Universal Basic Income Arguments In Favour and Against pdf Upsc Mains 2017

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Universal Basic Income Arguments In Favour and Against pdf Upsc Mains 2017

Universal Basic Income Arguments In Favour and Against pdf Upsc Mains 2017 – Hello friends Welcome to studydhaba.com .Here We are Sharing universal income arguments In favour and Against of Universal basic Income .

Universal Basic Income Arguments In Favour and Against pdf Upsc Mains 2017

UBI is a cash subsidy given to all citizens to meet the basic needs like food, housing, education, health and others. UBI can be additive or substitute to existing welfare schemes.

Universal Basic Income Arguments In Favour and Against pdf Upsc Mains 2017

Arguments In FavourArguments Against 
  1. Poverty reduction– persisting issue of low levels of income can be addressed; fastest means of reducing poverty.
  2. Women empowerment– UBI treats beneficiaries as ‘agents’; taking individual as a unit of beneficiary enhances position of women in households.
  3. Better targeting of poor– zero exclusion error (no poor beneficiary is left out).
  4. Insurance against shocks– provides safety net against ill health, low income & other shocks.
  5. Improved financial inclusion– more usage of bank accounts; profits to bank correspondent; facilitates access to credit from organised sector.
  6. Psychological benefits- guaranteed income reduces pressure of expenditure for basic needs.
  7. Administrative efficiency– replacement of other government schemes with UBI- lesser administrative burden.
  8. Labour market– flexibility, non-exploitation of labour; better working conditions since there is no fear of loss of benefits
  9. Direct Money transfer – With the help of  Universal basic Income there will Direct Transfer In bank Account of Poor.
  1. Conspicuous spending– especially by men on wasteful activities such as alcohol, gambling.
  2. Eroding labour productivity– might make people opt out of labour market; reduced labour supply.
  3. Gender disparity– men tend to exercise control over spending of UBI within the household.
  4. Implementation issues– introducing UBI will put too much stress on India’s financial system.
  5. Aspect of ‘universality‘- UBI has a high inclusion error (~60%) in which even the rich benefit from the scheme thus trumping the idea of income equality.
  6. Inflation– fluctuating market prices might severely curtail purchasing power of money.
  7. Impossible exit– once introduced, it will be impossible to withdraw the scheme.
  8. Financial Burden on government –  Very high fiscal cost on the government exchequer 
  9. It might lead to a reduction the labour-force participation rate, as people can earn without working.

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By |March 8th, 2017|UPSC 2017|

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