Universal basic income (UBI)

basicexperimental

A regular sum of money paid by the state to everyone, regardless of whether they work, how much they earn, or what they spend it on.

In plain terms

Imagine that, similar to child allowance, a fixed amount arrives in your account every month, but not for a child, simply because you are a citizen of the country. You do not need to apply, prove financial need, or lose it if you find a job.

The idea is old, but artificial intelligence brought it back into the news. If software, autonomous AI agents, and robots take over more office and physical work, the question arises: how does the person whose job is done by a machine live? Basic income is one possible answer.

It differs from welfare in that it is not for those in trouble, but for everyone, from millionaires to the unemployed. Supporters say it is a safety net from which no one can fall. Critics argue it is unaffordable and could reduce the incentive to work.

How it works

The state sets an amount, typically around the subsistence minimum or lower (the latter is called partial basic income).
Every eligible adult receives this amount regularly, usually monthly, without an application, means test or anything required in return.
Money can be spent on anything and remains available even if someone works, starts a business, or studies alongside it.
The funding has to come from somewhere: taxes, merging existing benefits, revenue from natural resources or, according to newer proposals, taxing the profits of companies that produce with AI.
Since no country has introduced a full, livelihood-sustaining version, its effects are studied through limited experiments: typically a few hundred or a few thousand people receive it for one to three years (rarely longer), and they are compared with those who do not.

An everyday example

You read an article stating that a tech company leader believes AI will eliminate many office jobs and the solution could be a basic income. In the comments, one side writes that finally there is no need to fear for a livelihood, while the other asks "then who will work?". This debate is precisely about this concept.

Who is affected

employeeIf machines take over part of your work, a basic income could be the secure foundation to rely on during retraining or transition. → Work & HR

jobseeker, new graduateYou would not lose support when getting a job, so the system would not penalize you for taking work. → Work & HR

entrepreneur, executiveThe funding would probably affect you through taxes; in return, your customers could still spend money even if automation leaves fewer people living on wages.

lawyer, citizenWhether there should be a basic income, how much, and from what source is a political decision on which you, as a voter, must eventually form an opinion. → Law

A common misconception

MythIf everyone receives free money, people will stop working en masse.

In realityIn previous experiments, most participants continued working, with work hours decreasing only slightly. However, no one knows for certain what would happen in a nationwide, lifelong system.

Limits and risks

The cost is enormous: a subsistence-level amount for every adult would take up a significant portion of the budget, and there is no agreement on how to cover it.
The experiments are small and short, so they do not show how a permanent, nationwide introduction would affect prices, wages, and work morale.
If it replaces existing targeted support, those most in need (for example, people with disabilities) could end up worse off.
The prediction that AI will cause mass unemployment is itself disputed, so do not treat it as a fact when someone uses it to argue for basic income.

Similar, but not the same

social assistance – Aid is granted based on need, upon application and with conditions; basic income would be received automatically by everyone.
negative income tax – There, only those whose income is below a certain level receive state money, and the payment gradually phases out as earnings rise.
guaranteed minimum income – This only supplements income up to a certain level, meaning it is means-tested and not available to everyone.

Related concepts

Broader

social safety net, income redistribution, The future of work

Narrower

partial basic income, universal basic income pilot

On the edge

technological unemployment, automation, robot tax, negative income tax, labor market transformation, universal basic computing capacity

A brief history

One early precursor of the idea was Thomas Paine, who in his 1797 writing 'Agrarian Justice' proposed that every young adult receive a one-time sum from a common fund, while the elderly receive an annuity. This was not yet a monthly basic income in the modern sense. Better-known modern experiments include the 2017–2018 Finnish trial, in which 2,000 unemployed people received 560 euros per month. In 2016, the Swiss rejected its introduction by a large majority in a referendum.

Where things stand

By the end of 2026, no country pays a universal basic income that guarantees a living wage. Smaller universal payments exist (for example, the state of Alaska has paid an annual dividend to residents from oil revenues since 1982), alongside local, time-limited experiments. However, due to AI's impact on the labor market, the topic has re-entered public debate.

Status: 2026 November

Also known as

Universal basic income · basic income · universal basic income · guaranteed basic income · FNA · UBI · universal basic income · basic income

Sources

Basic Income Earth Network (BIEN)

This entry was machine-edited and has undergone machine expert review; the “In the news” section updates automatically from Agent Age stories.