Basic Income and Social Sustainability in Post-Growth Economies

Abstract

AbstractA central task in efforts to identify pathways to ecologically and socially sustainable economies is to reduce inequality and poverty while reducing material consumption, which has recently inspired future post-growth scenarios. We build a model to explore the potential of a universal basic income (UBI) to serve these objectives. Starting from the observation that post-growth trajectories can take very different forms we analyze UBI in two scenarios advanced in the literature. Comparing UBI in a “local self-sufficiency” economy to a UBI in an “automation” economy, we show that although both scenarios satisfy central sustainability criteria, the impact of a UBI would differ greatly between these contexts. Our analysis shows that a UBI is less compatible with a labor-intensive local self-sufficiency economy than a capital-intensive, high tech economy. We conclude that the feasibility and attractiveness of a UBI in a post-growth scenario depends greatly on the specific characteristics of the economy.