Muslim World Report

Universal Basic Income: A Solution for Economic Inequality

Dr. Anthony Lindsay | Apr 3, 2025 9:39 AM | 7 min read | 1402 words

TL;DR: Universal Basic Income (UBI) has the potential to combat economic inequality by providing all individuals with a basic financial safety net, promoting entrepreneurship, and enhancing mental health. This post explores the implications of UBI, its potential benefits and challenges, and the roles of various stakeholders in its implementation.

Exploring the Potential of Universal Basic Income

The Situation

The global economic landscape is undergoing a seismic transformation as nations confront a widening chasm of inequality and the societal fractures it engenders. At the center of this discourse is the concept of Universal Basic Income (UBI), a policy proposal designed to provide every individual with a regular, unconditional sum of money, regardless of their other income.

The Urgency of UBI

  • As of 2025, global debt has surged to an astronomical $315 trillion, leaving individuals with an average burden of $40,000.
  • In economies burdened by financial insecurity—especially those affecting marginalized communities—UBI emerges as a vital intervention to alleviate suffering (Banerjee, Niehaus, & Suri, 2019).

Historically, the roots of UBI can be traced back to debates over welfare policies designed to combat poverty and economic insecurity, especially in post-colonial contexts where imperial powers have exploited local resources and labor (De Wispelaere & Stirton, 2012). The current economic crisis signals a return to the question of how to ensure dignity and agency for all individuals, particularly in developing nations affected by economic manipulation (Hanna & Olken, 2018).

Global Experiments with UBI

Numerous experiments across the globe—most notably in Finland and Canada—have piloted UBI, offering insights into its potential impacts on:

  • Poverty
  • Mental health
  • Economic resilience (Jaeger, 2020)

The implications of UBI extend beyond mere financial assistance; they hold the promise of transforming societies at their core. By establishing a safety net, UBI can liberate individuals from the relentless scramble for survival, fostering opportunities for creativity, entrepreneurship, and personal development.

Economic Impacts

Evidence suggests that rather than disincentivizing work, UBI could actually:

  • Increase labor supply by allowing individuals to pursue entrepreneurial endeavors without the paralyzing fear of financial failure (De Paz Báñez, Asensio Coto, & Sánchez López, 2020).
  • Transform competition from a zero-sum game into a collective endeavor aimed at innovation and societal progress (Nguyen, 2021).

Furthermore, UBI could serve as an antidote to the mental health crisis disproportionately affecting younger generations grappling with anxiety and depression amid financial instability (Schlosberg, 2004).

Anti-Imperialist Sentiments

Globally, UBI discourse is intricately linked to broader anti-imperialist sentiments. Many developing nations have suffered prolonged economic manipulation from foreign powers and multinational corporations. By providing a financial foundation for all, UBI can empower countries to reclaim agency over their economic futures and potentially reverse dependency cycles fostered by global capitalism (Federici, 2008).

As progressive policies gain traction globally, it is imperative to monitor pilot impacts, as their outcomes may inform policy changes and redefine our approach to economic justice (Johansson, 2019).

In a world characterized by the persistent specter of economic despair, UBI stands as a beacon of hope, signaling a potential pathway out of suffering. However, a critical examination of its implementation is essential to harness its transformative power effectively.

What If Scenarios

What if UBI is Implemented Successfully?

If UBI is successfully implemented globally, we could expect:

  • Significant reduction in poverty levels
  • Empowered individuals who can invest in health, education, and creativity
  • A surge in entrepreneurship, as people possess the resources to launch ventures without the fear of failure

Research indicates that basic income access can enable individuals to initiate projects—even those that do not guarantee immediate economic returns—ultimately leading to revitalized economies driven by increased consumer spending and innovation (Aceytuno, De Paz-Báñez, & Sánchez López, 2023).

In the long term, successful UBI implementation could reshape societal values:

  • Diminishing the stigma surrounding poverty
  • Fostering empathy and communal support
  • Evolving education systems to emphasize critical thinking and social responsibility

What if UBI Faces Significant Opposition?

Conversely, if UBI encounters fierce opposition—particularly from corporate interests and conservative factions—its potential benefits may never materialize. In this scenario:

  • Public discourse could deepen societal divides, with UBI proponents framed as advocates of “socialism.”
  • The political landscape might polarize, obstructing cooperation necessary for meaningful reform.

Such resistance could incite fears regarding UBI’s financial sustainability, overshadowing its economic benefits. Without a comprehensive regulatory framework, UBI could reinforce existing inequalities rather than alleviate them (Hanna & Olken, 2018). This underscores the necessity of grassroots movements advocating for UBI as a critical component of economic justice.

What if UBI Inspires Global Movements Towards Economic Justice?

Should UBI take root globally, its success could trigger broader movements advocating for comprehensive economic justice reforms. Increased dialogue about wealth redistribution and regulatory frameworks could challenge the excesses of capitalism, leading countries to adopt progressive taxation systems.

