Is Keeping the Country in Shutdown a Strategy for Enacting UBI?

The concept of Universal Basic Income (UBI) has gained significant traction, particularly during the economic disruption caused by the COVID-19 pandemic. However, some argue that the prolonged shutdown of the country could be a misguided strategy to implement UBI, potentially leading to adverse long-term consequences. This article explores whether the current economic and social conditions support such an implementation.

The Current Economic Climate

As we navigate through the tumultuous economic phase brought about by the pandemic, the reality of UBI implementation is often clouded by immediate economic concerns. Individuals like “Im working” have seen their work conditions change and become more complex. While they may have seen their working hours increase, they also anticipate higher tax burdens and child support payments, making their financial situation even more strained. Their wife, on the other hand, is scheduled for a layoff during the summer and receives enhanced unemployment benefits. Despite this, she is making more than Im working.

There are also instances where employees have intentionally sought layoffs to benefit from unemployment benefits. According to “my information,” around 20 to 30 people at her company have chosen this route, raising questions about the incentive mechanisms within the current economic structure. UBI is criticized for potentially reducing the drive to work and produce, which in turn may lead to fewer goods and services being produced. Increased prices and potential shortages in the short term are real risks that could exacerbate existing economic challenges.

The National Shutdown vs. State-Level Actions

The narrative of a national shutdown is often misleading. In reality, the decision to maintain shutdowns is primarily made at the state level rather than by the federal government. The current situation is characterized by a lack of a cohesive national strategy. At the federal level, there is no overarching plan or guidelines for coordinating state actions, and there is a noticeable absence of support related to tracking or treating COVID-19.

President Trump's stance on shutdowns has been inconsistent. Initially, he was supportive of keeping states under tight control, but this position seems to have shifted. There is a growing impression that he may now be advocating for states to reopen. This inconsistency makes it difficult to attribute any ulterior motives to the prolonged shutdown without clear evidence of a coordinated national effort.

Given the varying approaches of state governors and health officials towards the pandemic, it is highly improbable that a covert effort to enact UBI could be orchestrated among them. These officials are facing unique challenges and making decisions based on the needs of their respective populations.

The Real Reason for the Shutdown

The primary reason for the shutdown cannot be ignored. The threat of widespread infections and fatalities on a scale that has not been seen before remains a very real issue. By the end of June, it is reasonable to expect that many people in the United States will have lost at least one relative or close acquaintance to COVID-19. This tragedy will undoubtedly lead to a better understanding of the necessity for the shutdown and the importance of reopening with caution.

The Case for UBI

While the aforementioned factors argue against an immediate UBI policy, it is crucial to understand the underlying issues that necessitate such a policy. The U.S. economic recovery has been uneven, with significant job losses and financial hardships, especially for low-income families. Issues of inadequate savings and insufficient social safety nets have become more pronounced, especially during the shutdowns.

Questions must be asked about the sustainability of the current economic system and who it benefits the most. The so-called "greatest economy ever" has paradoxically created a situation where many Americans are without sufficient savings to sustain them during even a short economic shutdown. This raises critical questions about the fairness and resilience of the current economic structure.

In conclusion, while the economic shutdowns may seem like an opportune moment to introduce UBI, the reasons behind these measures are rooted in public health concerns. Any discussion about implementing UBI must carefully consider the broader social and economic context, ensuring that any new policies are planned and implemented with long-term sustainability and fairness in mind.

Keywords: UBI, Universal Basic Income, Economic Shutdown, Public Health