What is UBI?#
In recent years, with the development of artificial intelligence, digitalization, and automation, traditional employment forms are undergoing significant changes. The social security system that relied on stable jobs is increasingly struggling to cope with new social risks. Against this backdrop, a seemingly simple idea that could potentially disrupt the entire welfare system has re-entered public view: Universal Basic Income (UBI).
What is Universal Basic Income?#
Universal Basic Income, as the name suggests, is a cash payment that the government provides unconditionally to everyone on a regular basis. This money is not relief, nor does it require you to have a job or tax record. Everyone can receive it, regardless of wealth, unemployment status, or income. This concept can be traced back to the 18th century, but it has sparked global discussion in recent decades.
UBI has several key characteristics:
- Regular payments: Usually once a month;
- Cash payment: Not in kind, nor in vouchers that can only buy specific things;
- Individual-focused: Rather than based on household units;
- Universal coverage: Regardless of income or wealth;
- No additional conditions: No requirement to work or apply.
In simple terms, it is "three no's": no investigation, no threshold, no attached obligations.
Comparison of Three Social Security Models#
1. Social Assistance#
Social assistance originates from charity, aimed at providing emergency relief, such as minimum living guarantees for the poor. However, applying for it usually requires an investigation into household income, willingness to work, etc., making the process complex and often leading to a "shame of poverty."
2. Social Insurance#
Examples include pension insurance, health insurance, and unemployment insurance, which typically require you to pay contributions and are linked to formal employment. This is not friendly to low-income groups without stable jobs, temporary workers, or freelancers.
3. Universal Basic Income#
The biggest difference of UBI is that it is decoupled from employment. Everyone is eligible to receive it, no longer needing to work for income. It does not replace assistance or insurance but may serve as a third pillar to supplement the existing system, and in some cases, even replace parts of the welfare system.
Why is Universal Basic Income Needed Now?#
1. Automation Replacing Jobs#
Robots and AI are replacing a large amount of repetitive labor, leading to a decrease in traditional job opportunities. Without work, it is difficult to sustain a living on wages. UBI can serve as a "safety net" in the technological era.
2. Complex and Inefficient Welfare Systems#
Current welfare systems often require complex reviews, bureaucratic processes, and various thresholds, which can lead to gaps in coverage or miscoverage. UBI has a simple structure, is more efficient, and can reduce administrative costs.
3. Eliminating Stigma and Enhancing Dignity#
Poor individuals applying for social assistance are often viewed as "lazy" or "failures," while UBI is available to everyone, avoiding such stigmatization and allowing everyone to have more dignity.
Three Reasons to Support Universal Basic Income#
1. Philosophical Reason: Freedom Rights#
The core idea of UBI is "real freedom." It is not about your right to work, but your freedom not to work; it is not about merely surviving, but your freedom to choose your way of life.
2. Ideological Reason: Reforming Capitalism#
Capitalism overly relies on labor for income, and UBI is expected to allow income to no longer be solely derived from "selling time," thereby liberating human resources and supporting low-paid but valuable work, such as childcare, volunteer service, and artistic creation.
3. Practical Reason: Responding to Changes in the Digital Society#
With the rise of flexible employment and increasing uncertainty in emerging industries, UBI may become a modern solution to ensure a safety net, preventing further polarization of wealth due to technology.
Can UBI Be Implemented?#
In theory, UBI is ideal. However, in practice, it faces numerous challenges:
- Financial burden: Where does the money come from?
- Institutional restructuring: How to connect with existing assistance and insurance systems?
- Social acceptance: Will people think it encourages "laziness"?
- Fair design: How to set standards? Will it exclude some marginalized groups?
Even so, several countries and cities around the world have already conducted UBI experiments, such as Finland, the Netherlands, Canada, and Japan. Although these pilot programs are not large in scale, they are significant for understanding its effects.
Implications for China#
As China faces an aging population, changes in employment structure, and the rise of platform and gig economies, the existing social security system also faces significant challenges. Although UBI is currently still a theoretical discussion in China, in the long run, it may be one of the directions for the evolution of future social policies.
Especially during major crises (such as the COVID-19 pandemic), the government has tested this idea by providing direct cash payments to stabilize society. In the future, we may see a more diverse, inclusive, and flexible social security system, with UBI being one option worth serious consideration.
Universal Basic Income is not as simple as "free money"; it is a systematic solution that responds to social changes and reconstructs distribution justice. Its core is not about replacing anything but rather supplementing and evolving. Regardless of whether it can be fully implemented in the end, it has already become an unavoidable key issue in global social policy discussions.
Citation: China Social Security Society