Social issues world Habitat Day


Arguments Against The Idea



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Arguments Against The Idea

  • Some are against the principle of “giving money for doing nothing”. This maydisincentivise people towards work and make them lazy.

  • Fiscal conservatives are worried about the budgetary implications. This willrequire new taxes to be levied.

  • There is also a right-wing paranoia these days — the fear of the migrant hordes.

Recent Experiments

  • Last year, Switzerland had rejected the idea of giving citizens about $2,500 a month,but Finland, Netherlands, and the Canadian province of Ontario are planning atrial run.

  • Even India has seen its share of basic income experiments. As a pilot project,eight villages in Madhya Pradesh provided over 6,000 individuals anunconditional monthly payment (Rs. 150 for a child, Rs. 300 for an adult). Theresults were intriguing. Most villagers used the money on householdimprovements (latrines, walls, roofs). There was a seeming shift towardsmarkets, instead of ration shops, leading to improved nutrition, particularlyamong SC and ST households, and better school attendance and performance.There was an increase in small-scale investments (better seeds, sewingmachines, equipment repairs etc). Bonded labour decreased, along with casualwage labour, while self-employed farming and business activity increased.Financial inclusion was rapid – within 4 months of the pilot, 95.6% of theindividuals had bank accounts. Within a year, 73% of the households reported areduction in their debt. There was no evidence of any increase in spending onalcohol.


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