Should the Government Give Everyone Free Money?

Introduction:

[00:00:43]

Welcome back everybody for another lesson. This lesson today, we're gonna have a look at a very interesting political and economic policy, which is called Universal Basic Income sometimes called UBI for short.

And this idea became quite popular over the last few years as there was a candidate in the American presidential election called Andrew Yang, and he had the idea of giving everyone in America a universal basic income.

[00:01:17]

A universal basic income is what you'll see on either the thumbnail or the kind of description, the title of this video, where the government gives everybody, including rich people, including the richest people, free money.

And the money is supposed to be given to these people to cover the basic needs of living.

[00:01:39]

So, the idea is to give people enough money so they can afford food, shelter, water, heating, electricity, transport - I guess. And the idea of this is to reduce and eliminate poverty once and for all.

So, even though the United States and the United Kingdom are incredibly rich countries, relative to other countries.

And there are people in those countries who are really rich and have lots of money; there are still lots of people who live in poverty.

[00:02:12]

For example, in the United Kingdom, we have 4.3 million children who are classified as living in poverty.

So, people think people… supporters of universal basic income think that if we give every single person some money, essentially, then they can spend that money. So, it goes back into the system.

[00:02:35]

It's not like they're just keeping it and the money gets taxed from people. And then it just sits in people's bank accounts, but people will spend that in the economy and the money will still continue to circulate.

So, people think that if we give everyone enough money to afford the basic things then we will completely eliminate poverty and it's quite an interesting idea.

[00:03:00]

I think it's quite a radical idea. It's not particularly a new idea because I think people were talking about this in the 1800s! Believe it or not.

But yes, universal basic income is an idea that people on the left of the political spectrum have thought about. When I have thought about this idea and when I have brought this idea up to people.

[00:03:25]

Often people just think it's really stupid and think, “why would we just give everyone free money? Why don't people just go to work and get jobs and pay for food and housing that way?”

And it's a pretty good argument against it. So, let's jump into the debate.

I'm gonna give three reasons why I think universal basic income is a good idea, and three reasons why I don't think it's a good idea.

For # 1 – Eliminate poverty

[00:03:49]

The first reason why I think universal basic income is a good idea is that it can eliminate poverty. So, I think poverty is an absolute scourge on society.

Key Vocabulary

Policy (n). Meaning: a plan of action agreed or chosen by a political party, a business, etc. For example, the company has adopted a firm policy against shoplifting.

Universal Basic Income (n). Meaning: is a social welfare proposal in which all citizens of a given population regularly receive a minimum income in the form of unconditional transfer payment. For example, the idea of universal basic income has gained newfound popularity in recent years.

Afford (v). Meaning: to have enough money to be able to buy or do something. For example, none of them could afford £50 for a ticket.

Relative (adj). Meaning: considered and judged by being compared with something else. For example, you must consider the relative merits of the two plans.

Circulate (v). Meaning: to send goods or information to all people in a group. For example, the book was circulated widely in Rusia.

Radical (adj). Meaning: new, different and likely to have a great effect. For example, a truly radical concept.

Scourge (n). Meaning: a person or thing that causes trouble, difficulty or mental pain. For example, the scourge of war/disease/poverty.

Fulfilling (adj). Meaning: causing somebody to feel satisfied and useful. For example, a fulfilling experience.

Dignity (n). Meaning: the fact of being given honour and respect by people. For example, the dignity of work.

Disgust (n). Meaning: a strong feeling of dislike for somebody/something that you feel is unacceptable, or for something that looks, smells, etc. Unpleasant. For example, the idea fills me with disgust.

Billionaire (n). Meaning: an extremely rich person, who has at least a thousand million pounds, dollars, etc. in money or property. For example, a Texas billionaire.

Unequal (adj). Meaning: in which people are treated in different ways or have different advantages in a way that seems unfair. For example, an unequal distribution of wealth.

Resource (n). Meaning: a supply of something that a country, an organization or a person has and can use, especially to increase their wealth. For example, the exploitation of minerals and other natural resources.

Taxation (n). Meaning: the system of collecting money by taxes. For example, changes in the taxation structure.

Provide (v). Meaning: to give something to somebody or make it available for them to use. For example, please provide the information.

Prevalent (adj). Meaning: that exists or is very common at a particular time or in a particular place. For example, the disease is more prevalent in Latin America.

Slide into (v). Meaning: to move gradually into a worse situation. For example, the industry is sliding into decline.