This could redefine international relations as marginalized countries demand fairer trade agreements and debt relief, leveraging their newfound agency for global equity (Sachs & Patel-Campillo, 2014). In this context, UBI could emerge as a unifying concept, driving collaborative efforts among historically oppressed nations.

Strategic Maneuvers

For Governments

Governments considering UBI must develop a comprehensive strategy addressing potential benefits and challenges. Key considerations include:

  • Robust fiscal sustainability frameworks
  • Diverse funding mechanisms, such as:
    • Progressive taxation
    • Carbon taxes
    • Wealth taxes

Transparency and public engagement are critical for building support; citizens must understand how UBI functions and its anticipated impacts. Pilot programs in various communities can serve as testing grounds, allowing governments to gather data on UBI’s effects on poverty, mental health, and economic growth while collaborating with grassroots organizations (Agyeman et al., 2016).

For Activists

Activists play a crucial role in shaping the narrative surrounding UBI. Key actions include:

  • Combating misinformation and stigma around financial assistance
  • Framing UBI as a human right and a necessary step toward economic justice (Peterson, 2005)

Engaging in coalitions with labor unions, environmental groups, and social justice movements can amplify the call for UBI. This collective effort is essential for countering narratives pushed by interests fearing disruption to their monopolistic control.

For Corporations

Corporations should engage in the UBI conversation not solely through the lens of potential profit loss but by acknowledging the long-term benefits of a financially secure consumer base. By advocating for UBI, they can align with ethical branding and corporate social responsibility initiatives, fostering a healthier economy that ultimately benefits their bottom line.

Encouraging dialogue about UBI can stimulate innovative employment models, leading to a vibrant economy driven by collaboration rather than competition (Dukelow & Murphy, 2022).

References
Agyeman, J., Schlosberg, D., Craven, L., & Matthews, C. (2016). Trends and Directions in Environmental Justice: From Inequity to Everyday Life, Community, and Just Sustainabilities. Annual Review of Environment and Resources, 41, 321-343. https://doi.org/10.1146/annurev-environ-110615-090052

Aceytuno, M. T., De Paz-Báñez, M. A., & Sánchez López, C. (2023). Assessing the Impact of the Implementation of Universal Basic Income on Entrepreneurship. Basic Income Studies, 18(1), 1-22. https://doi.org/10.1515/bis-2022-0022

Ashford, N. A., Hall, R. P., & Metaxas, J. A. (2020). Addressing Inequality: The First Step Beyond COVID-19 and Towards Sustainability. Sustainability, 12(13), 5404. https://doi.org/10.3390/su12135404

Banerjee, A., Niehaus, P., & Suri, T. (2019). Universal Basic Income in the Developing World. Annual Review of Economics, 11, 37-62. https://doi.org/10.1146/annurev-economics-080218-030229

De Paz Báñez, M. A., Asensio Coto, M. J., & Sánchez López, C. (2020). Is There Empirical Evidence on How the Implementation of a Universal Basic Income (UBI) Affects Labour Supply? A Systematic Review. Sustainability, 12(22), 9459. https://doi.org/10.3390/su12229459

Dukelow, F., & Murphy, M. P. (2022). Building the Future from the Present: Imagining Post-Growth, Post-Productivist Ecosocial Policy. Journal of Social Policy, 51(2), 357-375. https://doi.org/10.1017/s0047279422000150

Federici, S. (2008). Witch-Hunting, Globalization, and Feminist Solidarity in Africa Today. Journal of International Women’s Studies, 9(3), 1-14.

Hanna, R., & Olken, B. A. (2018). Universal Basic Incomes versus Targeted Transfers: Anti-Poverty Programs in Developing Countries. The Journal of Economic Perspectives, 32(4), 201-228. https://doi.org/10.1257/jep.32.4.201

Johansson, T. (2019). The Political Theory of Universal Basic Income. Annual Review of Political Science, 22(1), 249-271. https://doi.org/10.1146/annurev-polisci-050317-070954

McKay, A. (2001). Rethinking Work and Income Maintenance Policy: Promoting Gender Equality Through a Citizens’ Basic Income. Feminist Economics, 7(1), 1-30. https://doi.org/10.1080/13545700010022721

Nguyen, L. D. H. (2021). On the Implementation of the Universal Basic Income as a Response to Technological Unemployment. International Journal of Management Research and Economics, 1(3), 1-6. https://doi.org/10.51483/ijmre.1.3.2021.1-6

Peterson, V. S. (2005). How (the Meaning of) Gender Matters in Political Economy. New Political Economy, 10(4), 509-513. https://doi.org/10.1080/13563460500344468

Standing, G. (2008). How Cash Transfers Promote the Case for Basic Income. Basic Income Studies, 3(1), 1-30. https://doi.org/10.2202/1932-0183.1106

Sachs, C., & Patel-Campillo, A. (2014). Feminist Food Justice: Crafting a New Vision. Feminist Studies, 40(2), 395-423. https://doi.org/10.1353/fem.2014.0008

← Prev Next →