EPD

Question 1

What is Universal Basic Income

Answer 1

Welfare policy that guarantees a monthly income to everyone in the population regardless of their current income, employment or other factors

Question 2

What is the objective of UBI

Answer 2

Lower basic needs

Question 3

How UBI funded

Answer 3

Taxation or Borrowing

Question 4

Pros of UBI

Answer 4

Supports those out of work
Overcomes problems with means tested benefits
Always an incentive to work
Everyone is eligible
Supports socially beneficial activity
Can support entrepreneurship

Question 5

Cons of UBI

Answer 5

Can encourage laziness - living off benefits
Can reduce labour market flexibility - occupational and geographical mobility - lose the incentive
High costs and poorly targeted
Inflation concerns

Question 6

What is Wealth Tax

Answer 6

Tax on an individuals net worth or assets rather than income such as savings, property and financial assets

Question 7

Pros of Wealth Tax

Answer 7

Big revenue earner for Gov
Reduce wealth inequality
Can target windfalls
Can promote efficient reallocation of wealth

Question 8

Cons of Wealth Tax

Answer 8

Discourages investment and growth
Risks of emigration
Tax Loopholes
Admin Challenges on assets and valuation