Arguments in Favour and Against UBI
Favour
- Poverty and vulnerability reduction: Poverty and vulnerability will be reduced in one fell swoop.
- Better targeting of poor: As all individuals are targeted, exclusion error (poor being left out) is zero though inclusion error (rich gaining access to the scheme) is 60%.
- Insurance against shocks: This income floor will provide a safety net against health, income and other shocks.
- Improvement in financial inclusion: Payment – transfers will encourage greater usage of bank accounts, leading to higher profits for banking correspondents (BC) and an endogenous improvement in financial inclusion. Credit – increased income will release the constraints on access to credit ....
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