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In Short

A Universal Basic Income Would Set the Terms of a Progressive Agenda

Basic income

On a recent Thursday night at the San Francisco Mint鈥攁 building that once housed one-third of the nation鈥檚 wealth鈥27-year-old Stockton Mayor Michael Tubbs announced a bold, new plan to meet a critical need in his community: a guaranteed income pilot, the municipal demonstration of its kind. While recent discussions of similar approaches, commonly referred to as a Universal Basic Income, have been heralded in Silicon Valley as a measure to counterbalance the disruptive impact of technology on workers, the reception among anti-poverty advocates has focused on the potential disruption of the UBI itself on the programs currently tasked with meeting those needs. Acknowledging this tension,Tubbs said that the $500-per-month stipends, provided by the (SEED), would be designed to 鈥渆nhance鈥 rather than 鈥渞eplace鈥 the existing social safety net.

This careful framing of SEED belies the UBI鈥檚 origins as a centerpiece of racial justice and anti-poverty activism. In , the National Welfare Rights Organization鈥攁 coalition of thousands of welfare recipients across the country that was led by black women and served as a key partner in the 鈥攄emanded 鈥,鈥 emphasizing the disproportionate burden of unpaid care work on low-income women. Likewise, and the both advocated for a guaranteed income and full employment as material preconditions for social citizenship.

Today, however, anti-poverty advocates often regard a universal basic income as a threat rather than an inspiration鈥攁 defensive posture that鈥檚 been earned, but that also ultimately detracts from the goals the UBI was originally conceived to achieve.

In more recent decades, conservative for a UBI called for funding it by ending more targeted programs to reduce poverty. And today, what鈥檚 left of the social safety net is under constant attack, with modern iterations of these calls for 鈥渟implification鈥 masking massive cuts to support, all in the name of making programs less prone to 鈥waste, fraud, and abuse.鈥 House Speaker , for example, has criticized the complexity of current programs as a reason for their dramatic downsizing, while repeatedly suggesting that this system is providing a 鈥溾 for 鈥溾 communities lacking a 鈥.鈥

These seemingly innocuous, 鈥渞ace-neutral鈥 terms belie heavily racialized narratives about irresponsibility and criminality that have shaped public and political for the welfare state since its modern inception. And more than that, by framing poverty as a consequence of poor personal choices, rather than as the inevitable byproduct of a wide array of historical and contemporary structural inequalities, these narratives seek to justify a two-tier system of social policy that imposes stigma and restrictions on support going to low-income families, while also quietly subsidizing higher-income households for the same goals with few strings attached.

Over the past two decades, the impacts of these narratives on policy choices to restrict cash access by the lowest income families have been dramatic. Kathryn Edin and Luke Shaefer, more than households in the United States are surviving on less than $2 per day in cash per day as a direct consequence of welfare reform in 1996. This measure codified a paternalistic preference for vouchers and in-kind benefits over unrestricted cash. Meanwhile, complex applications, stringent work requirements, and stigmatizing processes like drug tests are used to deter eligible applicants to anti-poverty programs, effectively rationing access to benefits they qualify for. A missed appointment or incomplete form can result in sanctions, which may trigger a simultaneous loss of benefits across multiple programs. And for the Temporary Assistance for Needy Families program (TANF, or 鈥渨elfare鈥), initial sanctions are consistently , and benefits lower, in states with a higher proportion of black residents.

In light of all of its fundamental flaws, it鈥檚 clear that simply increasing the average TANF grant isn鈥檛 the solution to what鈥檚 essentially a cash problem. The Earned Income Tax Credit (EITC) provides a significant cash transfer to many low-income families once a year, but families without children receive a minimal benefit, and the credit itself is conditioned on paid work. In addition, although the Supplemental Nutrition Assistance Program (SNAP, often referred to as 鈥渇ood stamps鈥) is an important and effective program, its benefits can only be used for groceries, and these increase stigma, consumer preferences, and lead to accusations of 鈥溾 when low-income moms exchange their SNAP benefits for a lower level of cash in order to pay for essentials like .

Given the steady erosion and renewed stigmatization of the safety net over the past 20 years, and the dominant role of false narratives in driving these outcomes, merely pushing back against further retrenchment, while crucial, is insufficient. It鈥檚 also important to advance a new vision, one that asserts the equal value of all people and, by extension, rejects policies that tacitly endorse a hierarchy of deservingness.

Unconditional cash assistance鈥斆 la the Stockton demonstration鈥攃ould very well be an ideal vehicle for this goal.

In the long term, shifting toward an unconditional, cash-based system would offer a range of improvements: It would enable recipients to make the best choices about how to use their assistance, rather than making those choices for them; infuse cash into households in a predictable, regular, and accessible way; and, if structured as a universal benefit, effectively eliminate stigma by making receipt of assistance part of social citizenship.

A progressively structured UBI has the potential to do all of this鈥攂ut the devil, of course, is in the details. For example, if not set at a level that would actually enable recipients to meet their basic needs without waged work, a UBI could just employers that pay a low wage, or those profiting off of the gig economy while offering minimal benefits or protections to their workers. This helps to explain some of the directed toward the UBI鈥檚 most recent champions in Silicon Valley. A UBI also wouldn鈥檛 be a substitute for an adequate minimum wage indexed to inflation and for other fundamental labor protections. And perhaps the most crucial design question is how to pay for it; funding through an income tax is an obvious option, though more equitable and transformative proposals have called for funding by to or from the prison system.

There are also limitations to the potential of a UBI, no matter how well it鈥檚 designed, a reality that speaks to the need for a broader set of policies and movements to address economic inequality. On its own, a UBI won鈥檛 dramatically affect wealth inequality, including the yawning racial wealth gap that鈥檚 only since the Great Recession. A complementary proposal that would address wealth more directly is 鈥,鈥 a one-time, progressively structured transfer at birth to babies born in families below a certain wealth threshold (e.g., the median), which people could access without restrictions at age 18. Conceptualized by economists Sandy Darity and Darrick Hamilton, who also propose a modern (as an alternative to a UBI), the baby bond would be a 鈥渞ace-neutral鈥 policy that would disproportionately benefit black households鈥攖he exact inverse of wealth-building policies historically.

And finally, on its own, a UBI will only do so much to address power. It will give workers a 鈥減ersonal strike fund,鈥 as noted by former SEIU president Andy Stern. Similarly, a UBI would give people who are unemployed more room to find a good position, rather than taking a dead-end job out of necessity, and provide support for largely unpaid labor like care work. Still, it an economic system predicated on exploitation.

But a UBI will address cash.

And with record numbers of Americans living on less than $2 per day, and nearly of us unable to come up with $400 in an emergency, that matters. As Tubbs noted when asked about his fears for the project, 鈥淚 really don鈥檛 see any risk.鈥 Even if it fails, he continued, 鈥渇amilies got $6,000 a year.鈥 It鈥檚 critical that efforts to create a more inclusive and effective approach to poverty don鈥檛 play into conservative attempts to pare down the safety net. Yet by defending current programs on terms set by their opponents, we鈥檙e already doing that. It鈥檚 time, then, for new tactics, ones grounded in a collective vision of a radically different future.

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Aleta Sprague

Fellow, Family-Centered Social Policy

A Universal Basic Income Would Set the Terms of a Progressive Agenda