[image source: https://www.rappler.com/voices/imho/opinion-universal-basic-income-solution-all-philippines-problems]
This week we got to listen to our very own Dr. Trost talk about Universal Basic Income! He proposed a very interesting counter program he called Universal Basic Dividend, and he brought some really good points on why UBD is a better idea than UBI, and what needs to happen to ensure either can be implemented.
I am of the opinion that Universal Basic Income is something that is important and needs to happen in order to really fight the issues that help promote poverty. Something Dr. Trost and I agree on is the fact that with our current system, families and people are getting stuck in these inescapable cycles. They can't afford to pick school over a job so they can't get that higher education, which means they can't get that better job with a higher pay, which means they can't move up and, more importantly, move out to somewhere that has a lower cost of living (or, perhaps, better opportunities). I definitely think that by providing an income will allow for mass mobility for everybody currently bogged down. People won't have to abandon education for basic necessities, and people are finally given a chance to make their lives better. It's something so easy and basic but so important and, overall, it would stimulate our economy and our employments rates would skyrockets. It's a win-win for just about everyone!
Dr. Trost also proposed some interesting guidelines for his ideal UBD program. The first, which I also agree with, is providing money to every citizen regardless of age. I think this is great, considering that kids cost money and by providing their families with aid to help support that kid, there is no ultimatum and people can afford to take care of their families properly. Or even saving that money for college funds or healthcare, either way I think it's an important part that can't be left out and should be addressed. I also like the idea of making it an amendment and not just a policy. He argued that it would help prevent manipulation and abuse from politicians and I agree. I think that it would be very easy to twist this into something that only pushes down on lower-income communities and makes it more difficult to get out. I like the idea of making it an amendment, it just means that it has to be really well worded and adaptable to the future.
Some things I found interesting was the idea that the payment would be equal across all states, based entirely off of the previous year's GDP. Dr. Trost gives a couple arguments on this. For one, he says that this should only support and cover a person's basic needs, and if their cost of living should be greater than what is provided, they should get a job. He also says that if a person cannot afford to live in a place, this is supposed to allow mobility for them to go somewhere that they actually can afford. I'm on the fence about this one to be honest, especially since he further argues that with this program implemented, we should cut all other welfare programs. I guess my question would be, would the payment be taxed by state or just federally? Because if it's just federally, I am more comfortable with the idea, but if state takes are in any was influenced by the payments, then I'm more on the side that it should be influenced by the state.
The other thing I'm a little against is the flat tax rate for everyone, I think it should be like our regular tax system, based off of salary. Especially if we decide to have a flat payment system. I get where the argument is coming from, and I can see why that would make sense, however, this is a little disproportionate. $30 is not the same to everyone, both in terms of losing it and gaining it. If we are cutting welfare systems and only using this, we still need to help those who are under (or even near) the poverty line. They rely on every single dollar. I get that by making it a flat tax would also make it easier to make this an amendment and not a policy, but the disadvantage that come with it need to be acknowledged and just because it would be easier to make it an amendment one way does not mean that way is the best way.
Overall, I agreed with a lot of his points. I liked the talk and I like the idea. Big fan of Universal Basic Income.