Once Again about the Feasibility of Universal Basic Income

Abstract

The article examines the problem of the feasibility of a universal basic income (UBI) in modern society/world. Three main aspects of this problem are formulated: the feasibility of implementing UBI, taking into account the relationship between the positive and negative socio-economic effects of this measure; the degree of compliance of UBI with the institutional system of modern society; possibility of financing UBI in the amount of the subsistence minimum. The controversial impact of UBI on public welfare, economic growth and the lifestyle of members of society is revealed. Arguments are given in favour of the compatibility of UBI with the functioning of the labour market. A conclusion is drawn about the potential predominance of the positive effects of using UBI in the context of an established understanding of development as a person gaining freedom. There has been a tendency to provide socially significant benefits (education, medical care) to all members of society, regardless of their income level. Using the example of family capital analysis, the illegitimateness of linking social security only with the task of poverty reduction is substantiated. UBI is presented as a logical step in the implementation of the trend towards universal social support. The role of the minimum wage (SMW) as a state-guaranteed basic income for a worker is analysed. The need to pay UBI to employees along with the minimum wage has been questioned. The difference is shown between the current practice of using the minimum wage and the implementation of the minimum wage as a form of UBI (earnings in the amount of a share of the minimum wage for part-time employment, the possibility of wage arrears). Measures to overcome this difference are justified (salary at a level not lower than the minimum wage, regardless of the amount of time worked, payment of UBI from a special fund during the period of arrears in wages, with subsequent reimbursement of these expenses to the fund at the expense of the employer). It is proposed to include a state-guaranteed basic income as an element in all types of income from economic activity. Calculations are presented showing that the total costs of paying UBI in the amount of the subsistence minimum will amount to about a third of household expenditures on final consumption in GDP, that demonstrates the possibility of financing UBI. A conclusion is drawn about the fundamental feasibility of UBI in all aspects considered.