Detractors condemned it as “money for nothing”. But the idea of a universal basic income (UBI) – on which Switzerland has just staged a nationwide referendum – is one of those radical policy ideas that finds supporters from both the left and right wings of politics.
The left wing likes the idea of government paying everyone a basic wage because it promises to end poverty. But even on the right it has supporters, who see the opportunity of getting rid of the bureaucracy associated with modern welfare states and replacing everything with a simple, one-time payment.
In the Swiss version, the monthly amount was relatively high, 2,500 Swiss francs (Dh9,400) per month – although that reflects the high cost of living in the country. In the end, the proposal was rejected, with 77 per cent opposed to it.
Yet the idea of a basic income is interesting to think about, especially as more jobs become automated. Swiss campaigners pointed out that over half of the total “work” in the country was unpaid: community work, carers and all the work done in the home. The UBI was meant to reward that.
Criticism revolved around the cost. The campaign didn’t explain how the UBI would be funded. And in every country where that discussion has taken place, funding and how the money would be distributed are the big questions.
But logistics are only part of it. The philosophical part is more interesting, and has to do with an age-old question that the UAE is now tackling in a new form: how do you make people happy?
An oft-quoted US study suggested that up to $75,000 (Dh275,000) a year, more money was linked to greater happiness. But above that, the correlation was weaker. Most of us know from our own experiences that while poverty is miserable, wealth does not directly lead to happiness.
And that’s the underlying problem with a UBI: it seems to suggest that happiness and money are linked. In actual fact, there are many things that lead to more happiness. Interesting work is one – being part of a team doing something you are passionate about. Charity. Strong relationships. A loving family. All of these are ways to increase happiness that don’t involve money.
At the root of the UBI is the belief that the government can, through redistributing wealth, make people happy. But there are some ways to be happy that the government can’t help with.