Safety net (n). Meaning: an arrangement that helps prevent disaster if something goes wrong. For example, a financial safety net.

I don't think people in the… I don't think… I don't want anyone anywhere living in poverty. I want everyone around the world to have a good housing.

[00:04:09]

I want them to be able to afford good food, clean water, never to be cold in their own houses, and to live fulfilling lives.

Some people probably don't want that for everyone, and they're evil, but not me.

I think that everyone should be able to live with dignity, and I think it's disgusting that people in economies like the UK or America live in poverty.

When there is so much wealth available and kind of… that exists within these countries and in certain people's bank accounts.

Then I think it's… it's so bad that we have billionaires while we also have people sleeping on the streets.

[00:04:48]

I just think that just shows an unequal society.

So, to eliminate poverty and to give everybody the resources to be able to live with dignity would… a simple way to do that is to give every single person enough money to live essentially.

The government can get this money through taxation and then they can give it to the people.

We know that even though some people do have jobs, that sometimes these jobs don't pay well enough for people to provide for themselves and also their families.

[00:05:21]

If there is a single parent and they have three children, then it's gonna be very difficult for that person to balance family life, looking after their children, while also working enough in a high skilled job to pay the money.

And, in the future when robots and artificial intelligence become more prevalent within society, they're gonna start taking people's jobs.

[00:05:43]

And what are we gonna do when more and more people become unemployed? I don't know. But unless new jobs are created, then more and more people may be sliding into poverty, which we don't want.

So, to give every single person a certain amount of money to provide them a safety net, so they'll never live in poverty, sounds like a good idea.

Against # 1 – Waste of Money

[00:06:05]

One reason why universal basic income is a bad idea is that it's stupidly wasteful. Why would we give money to people that don't need money?

Key Vocabulary

Wasteful (adj). Meaning: using more of something than is necessary; not saving or keeping something that could be used. For example, the whole process is wasteful and inefficient.}

Regardless (adv). Meaning: paying no attention, even if the situation is bad or there are difficulties. For example, the weather was terrible, but we carried on regardless.

Silly (adj). Meaning: showing a lack of thought, understanding, or judgment. For example, her work is full of silly mistakes.

If we had universal basic income in the United States, that means that every single person regardless of how much they earn gets given a certain amount of money from the government. Let's just say it's $1000.

[00:06:31]

Just for example.

Why would we give $1,000 to Elon Musk? Why would we give $1,000 to Mark Zuckerberg? Why would we waste government money by giving the richest people in society money?

While there are people that actually need it? It's completely wasteful.

So instead of… I would say the majority of Americans don't need an extra $1,000 into their bank accounts because they're not living in poverty.

[00:07:00]

Surely a better way of spending taxation or the money that you would… the money that you would need to gather to give to every single American or even anyone in any country.

Unless it's like Iceland where they don't have that many people. Not a dick, but yeah, it'd be easier to do it there. That's what I'm saying.

[00:07:21]

To raise that money in the United States, you're gonna have to give to everyone… you're gonna have to get a lot of money and to give that to every single citizen is just wasteful.

Most people don't need that money. So, isn't it better just to kind of gather less money through less taxation and then just give support to people that really need it? I just think it's a silly… it's just a silly idea.

For # 2 – A Safety Net

The second reason why I think universal basic income is a good idea is that it will provide a mental safety net to people. So, everyone knows that money can be a huge source of stress for a lot of people.

Key Vocabulary

Source (n). Meaning: a place, person or thing that you get something from. For example, your library would be a useful source of information.

Breakdown (n). Meaning: a period of serious mental illness in which somebody is unable to deal with normal life. For example, it became too much, and he had a breakdown.

Head start (n). Meaning: an advantage that somebody already has before they start doing something. For example, being able to speak French gave him a head start over other candidates.

[00:08:03]

Some people go through mental breakdowns because of financial situations. A lot of marriages end because of financial situations.

So, I think if there was a safety nets in place… so imagine everyone in society, knowing that regardless of how bad their life got.

If they… if they get fired from this job, if the company ends, if the company's profit stops and a business owner has to quit the business, then they'll never live on the streets.

That they'll always have enough money and support from the government that they will never live in poverty, that they'll always be given enough money to provide for themselves.

Even if it's a very basic level of living, just kind of having a house and enough food and water. Even if it's just that that will be a guarantee to people that however bad things can get it's not gonna be that bad.

[00:08:56]

And I think to have that kind of a safety net of like… a couple having an extra $2,000 a month would just be incredibly beneficial from like just a mental point of view.

