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The Economic Impact of Universal Basic Income (UBI)
Author(s):
Apaar Chauhan
Designation:
Student
Country:
India
Abstract:
This review paper explores the potential economic impacts of Universal Basic Income (UBI) as a policy tool for poverty alleviation, reducing inequality, and promoting economic stability. The paper synthesizes findings from various theoretical models, pilot programs, and empirical studies to evaluate UBI’s effectiveness and its implications on employment, inflation, and economic inequality. Key results indicate that UBI, when tax-funded, can reduce wealth inequality and improve income distribution. While concerns about inflation and labour market disincentives exist, evidence suggests that UBI does not significantly reduce overall labour supply. Instead, it can empower individuals to pursue work aligned with their skills and passions. The review highlights the importance of complementary policies to manage inflationary risks and ensure economic stability. The findings suggest that UBI has the potential to reshape welfare systems and contribute to a more equitable, sustainable economy, but its success depends on proper implementation, financing, and complementary fiscal strategies.
Keywords:
Universal Basic Income (UBI), poverty alleviation, income inequality, employment, inflation,
economic stability, labour supply, tax reform, fiscal policy, social welfare
Domain:
Economics
Published In:
Volume 1, Issue 3, (November-December 2024)
Published On:
27 January 2025
Citation:
DOI:
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