Guaranteed minimum income as percentage of national income

Economists Kalle Moene, director of ESOP – the Centre for the Study of Equality, Social Organization and Performance at the University of Oslo, and his Indian-American colleague, Debraj Ray, have called for countries to set aside 10 to 12 per cent of gross national income for a universal basic income, Phys.org reports. 

"We propose a minimum income for everyone as a fixed proportion of gross national income – Universal Basic Share (UBS)," they argue. "The scheme can thereby be introduced in all countries, poor as well as wealthy. It would function in India equally well as in Norway."

In India, this sum of money would be shared among just over 1.2 billion people, and each person would then receive a wage that corresponds to the current poverty line, while in Norway this would constitute approximately NOK 90 000 ($US10,700).

"The whole point is to link the payments to the country's income level. This has three important implications," Ray argues. "Firstly, the poor receive an amount that is independent of personal income. Secondly, the amount paid is automatically linked to inflation. Thirdly, people have no need to fight for the authorities to adjust the amount to keep pace with the growth in the national income."

"Why are these proposals being made now?

"The keywords are: unemployment, inequality, globalization and automation in manufacturing. Those who own the robots rule the world. 

"The universal basic income gradually increases as technological development forges ahead. The scheme means that everyone shares in the prosperity," they conclude.

SOURCE:

https://phys.org/news/2017-03-economists-minimum-income.html