Like money can be such a huge problem for people. If we just give people this head start, then it's gonna make people feel a lot more secure and happier.

[00:09:18]

And then… Why wouldn't we want a more secure, happy, and less poverty in society? Very simple way to do it. Give everyone free money.

Against # 2 – Increase in prices

The second reason why I think universal basic income is a bad idea is that businesses and landowners will just raise their prices.

Key Vocabulary

Inflation (n). Meaning: a fall in the value of money and a general increase in prices; the rate at which this happens. For example, an inflation rate of 3%.

Subsection (n). Meaning: a part of a section, especially of a legal document. For example, the case is described in subsection six below.

Restrict (v). Meaning: to limit the size, amount or range of something. For example, speed is restricted to 30 mph in towns.

Capitalist (adj). Meaning: based on the principle of capitalism. For example, a capitalist society.

Enterprise (n). Meaning: a company or business. For example, he’s in charge of an enterprise with a turnover of $26 million.

Random (adj). Meaning: done, chosen, etc. without somebody deciding in advance what is going to happen, or without any regular pattern. For example, the information is processed in a random order.

Drastic (adj). Meaning: extreme in a way that has sudden, serious or violent effect on something. For example, the government takes drastic measures.

Outgoings (n). Meaning: the amount of money that a person or a business has to spend regularly. For example, write down your incomings and outgoings.

So, imagine living in your country and the government say, “okay, we're gonna give you, you know, a €1000 a month, a £1000 a month, a $1000, whatever it is.

[00:10:50]

And then, there are no regulations or controls to make sure that landlords - people that own houses and they rent them out to people - don't…

If they're not measures to make sure that they don't increase them too much, they're just gonna think, “hmm, well, everyone in society has an extra £1,000, €1,000 in their bank accounts. Why don't we just raise the prices of our rent? Because they will be able to afford it.”

[00:11:15]

The same with businesses. Recently we've had high inflation in the United Kingdom relative to history, around 15%.

If you calculate all the different industries and subsections and one of the areas that we've had a lot of inflation is food.

[00:11:34]

And that's probably been the thing that I've noticed going up the most. So, when I go food shopping. I look what I'm buying. I look at the basket and I look how much it costs.

I think, “wow, I'm buying three items and it's £20? This is kind of crazy. Olive oil? I have to save for olive oil now!” I'm joking, but olive oil is expensive.

[00:11:55]

So, I think that recently some businesses like supermarkets have put up prices because everyone else is putting up prices.

Maybe the cost of the… the production of apples. We grow apples in the UK, or pears.

Maybe this hasn't increased, maybe it's actually the same amount to producing apples... produce apples, but everything else in the supermarket is going up, and also their competitors are putting up prices, so why don't they put up prices of apples?

[00:12:30]

I don't trust businesses. I don't trust landlords to keep prices low when they know that everyone has got an extra bit of money in their bank accounts.

Because the idea of a business is to create profit. I've got no problem with that.

But if they know that their customers and clients can pay more money for their services, especially services that they need, like food, like housing, then they will probably increase prices.

[00:13:00]

And most governments don't want to kind of restrict business. We live in a capitalist society. The whole idea is free enterprise, free markets.

People get to decide the prices. If customers think that's a good price, then they buy it. Government try not to get in the way. And why would they get in the way here?

[00:13:18]

Why would they just randomly decide to do it? Maybe because universal basic income is a huge policy, and it would change kind of society drastically. So maybe they would be forced to?

But yeah, I don't trust businesses not to raise prices. So, imagine everything… imagine the government gives you an extra $1,000 per month.

[00:13:41]

Let's just say euros. Cause I'm guessing most people are not gonna be American watching this. Imagine the government gives you an extra €1000 per month, and then your monthly outgoings increase by €600.

Because… these things that you need to buy: transport, taxis, housing, rent, food. They just up the prices and you just end up spending that money anyway and you don't get anything more.

[00:14:07]

It doesn't provide you with a safety net, you're just in exactly the same place, but the government gives you an extra €1,000 and you're spending that extra €1000 doing the same things that you were spending, buying the same things that you were buying before.

If anything, this is just, people getting taxed to pay for this really expensive system and then giving it to the people and then them spending more money on the people that got taxed… business… businesses.

[00:14:36] It's silly.

For # 3 – Pursuit of Passions

The third reason why I think universal basic income is a good idea is… because once the robots do take over our jobs, people will have to rethink how they spend that time and one way we can spend that time is by creating art, creating businesses.

