Cash against unconditional terms
Several countries have implemented “conditional cash transfers” (CCT): Mexico (Progresa/Oportunidades/Prospera), Brazil (Bolsa Família), Colombia (Familias en Acción), Philippines (4Ps), Jamaica (PATH), and USA (Opportunity NYC).
But what if it is done unconditionally?
The concept behind UBI is this: provide a modest, unconditional cash payment for all adults.
WHIon the other hand, it provides for the same structure, but scaled to a generous level meeting or excess of living costs.
Basics of UBI
UBI offers periodic, individual cash payments universally – with no tests, work requirements or conditions.
Recipients keep 100% of additional profits; it is a foundation on wages/investments.
Pilots (Alaska dividend, partial Iran) show reduced poverty, better health, but magnitude of financing constraints (eg GDP per capita cap).
Universal High Income (UHI): Is it even possible?
UHI maintains the universality of UBI, but increases the amount for “high” standards of living – fully covering rent, food, transport.
While critics point to practical limits (eg, a maximum of 100% GDP per capita), proponents see the “global carbon tax” as a massive windfall to fund UBI/UHI.
Additionally, proponents see AI and automation as enablers in the distribution of the wealth dividend.
But there are no full implementations and UBI’s evidence is only lower average amounts in a relatively small community and the implementation of a “global carbon tax” requires closer intergovernmental coordination, its “universality” is seen as pie in the sky.
Funding for UHI/UBI: Global Carbon Tax
Even more interesting is the idea of how to pay for UBI or UHI: Science Daily estimates that a “global carbon tax” could make it possible.
With such a global tax, it could generate $2-5 trillion a year to anchor financing with high basic income (UHI), scaling with price levels and coverage.
At $135/ton CO2 – generally in line with Paris goals — could generate a complete global scheme for emissions yields of 35-40 Gt ~$5 trillion per year initially.
As the global decarbonisation drive marches on and renewables grow, the carbon tax could be reduced. Emissions could be reduced by 20%-50% by 2030-2050.
Welfare system (instead of UBI)
Universal Income Support: Norway offers universal income insurance for most economic risks, creating a strong social safety net.
Social assistance (Economic benefit): This is Norway’s main minimum income scheme, which provides living and housing allowances to those on low incomes, but sometimes the amounts are insufficient.
Activation: Benefits often come with requirements to look for work or participate in employment programs, unlike true UBI, which is unconditional.
Sovereign Wealth Fund: Norway uses its oil wealth to fund its long-term welfare, rather than handing it out as a universal payment.
