For Business

For business, it would boost profits and investment as the money is spent into the economy, increasing the value of each business

For the low-paid, a UBI would provide a substantial wage increase - without cost to employers, avoiding the trap of ‘cost-push’ inflation.

As automation and virtualization drop costs, the UBI will sustain demand, even as some people lose earned income.  A UBI could even promote automation.

With their basics covered, more people may be willing to work fewer hours, sharing the available work with others – important as automation takes hold. Spain is already looking at a 4-day work week, with The Australian reporting other initiatives.  This flexibility would remove the need for businesses to manage absences, or employ temporary labour at extra cost, as the people who are job-sharing can work out how to cover absences between them.

Trials have shown increased labour force participation arising from a greater confidence to go out and seek a job without any concern about the loss of benefits - increasing the pool of labour for business.

Without the ever-present threat of poverty due to job loss, some studies show conscientiousness and agreeableness improve significantly.

A UBI would free business from engaging with applicants who apply simply to meet their ‘mutual obligations’, without any real prospect of getting the job.

For the Economy

Despite everyone receiving the same weekly amount, the UBI can be targeted to the neediest in the community by treating it as income under the current welfare system, and by recovering it on a sliding scale from earned income via the tax system. This ensures the payment is ‘universal and unconditional’, while the recovery of the UBI based on income ensures equity, while also limiting inflationary pressures.

The UBI would not only help its recipients, but it would also help local businesses, indeed whole communities, to remain viable as the money is spent in regional towns and depressed areas of our cities that have low income levels - especially as more people choose, and are able, to work remotely from home.

While the immediate benefits of the UBI would flow to individuals, local businesses and communities, the money would soon percolate through the whole economy increasing turnover and profit, driving investment and employment nationwide.  While this is a positive in economic terms, it also highlights the need to shift to a sustainable circular economy (topic for another day).

A broader range of people would have the security and mental space to start new businesses and explore new creative opportunities.

With the UBI replacing some debt-based money with newly created debt-free money – it would help to stabilize the economy by lessening the need for individuals, businesses and government to borrow to finance all economic activity. This would mitigate the business cycle and reduce financial stress.

While marginal, the evidence is again positive, showing some small increase in savings and home ownership.

Due to the improvement in cognitive ability and the time to focus on ‘self-improvement’, a UBI will help to lift the overall level of education, enhancing productivity and entrepreneurship.

By enhancing entrepreneurship and facilitating automation and providing a better educated and more flexible and committed workforce, due to the underpinning security provided by the UBI.