Hoover InstitutionStanford University
Why a Universal Basic Income Won't Work

Published September 21, 2021

Some people believe a universal basic income (UBI) is the next step in anti-poverty policy, but a UBI is a dangerous departure from centuries of welfare policy. By imposing no obligations on recipients, the UBI gives recipients less of a reason to work, develop their skills, or improve their situation in life. This failure to understand a key aspect of human nature makes the UBI a destructive policy for the very recipients it is intended to help.

Discussion Questions:

  1. What motivates people to improve their skills or their situation in life?
  2. What assumptions does a UBI make about human nature?

Additional Resources

  • Read “The Economic Impact of a Universal Basic Income,” by John Cogan and Daniel Heil. Available here.
  • Watch “The Reality of Universal Basic Income” on PolicyEd. Available here.
  • Read “The Case Against a Basic Income Guarantee,” by David Henderson. Available here.

Cast

John F. Cogan

John F. Cogan

Daniel Heil

Daniel Heil

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