Universal basic income and covid-19 pandemic
Salil B Patel, Joel Kariel
Abstract
The gulf between the wealthiest and poorest had been increasing even before the covid-19 destroyed the globe's health and economies. 1 Recent research indicates a growing depth of poverty, and women and children are the biggest casualties of this deepening divide. 2 The World Bank predicts the number of people in extreme poverty will increase by 70-100 million in 2021 alone. 3 Welfare programmes were often criticised as unable to deal with economic changes, such as the threat of automation and rise in flexible work.However, since March 2020, rising inequality and drastic changes to the labour market have forced governments to implement economic initiatives, such as basic income programmes, that previously would have been politically untenable.Spain, for example, has given €1015 (£900; $1200) a month to 850 000 households most in need, 4 and the US paid $1200 to all adults earning less than $99 000 annually. 5Evidence from the many pre-existing universal basic income schemes 6 suggests they may be a valuable addition to other initiatives to alleviate poverty and improve health outcomes globally.Universal basic income programmes aim to provide a net through which individuals cannot fall by providing unconditional payments to a given population.This is not a new invention, having been discussed in both economic literature and in regards to health inequality. 7In practice, many existing schemes have been guaranteed basic income, which is a means tested approach, as governments have dipped their toes in the water.