in need deny the fundamental concept of UBI as its primary purpose is universality.
It is a sad reality that the poor will be exploited more under UBI and the income inequality will be further increased. Wealthier people will be getting the unnecessary advantage of the said program. Hence, to ensure that poor people don’t get exploited by those in the corridors of wealth, any program seeking universal income should be resisted.
