The Universal Basic Income Experiment

What do President Nixon, Milton Friedman and Martin Luther King, Jr. have in common? They all supported some form of universal basic income (UBI).

UBI is the idea that government provides a flat monthly income to citizens, no strings attached. There are many variations of it, but that’s the basic idea behind UBI.

Advocates argue that many jobs don’t pay workers livable salaries; employees can work full time and still be unable to afford rent and groceries. The concept is popular across political parties, and is supported by many liberals and libertarians. The tech industry is also interested as automation looms: “In a world where jobs are scarce, everyone will need a financial cushion,” explains host Avery Trufelman.

Some believe that instituting a flat income will eliminate or reduce the need for social services like food stamps, Medicare, and housing subsidies. Others believe it would give people a reason to learn other trades, or try new ideas. “If people don’t have to worry about food or shelter, many of them can go back to school,” Trufelman notes.

Finland put the concept to the test in 2017 to see whether UBI would encourage — rather than dissuade — people to work.

“The Finland Experiment” targets unemployment rates, which have reached 8.8 percent. Two thousand unemployed Finns between the ages of 25–58 were randomly chosen for the experiment. They were each given €560 per month. At the end of the experiment, researchers will compare those who received the income to unemployed Finns who did not receive it.

There are many critics of the experiment. Some believe the study is too limited, some say it will wipe out the need for the social systems already built, and others question how it will be funded.

The experiment is far from perfect, explains Trufelman, but it isn’t over. “Slowly, hopefully, Finland will use the design process to figure out if it’s possible or worthwhile to try radically new ideas,” she says.