Unit 3 → Subtopic 3.9
Would A Universal Basic Income Solve Inequality?
Income inequality is a persistent economic issue that affects millions of people worldwide. One of the most widely discussed solutions is Universal Basic Income (UBI)—a system where the government provides all citizens with a fixed amount of money, regardless of employment status or income level. Proponents argue that UBI reduces poverty, empowers individuals, and provides a financial safety net, while critics claim it disincentivizes work, leads to higher taxes, and is economically unsustainable. This project challenges students to engage in an in-class debate on whether UBI is an effective solution to economic inequality.
Students will be divided into two teams. One team will argue in favor of UBI, emphasizing how it helps eliminate extreme poverty, provides financial security, and allows individuals to pursue education, entrepreneurship, or caregiving without the fear of financial ruin. They should examine real-world UBI experiments in Finland, Canada, and Namibia, where governments tested the impact of direct cash payments on economic stability and well-being.
The opposing team will argue against UBI, highlighting potential economic drawbacks, such as reduced workforce participation, inflation risks, and the need for substantial government funding. They should explore case studies where UBI programs were either unsuccessful or discontinued due to financial constraints, as well as theoretical concerns about whether people would still choose to work if they received free income.
A key focus of this debate is analyzing whether UBI is a viable long-term solution to economic inequality. Students should investigate different funding models, such as tax increases, wealth redistribution, or automation taxes, and assess whether these approaches would be sustainable in both developing and developed economies.
The debate will conclude with a class discussion on whether UBI should replace traditional welfare programs or if alternative economic solutions—such as progressive taxation, job guarantees, or targeted social programs—are better suited to address inequality. The goal of this project is for students to develop a critical understanding of the economic, social, and political implications of UBI and whether it can serve as an effective tool for reducing inequality.
Recommended Procedure:
Research the Concept of Universal Basic Income (UBI) – Study how UBI works, including its proposed benefits, potential drawbacks, and historical trials in different countries.
Examine the Economic and Social Effects of UBI – Analyze how guaranteed income could impact employment, poverty reduction, consumer spending, and government budgets.
Compare UBI Experiments Around the World – Investigate real-world trials in Finland, Canada, and Kenya to assess the outcomes of providing citizens with unconditional income.
Prepare Debate Arguments for Both Sides – Develop arguments supporting and opposing UBI, using data on cost feasibility, economic growth, and social welfare.
Engage in a Class Debate on UBI – Present well-reasoned arguments and consider counterpoints, assessing whether UBI could be an effective solution for economic inequality.
Suggested Sources:
Understanding Universal Basic Income and Its Purpose:
Investopedia: What Is Universal Basic Income? – https://www.investopedia.com
Khan Academy: The Economic Theory Behind UBI – https://www.khanacademy.org
2. Case Studies on UBI Trials and Their Impact:
The Balance: The Pros and Cons of Universal Basic Income – https://www.thebalancemoney.com
Harvard Business Review: Lessons from UBI Experiments Around the World – https://hbr.org
3. Economic Feasibility and Social Implications of UBI:
World Bank: How Universal Basic Income Could Reshape Economies – https://www.worldbank.org
OECD: The Potential Costs and Benefits of Implementing UBI – https://www.oecd.org
4. The Future of UBI in Addressing Economic Inequality:
IMF: Could UBI Replace Traditional Welfare Systems? – https://www.imf.org
United Nations: The Role of UBI in Reducing Global Poverty – https://www.un.org
Grading Rubric:
Total Points: __ /20