UBI Project — Universal Basic Income Explained

The first argument

America has the wealth to end poverty right now.

Ending poverty in America — lifting every person above the poverty line — would cost $288 billion a year. That is less than the Pentagon budget, less than half of what Americans donate to charity annually, and less than 1% of GDP. Federal Safety Net

We already spend $481 billion a year on welfare programs that haven't ended poverty in 50 years. The money exists. The system is broken. US Census 2024

$288B annual cost to end poverty entirely Federal Safety Net

$858B 2024 US defense budget — 3× the poverty gap DoD

$557B Americans gave to charity in 2023 — nearly twice the poverty gap Giving USA 2024

The full poverty argument →

The second argument

Productivity grew. Wages didn't.

Since 1979, worker productivity has risen 90% while typical compensation grew only 33%. The cost of housing, healthcare, and childcare have risen far faster than wages — yet the gains from that productivity went to shareholders and executives, not workers. Economic Policy Institute

A UBI is a partial correction of that transfer. Workers helped build the economy that exists today. A guaranteed floor is the overdue return on that contribution.

Productivity vs. hourly compensation since 1948

1948–2014 · Economic Policy Institute

+90% productivity growth since 1979 EPI

+33% typical worker pay in the same period EPI

+231% median home price increase since 1980, adjusted for inflation Harvard JCHS

The full wages argument →

The third argument

Automation is eliminating jobs. Retraining programs don't work.

AI and robotics are eliminating entire job categories faster than new ones appear. Government retraining programs have a dismal track record — most displaced workers do not successfully transition through them.

The same automation that displaces workers creates extraordinary wealth. A UBI distributes a share of those gains back to the workers and communities that made it possible.

400M jobs potentially displaced globally by 2030 McKinsey

47% of US jobs at high risk of automation Oxford Martin

$15.7T projected GDP boost from AI by 2030 — wealth that should be shared PwC

The full automation argument →

The fourth argument

A guaranteed floor enables work worth doing.

60% of Americans cannot cover a $1,000 emergency from savings. When you cannot afford a month without a paycheck, you cannot leave a bad job, take a risk on a business idea, go back to school, or care for a family member. Financial precarity removes choices. Federal Reserve

1 in 4 American workers held gig or contract work in 2024 — most with no health insurance, no retirement savings, and no unemployment protection. A guaranteed floor transforms precarious work into a viable starting point rather than a trap. It creates space to pursue entrepreneurship, education, care work, and anything else the market undervalues. ADP Research

60% of Americans cannot cover a $1,000 emergency from savings Federal Reserve

1 in 4 US workers held gig or contract work in 2024 — mostly without benefits ADP Research

Higher entrepreneurship rates in countries with stronger safety nets than the US OECD

The full worker power argument →

The idea

So what exactly is Universal Basic Income?

UBI is a regular cash payment to every adult citizen — no means-testing, no work requirements, no strings attached. The same amount whether you're a CEO, a caregiver, or between jobs. It's a floor, not a ceiling.

It's a 400-year-old idea with supporters spanning the entire political spectrum — from libertarian economists who want to replace the welfare bureaucracy, to labor leaders who want to recognize unpaid work, to tech founders who see it as the answer to AI job displacement.

Progressive Left Conservative Right Libertarian Tech & Futurist

Notable Americans who have proposed it — click each for their own words:

MLK

Martin Luther King Jr. Civil rights leader

Thomas Paine Founding Father

Milton Friedman Economist

Mark Zuckerberg Meta CEO

Sam Altman OpenAI CEO

Andrew Yang Politician

Andy Stern Labor leader

Bernie Sanders Senator

Full history, people & politics →

Real-world proof

It's not theory. It's already working.

Dozens of controlled experiments across the US and the world have tested basic income with real people and real money. Here are three of the most significant.

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Alaska Permanent Fund

Every Alaskan has received an annual oil dividend since 1982 — no application, no conditions. The longest-running basic income program in the world.

15–25k residents kept out of poverty each year ISER

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Finland Pilot

2,000 unemployed citizens received €560/month for two years with no conditions. A government-run, peer-reviewed randomized trial.

↑ Wellbeing less stress, more trust, equal employment Finnish Ministry

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OpenResearch Study

1,000 low-income Americans received $1,000/month for 3 years. The largest randomized UBI trial in US history, funded by Sam Altman.

+$169/mo more on food, rent & transport OpenResearch

See all pilots & compare to existing welfare →

The hardest question

But how do you pay for it?

It's the first objection everyone raises — and it deserves a real answer. UBI can be funded in multiple ways, each with different trade-offs, different winners and losers, and different political coalitions behind them.

From a wealth tax to a VAT to an automation levy to oil dividends — the funding question is where the most interesting policy design happens. Use our interactive calculator to build your own UBI and see exactly how the math works.

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Wealth tax

Tax on assets above a threshold, paid by the top 0.1%

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Value-added tax

A consumption tax used by most of the developed world

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Automation levy

A tax on companies that displace workers with machines

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Resource dividend

Like Alaska's oil fund — citizens share in common resources

Build your UBI funding plan →

Interactive calculator · No sign-up required · All estimates clearly sourced

Find your fit

Which UBI model fits your values?

Answer five quick questions and we'll suggest the UBI proposal that best matches your priorities.

1 of 5 — What matters most to you in a safety net?

2 of 5 — How do you feel about work requirements?

3 of 5 — What worries you most about a basic income?

4 of 5 — Who should receive a basic income?

5 of 5 — How would you prefer UBI to be funded?

Common objections

Myth vs. reality

UBI attracts strong reactions. Here are the most common objections and what the evidence actually says.

"People will just stop working."+

Reality: In Stockton, full-time employment among recipients doubled from 28% to 40%. SEED In Finland, work rates were nearly identical to the control group. Finnish Ministry Most people continue working for purpose, social connection, and additional income.

"It would cause runaway inflation."+

Reality: Inflation depends on how UBI is funded. If redistributed from higher earners, no new money enters the economy. Most serious proposals use tax reform, not money printing. Roosevelt Inst.

"We can't afford it — it would cost trillions."+

Reality: The gross cost is not the net cost. Most proposals replace existing welfare programs and are funded through new taxes. A Roosevelt Institute analysis found a $1,000/month UBI funded by a VAT could be roughly revenue-neutral. Roosevelt Institute

"People will spend it on drugs and alcohol."+

Reality: In Stockton, top spending categories were food, utilities, and car repairs. A World Bank meta-analysis of 19 countries found the average effect on alcohol and tobacco spending was slightly negative. Evans & Popova

"It's a socialist policy."+

Reality: Milton Friedman (conservative economist) advocated a negative income tax. Friedman Friedrich Hayek supported a minimum income floor. UBI has genuine libertarian credentials — it replaces bureaucracy with a direct cash transfer.

End poverty and create a
steady floor for a changing economy