Universal Basic Income (UBI) The New Poverty-Solving Strategy?

Wed, 12 Jun 2024 00:00:00 +0000

There is a high level of poverty in the world, the question is how it can be based.

A new Universal Basic Income strategy philosophically promises to be the solution to the world's poverty problems. It is about empowering low-income people with a basic income to ease the economic burden so that beneficiaries can focus on their own financial and economic development.

Here's an example of a successful model. This strategy is used in the US for the development of agriculture through Food Stamps. The funds, instead of going directly to farmers, go to the beneficiaries so that they are the ones who distribute them through their needs. This goes beyond providing funds to beneficiaries.

Let's take a closer look at this. A beneficiary goes shopping when they see their shopping cart we find different products we strategically put a value of $100.00 without tax.

Let's separate the items: milk, meat, bread, eggs, corn-based cereal, lettuce, broccoli, tomato, apples and pebble, coffee, chocolate powder. To make it easy to understand the weight of each item equals the amount of the item to be produced. The price is the cost of the distribution chain of that item until it reaches the farmer. That's basically how federal funds are distributed in the US. Apply this to millions of beneficiaries and hundreds of thousands of items. Creating a demand and supply market.

Now imagine this example but in rent payment that you see impact hardware stores, plumbers, electricians, handyman, maintenance, etc. The economic impact on payment profits, transportation, etc.

The most important thing for UBI's success is the appropriate use of these funds from the beneficiary.

Below is a video on the topic to expand the concept.