20+ Pros and Cons of Universal Basic Income (Explained)

In the upcoming days, in every sector, a huge number of people will be losing their jobs doe some kind newly introduced technologies. This has genuinely become a big concern, even for those who are working in a repetitive manner.

They also fear to lose their jobs someday soon, in the coming two to three decades. But, there is some form of automation, that has been introduced in the market place to promote new employment opportunities to offset the loss of jobs, but this time, it can be a little different.

Pros of Universal Basic Income:

Eliminate the stigma of getting cash benefits from the government:

Under the present systems that are currently prevalent in many places around the United States, there is a kind of negative stigma associated with the entire system of earning money from Govt. People get encouraged and they tend to work because of the paycheck.

The result of introducing universal basic income would be acceptable by all as it would be applicable to everyone irrespective of their existing income status.

This would be advantageous because this will provide the same initial point for everyone and will not be discriminated against because of their wealth.


With the implementation of UBI, every citizen will have enough money to pay for their food, health and other issues. Thus, the schemes that government issues to take care of these aspects will be eliminated which will also eliminate the organisations that take care of these schemes and the amount spent to keep these organisations going.

It would inspire people to continue working.

There is a big argument regarding the introduction of universal basic income and that is people might tend to leave their jobs as they will earning for free.

But actually, today’s economy has a completely different reality, and that is the amount provided to the people by Govt. for universal basic income, they cannot much far with the mere amount that they will be getting.

Instead, it will right to the day that Universal basic income will rather encourage and inspire people to keep working. This will let them earn some incentive besides working which can be great.


UBI will boost the purchasing power of the people with lower financial resources and thus aggregate the demand of products which will ultimately boost the economy for better.

It would provide people with the freedom to move.

The people who are in some kind of abusive relationship will or those who are in an unfavorable family condition tend to face a major problem, which is a lack of mobility.

Those who do not earn, are actually scared to move out of their places. But, with the introduction of universal basic, it will provide them the opportunity to step out of their places. This will be very helpful for those who are a victim of domestic violence.

It is reported that each year, more than 5000 woman becomes the victim of domestic violence or go through an abusive relationship with her spouse. This will minimize these problems to a great extent.


When every citizen can take care of their basic needs in their own way using the amount provided by UBI, it will focus on making their skills better and elevate their confidence and lifestyle which will help them get better jobs.

Cons of Universal basic income are as follows:

It could minimize the motivation of people to enter workforce.

Since Universal basic income will be offered to all the adults, there is a chance that a certain number of people start to think that they should stop working.

They might end up keeping the money given to them by the Government and decide to leave their jobs and no longer go to the workplace. As per the small amount of money is concerned, they may reduce their monthly expenses to an extent and may decide to live their lives that way.

Thus, many company industries may face a significant reduction in the number of employees and this can be considered as a great concern.

It could change the approach that society takes to buying and spending.

The most important idea regarding capitalism is that –money is regarded as something that a person earns. But, as Universal basic income, is concerned, it will make money something that will be given to the people by the government.

The money provided to the people without any kind of conditions and without asking for anything in return can cause society much harm as there would be a lack of innovation in society.

If people stop working, their creativity will be lost and society will not grow at the desired rate.


Economic growth depends of three aspects- increase of capitals, technological advancement and the growth of labour force. UBI would directly bring down economic growth as the labour force with naturally decrease as more and more people would opt out of working part-time jobs, which they otherwise would have done to support their family.

It could still generate problems with financial inequality.

The universal basic income will, without a doubt, help the families to afford their expenses but besides that, there would be financial inequality all across the society.

Everyone will be a certain amount of money from the government and the people whose potential will tend to remain poorer and those who are working in a good position will become richer. Though the actual idea behind introducing universal monthly income, that is to maintain equality, can be violated.

Financial inequality may, in turn, give rise to many discrimination problems in the society which will not at all be favorable for many low earning members.

The above-mentioned points are some of the major advantages and disadvantages of Universal Basic income and one could easily get an idea of how this could be a boon or a bane.


As UBI is applicable for every citizen and does not need any criteria to be fulfilled so that one can become a beneficiary of this scheme, this will put extra money in the pockets of those who already earn enough of suffice their expenses.


The direct distribution of money to the citizen will prevent any say of the government as to what the beneficiary does with the said money. If the money is not spent productively as to take care of one’s health and basic needs and instead spent on evil purposes, it beats the purpose of UBI.

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