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Poverty

Poverty is a state or condition in which a person or community lacks the financial resources and
essentials for a minimum standard of living. Poverty means that the income level from employment
is so low that basic human needs can't be met.

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Universal Basic Income

Universal basic income is a government-guaranteed payment that each citizen receives. It is

also called a citizen’s income, guaranteed minimum income, or basic income.

The intention behind the payment is to provide enough to cover the basic cost of living and
provide financial security. The concept is also seen as a way to offset job losses caused by
technology.

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Plans differ on who receives the income. Some would pay every citizen, regardless of
income. Others would only pay those who are below the poverty line, whether they are
working or not. One proposal would pay just those left jobless due to robotics, a plan that
48% of Americans support.

The government sends the check, but plans differ on who funds the income. Some plans call
for a tax increase on the wealthy, while others say corporations should be taxed.

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Historical Review

In 1967, Martin Luther King Jr. said a guaranteed income would abolish poverty.That means
reducing income inequality as well.

Economist Milton Friedman proposed a negative income tax. The poor would receive a tax
credit if their income fell below a minimum level. It would be equivalent to the tax payment
for the families earning above the minimum level.

In 2018, Facebook co-founder Chris Hughes outlined his plan in his book "Fair Shot."He
argued that U.S. workers, students, and caregivers making $50,000 or less a year should
receive a guaranteed income of $500 a month.

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According to Census 2011, India managed to achieve a literacy rate of 74.04% as opposed to
64.80% in 2001. This notable shift also highlights an increase in female literacy over the
years. While the female literacy rate in India as per Census 2001 was 53.7%, Census 2011
recorded it at 65.5%. Though not radical but some progress has been made in improving
literacy in India especially after the implementation of free education in rural areas for both
men and women.

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Some Facts

1. India is home to the largest population of 287 million illiterate adults in the world. This
amounts to 37% of the global total.

2. 47.78% out of school children in India are girls. They will be calculated as illiterate
women in the next census and this will have an impact on the education of their children.

3. Bihar, Jharkhand and Uttar Pradesh are amongst the bottom five states in terms of literacy
of Dalits in India.

4. India’s literacy rate has increased six times since Independence. Though the literacy rate
has increased from 12% in 2001 to 74% in 2011 yet India has the world’s largest population
of illiterate adults.

5. The literacy rate of female Dalits in Bihar was 38.5% in 2011. It is far behind India’s
progress trend. It is still 30 years behind India’s national literacy Rate which was 43.7 in
1981.

6. 60 lakh children in India are still out-of-school.

7. 92% of government schools are yet to fully implement the RTE Act.

8. India is ranked at 123 out of 135 countries in female literacy rate.

9. India ranks fourth in the South Asian region behind Sri Lanka with a female-male ratio of
0.97 and Bangladesh with a female-male ratio of 0.85.

10. The percentage of women to the total number of school teachers has gone up from 29.3%
in 1991 to 47.16% in 2013-14.

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Proposal

We propose to implement UBI in India......

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Challenges

If everyone suddenly received a basic income, it would create inflation. Most would

immediately spend the extra cash, driving up demand. Retailers would order more, and
manufacturers would try to produce more. But if they couldn't increase supply, they would
raise prices.

Higher prices would soon make the basics unaffordable to those at the bottom of the income
pyramid. In the long run, a guaranteed income would not raise their standard of living.

Oren Cass, a Senior Fellow at the Manhattan Institute, says it would make work seem
optional.11 Many recipients might prefer to live on the free income rather than get a job.
They would not acquire work skills or a good resume. It could prevent them from ever
getting a good job in a competitive environment. It could reduce an already-falling labor
force participation rate.

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Sources

https://www.thebalance.com/universal-basic-income-4160668

https://www.oxfamindia.org/featuredstories/10-facts-illiteracy-india-you-must-know

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Thank You