Guaranteed Income? Really?

Have you heard? The Republican president of the United States proposed a plan for "partial basic income" and his plan passed the House of Representatives. In 1969.

President's Nixon's plan, which he called "the most significant piece of social legislation in our nation's history," died in the Senate and never became law. It hasn't really made a comeback in the US. But the idea of "guaranteed basic income" is already back in the news in Europe, because income inequality — exacerbated by COVID-19 — will become increasingly hard for the world's political leaders to ignore.

What's the idea? Governments could provide all (or just the neediest) citizens with a small amount of guaranteed regular income. Enough cash to survive. The "guarantee" is that checks keep coming even if the recipient has or takes a job. It's an attempt to strengthen the social safety net at a time when widening income inequality, the current deep economic dive, and sweeping technological change in the workplace, are fueling public misery and anger in dozens of countries.

Many governments have looked at this idea. Spain's left-wing coalition government has just introduced a basic monthly income for families pushed into hardship by coronavirus. In addition, Finland gave 2,000 unemployed people $600 per month in 2017 and 2018. The plan was halted because it didn't prove cost-effective. A new study finds that the experiment boosted the well-being of those who received the money, but it did little to boost the economy.

Denmark, Ireland, the UK, and Sweden are now working on short-term versions of the idea. Local governments in Canada, the Netherlands, Scotland, and the US have tinkered with longer-term plans. The so-called Permanent Fund Dividend in the US state of Alaska offers a modest form of basic income. Kenya is conducting a 12-year study on the subject.

Arguments for: Unemployed people sometimes refuse work because it makes no sense to surrender benefits to take a job that pays less. With a small guaranteed subsistence-level income, they can take work and get ahead, say supporters of the idea. The idea could prove less expensive than current systems of unemployment benefits, advocates claim, because those who take work will begin paying taxes. And schemes that give money to everyone, regardless of need, eliminate the expensive bureaucracy needed to track benefit eligibility, saving the government money. They also help the workers most vulnerable to automation of the workforce get the training they need to make the leap to new forms of work.

Arguments against: Give people money for doing nothing, and they'll continue to do nothing, say the idea's detractors. They'll become wards of the state instead of productive citizens. It's the welfare state gone insane. And the idea will be absurdly expensive at a time when debt burdens are already eating away at many of the world's governments. Another entitlement program is not the answer.

Bottom line: None of the various experiments with basic income has proven that it can accomplish what its advocates claim. But we do know that wealth inequality was fueling public fury in many countries even before COVID-19 sent the entire global economy into a tailspin.

The problem is real. Until a credible alternative emerges, experiments with basic income will continue in different forms in different places.

More from GZERO Media

- YouTube

If China, Japan, and South Korea formed a united front, what kind of leverage would they have in negotiating against US tariffs? I think they are heading in that trajectory. The question is, will it be enough to keep Syria stable and away from descending into civil war? Why does Trump want to take Greenland? Ian Bremmer shares his insights on global politics this week on World In :60.

President Donald Trump, seen here on the South Lawn of the White House in February, is set to unveil his "Liberation Day" tariffs.

REUTERS/Craig Hudson

T-Day has arrived. On Wednesday afternoon, Donald Trump’s reciprocal tariffs on US trade partners will take effect immediately after a Rose Garden announcement.

A giant screen in Beijing shows news footage about the People's Liberation Army (PLA) joint army, navy, air and rocket forces drills around Taiwan on April 1, 2025.
REUTERS/Florence Lo

Beijing conducted one of the largest and most provocative military drills ever around the island -- but why now?

President of Ukraine Volodymyr Zelenskyy speaks during a briefing, Kyiv, Ukraine, on March 28, 2025.
Ukrinform/ABACA via Reuters Connect

Vladimir Putin insists that Volodymyr Zelensky is no longer Ukraine’s legitimate president because his government has imposed martial law and delayed elections that were due in 2024.

President Donald Trump speaks from the Oval Office flanked by Commerce Secretary Howard Lutnick on the day he signed executive orders for reciprocal tariffs, Feb. 13, 2025.
REUTERS/Kevin Lamarque

Details of a group chat between senior administration officials that leaked last week – the so-called Houthi PC small group – provide allies, adversaries, and watchers with revealing insights into the administration’s foreign policy blueprint. Lindsay Newman explores the takeaways.

Proud Source became a Walmart supplier in 2021. Today, its team has grown by 50%, and it's the largest employer in Mackay, ID. Walmart supports small businesses across the country, and nearly two-thirds of Walmart's product spend is on products made, grown, or assembled in America. It’s all a part of Walmart’s $350 billion investment in US manufacturing, which helps small businesses grow and supports US jobs. Learn more about Walmart’s commitment to US manufacturing.

As Microsoft celebrates its 50th anniversary, Vice Chair and President Brad Smith sits down with company cofounder Bill Gates for a special episode of Tools and Weapons. They discuss Gates’ new memoir, "Source Code: My Beginnings," reflect on Microsoft’s impact over the past five decades, and explore why the next phase of the digital revolution is shaping up to be the most exciting yet. Subscribe and find new episodes monthly, wherever you listen to podcasts.