The International Labour Organization (ILO) study shows a 1.6% drop in the global labour income share between 2004-2024, amounting to $2.4 trillion in lost wages.
This decline was accelerated during the pandemic, deepening income inequality.
The report highlights gender inequality, with a significant proportion of young women not in employment, education, or training.
The youth unemployment crisis is especially alarming for developing countries like India.
While automation and AI have created high-paying jobs, they have also led to jobless growth, further increasing income inequality.
Various countries and leaders have proposed UBI as a solution to tackle poverty and inequality.
However, previous attempts to implement it have faced challenges.
Universal Basic Income (UBI) is a social welfare policy in which all citizens of a country receive a regular, unconditional payment from the government
The core features of UBI are:
Unconditional: Everyone, regardless of their income, employment status, or other factors, receives the payment. There are no eligibility criteria.
Regular Payments: Payments are made at regular intervals (e.g., monthly or annually) and are designed to ensure a basic level of financial security.
Universal: Every individual in the country, or within a specified group (such as all adults), receives the payment, not just those who are poor or unemployed.
Basic: The amount is intended to cover basic living expenses, providing a "safety net" to meet essential needs like food, housing, and clothing.
Goals of UBI:
By providing a financial foundation for everyone, UBI aims to lift people out of poverty and reduce income inequality.
It can help stabilize the economy by ensuring that people have money to spend, which boosts consumption and demand.
UBI is often proposed as a solution to job loss caused by automation and artificial intelligence, providing income to those displaced by technology.
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