SOME residents of Baltimore, Maryland may be in line for $24,000 over two years under a new program.
Monthly payments of $1,000 will be made to 200 low-income residents who are parents in Baltimore, according to a message from Mayor Brandon Scott’s office.
Under the Guaranteed Income program, the city works with a local nonprofit organization, CASH Campaign of Maryland, which helps low-income Americans.
Low-income residents will be able to apply for the payments starting May 2, and to be eligible, applicants must be between the ages of 18 and 24, be biological or adoptive parents or guardians, and must have full or partial custodial responsibilities.
Additionally, applicants must have an income at or below 300% of the federal poverty level, which is based on household size. Thus, for a four-person household, the income level is $83,250.
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Robert Greenstein of the Center on Budget and Policy Priorities highlighted some apparent flaws of UBI.
Overall, Greenstein believes the biggest hurdle is funding UBI payments.
While some people think this investment could replace the current welfare state, Greenstein argued that universal payments to all citizens would redistribute income “upwards” rather than focusing on low-income groups who need it. silver.
What is the Citizen Dividend?
The Citizen’s Dividend is a suggested policy based on the Georgist premise that all people own the natural world, according to BasicIncome.org.
Everyone would receive monthly payments from the money generated by renting or taxing the monopoly of valuable land and other natural resources.
Could the implementation of the UBI cause inflation?
Those concerned about the implementation of a Universal Basic Income (UBI) program point to the possibility of supply-driven price increases.
They are also demanding that UBI provide individuals with more money to spend, according to an article by Marca.
Former presidential candidate Andrew Yang, on the other hand, explained why he thinks inflation wouldn’t be a major concern, telling CNBC: “Money in people’s hands for a few months of the year last – in my mind – was a very, very minor factor, in that most of that money has been spent for a long time and yet you see inflation continuing to rise.
“Everyone is worried about inflation. I am concerned that this is making the lives of a lot of Americans miserable, because it is a very difficult situation when your expenses are increasing and your income may not be keeping pace.
UBI Utilization Study
According to a study conducted as part of the Universal Basic Income initiative and quoted by local media outlet Finger Lakes 1:
- 28% of funding went to food
- 28% of funding went to services
- 24% of funding went to sales and merchandise
Which countries have UBI?
A universal basic income is being tested in a number of cities, states and countries in addition to the United States.
Some of them are:
- hong kong
How is UBI distributed?
According to GoBankingRates.com, one of the most controversial parts of Universal Basic Income is the possibility of individuals receiving money for no reason.
They write that due to the universal nature of a UBI, many people who would receive checks should not – multi-millionaires or those who can but do not want to work, for example.
However, without an eligibility-based application process, the program would be easier and cheaper to administer, possibly saving enough money on administrative expenses to cover more than just payments to people who would otherwise be disqualified.
Likely cost of UBI in the United States
In 2012, 163 million people worked in the United States, according to the Bureau of Labor Statistics.
Paying each of them $12,490 (the poverty line for one person in 2019) for that year would have cost $2.04 trillion, according to The Balance.
While some of that cost could be reduced by eliminating redundant social programs and other types of consolidation, it would almost certainly increase the national debt, according to The Balance.
What is the American Rescue Plan?
Biden’s emergency legislative package included funding for vaccinations, urgent and direct help for families affected by the Covid-19 problem and community support.
The president’s strategy included implementing a nationwide vaccination campaign, containing Covid-19, and reopening schools safely.
To combat the spread of the virus, the initiative has established community vaccination stations across the country, increased testing and monitoring, and provided paid sick leave, among other things.
The bill also addressed the investments needed to meet Biden’s goal of reopening the majority of K-8 schools safely and quickly within his first 100 days in office.
What’s in his hands?
A new guaranteed income program in Georgia will provide $850 a month for at least two years to more than 600 black women across the state, according to a community-based nonprofit implementing the program cited by 11-Alive/WXIA -TV.
According to the Georgia Resilience & Opportunity Pool (GRO Fund), the initiative, dubbed In Her Hands, would disburse funds from a total fund of more than $13 million.
MLK Jr pleaded for UBI, continued
King Jr said in a 1967 speech: “The dignity of the individual will flourish when the decisions concerning his life are in his hands, when he has the assurance that his income is stable and certain, and when he know he can afford it. seek to improve. »
Martin Luther King Jr advocated for UBI
Dr. Martin Luther King Jr, the legendary civil rights activist, grew up and preached in Atlanta’s Old Fourth Ward.
Soon, the same community will host a new guaranteed income experience bearing his name, CNBC reported.
Over the next two years, the initiative will provide more than $13 million in transfers to 650 black women in this community and other suburban and rural areas of Georgia.
Its name, In Her Hands, was inspired by a remark by Martin Luther King Jr.
Elon Musk on UBI
Solar City, SpaceX and Tesla founder and CEO Elon Musk told CNBC in 2017 that due to advancements in technology, he thinks UBI could be on the horizon.
All over the world, employees are losing their jobs because of automation.
As technology advances and we get closer to self-driving vehicles and artificial intelligence assistants, employment will be taken away from a talented workforce.
He said: “There’s a good chance we’ll end up with a universal basic income, or something like that, because of automation.”
Negative income tax, part two
It was hoped that by making these negative tax payments, the government would be able to reach more people than current support programs, reduce cost and complexity, and remove the disincentive to work posed by a tax rate. high tax.
In the 1960s and 1970s a number of experiments with negative income taxes were conducted, notably in New Jersey.
The concept, however, never caught on, according to US News.
What is negative income tax?
While universal basic income has gained traction, a negative income tax is another proposal to help reduce poverty in the country.
It was proposed by Milton Friedman, a professor at the University of Chicago, in 1962, and argued for the federal government to distribute money to people in low-income groups through the income tax system. Income.
Disadvantages of UBI
According to ProCon.org, the three main disadvantages of universal basic income are:
- The UBI deprives the poor of much-needed tailor-made help by taking money from them and giving it to everyone
- It’s too expensive
- UBI reduces work motivation, causing economic downturn and labor and skills shortage
Benefits of UBI
According to ProCon.org, the three main benefits of universal basic income are:
- UBI improves physical and mental health while reducing poverty and financial inequality
- UBI Leads to Increased Job Growth and Reduced School Dropout Rates
- UBI provides a source of income for non-working parents and caregivers, empowering women in historically unpaid jobs
History of Universal Basic Income
In a literal sense, UBI’s intellectual history goes back about half a century. However, over the past two centuries, the concept that the government should somehow subsidize everyone’s profits has resurfaced as:
- Citizen’s dividend
- social credit
- national dividend
- Demogrant (a grant based on the demographics of a population)
- Negative income tax
- Mrevenu (also called guaranteed minimum income)
Few of these plans meet the traditional basic income concept, and they are very different from each other. They do, however, have something in common.
Guaranteed income systems geared to certain income levels cannot overcome the deficiencies in public support and other benefits that a universal, unconditional cash transfer system can.
Here are the reasons why there should be UBI programs nationwide:
- If programs target low-income families exclusively and not the community at large, they will deteriorate over time.
- Universal systems have the potential to help everyone; but, as people’s circumstances fluctuate, it’s hard to tell who needs it based on a single number or a single moment in time.
- Means testing involves a significant amount of administrative time and money; UBI would be much more profitable.