And I think if we did have a universal basic income system, then I think people would take more risks and more gambles when it comes to their passions.

Key Vocabulary

Rethink (v). Meaning: to think again about an idea, a course of action, etc., especially in order to change it. For example, to rethink a plan.

Gamble (v). Meaning: to risk losing something in the hope of being successful. For example, he’s gambling his reputation on this deal.

Pursue (v). Meaning: to do something or try to achieve something over a period of time. For example, to pursue a goal.

Genuine (adj). Meaning: sincere and honest; that can be trusted. For example, she always showed a genuine concern for others.

Automation (n). Meaning: the use of machines and computers to do work that was previously done by people. For example, automation meant the loss of many factory jobs.

Take over (pv). Meaning: to begin to have control of or responsibility for something, especially in place of somebody else. For example, Paul’s daughter took over the job.

[00:15:06]

I think a lot of people work jobs that they don't really love. They may like it a little bit. They may like Friday afternoons. They may like the people they work with.

But the job that they actually do, they don't really like, they never really wanted it. It's not their passion. They have other interests that they care way more about.

And I think if people were given a safety net; a real safety net of… a guarantee that they can live with dignity regardless if they have a job or not. Then I think people would pursue their passions more.

[00:15:39]

They would be artists. They would dedicate their lives to sports, perhaps. Maybe they might not become a sports person, but maybe they'll just spend more time doing things that they actually love.

And I think this would be better for society, genuinely. Imagine, you know, without art, without films, without TV, without music, without paintings or our books.

[00:16:01]

Life would be pretty boring and if work is… if kind of the demand for work goes down in the next 50 to 100 years because of artificial intelligence, because of automation, because of robots, then maybe people will get… be given more free time to do the things that they love.

And they would be able to take risks with that and concentrate on that more if there was a guarantee and a safety net of a basic income.

Against # 3 – Work Motivation

[00:16:31]

The third reason why I think universal basic income is a bad idea is because it will disincentivize people to go to work.

Key Vocabulary

Disincentivize (v). Meaning: to remove the advantages of doing something, so people no longer want to do it. For example, the aim is to disincentivize illegal immigration.

Can’t stand (v). Meaning: use especially in negative sentences and questions to emphasize that you do not like somebody/something. For example, I can’t stand to watch him suffer anymore.

Stand (v). Meaning: to be in a particular condition or situation. For example, you never know where you stand with her.

Inclined (adj). Meaning: tending to do something; likely to do something. For example, they’ll be more inclined to listen if you don’t shout.

Imagine the government is paying you a certain amount of money for doing absolutely nothing. Regardless if you have a job or not, then why would you be motivated to go to work? Like I just said in my previous point, most people don't love their jobs.

[00:16:56]

So, if you don't love your job, and you think, “hold on a minute… I hate my boss, I hate my job, I'm unhappy, makes me stressed, I can’t stand speaking with customers, and I know that the government are gonna give me a €1,000 per month for doing nothing. I could be playing video games all day.

[00:17:16]

I could be watching YouTube. I could be sitting with my dog all day. Why won't I just do that?” And it makes sense. People go to work because they need to earn money because they need to live.

And if they get… given money from the government. Just for doing nothing. I don't think many people would probably go to work.

[00:17:39]

I think… Genuinely I think people will still go to work because they want extra money cause it buys some freedom.

However, due to this point people will be less inclined to do jobs that are important, especially like service work and also, I think people would work less.

They'd work part time like if… they would cut their hours in half. They would just work 20 hours a week for example and just get that extra €1,000 from the government. Sounds pretty good to me.

So yeah, I think people still need to go to work because people need to create products and services for us to buy.

[00:18:17]

Maybe not at the level that we're buying them, but still important that people go to work. Very necessary at this moment in time. The robots have not taken over yet.

So yeah, that's why, that's the third reason. People will stop going to work, or people will go to work less if the government just give the money for doing nothing.

[00:18:39]

Okay, that's the debate. The idea of universal basic income is an interesting one. I don't particularly know where I stand on this. I kind of can see the good and bad things about it.

So, I'm really curious about what you think. So, if you enjoyed it and you have some opinions on this topic, let me know in the comments.

[00:19:02]

I'm going to link down quite a few… kind of resources in the description because there is a lot of material on this online and loads of cool YouTube videos of people explaining the pros and cons of it.

So, I'll link it away. So, thank you for watching and I'll see you next time.