While guaranteed basic income (GBI) programs are making headlines across the US, there’s an even more impactful policy gaining traction: universal basic employment (UBE). This approach could offer a more sustainable solution to economic challenges and garner bipartisan support.
The Rise of Guaranteed Basic Income Programs
Across the United States, cities and states are experimenting with guaranteed basic income programs. These initiatives provide regular, unconditional payments to individuals in need. The goal is straightforward: alleviate poverty and offer financial stability.
- Key Examples: From Denver’s homelessness relief efforts to parenting support in Baltimore, over 150 programs are testing this approach.
- Current Popularity: The concept of no-strings-attached payments is gaining popularity, with advocates arguing it helps families overcome economic hurdles.
However, while GBI has its merits, it might not be the only answer.
Universal Basic Employment: The Next Step?
Universal basic employment is emerging as a compelling alternative to GBI. This policy ensures that every individual can access a job regardless of the state of the economy.
- Concept Overview: According to Pavlina Tcherneva, an economics professor at Bard College, a job guarantee acts as a public option for employment, providing a basic job to everyone.
- Economic Cushion: With the recent jobs report showing an uptick in unemployment to 4.3%, a job guarantee could act as a buffer against economic downturns.
Benefits of Universal Basic Employment
UBE promises several advantages over GBI:
- Long-Term Stability: Providing a job ensures sustained income and employment, which can lead to long-term economic stability.
- Enhanced Community Engagement: By focusing on community-based jobs, UBE can boost local economies and ensure that workers are engaged in meaningful work.
- Reduced Turnover: Jobs provided under UBE can lead to lower employee turnover and fewer absences due to external factors like childcare or transportation issues.
Cleveland’s Bold UBE Pilot
Cleveland is set to launch the first American UBE pilot program in 2026. Here’s a snapshot of the plan:
- Program Details: 100 participants will be offered jobs paying $50,000 annually for three years. This wage is designed to eliminate the need for additional public assistance.
- Local Partnerships: The program will work with both public and private employers to provide community-based jobs, including roles in small businesses and nonprofits.
Devin Cotten, the program’s founder, believes this model can gain support across the political spectrum. He argues that UBE could serve as a bipartisan solution by focusing on work as a means to economic stability.
Historical Context and Future Potential
The concept of guaranteeing jobs is not new:
- Historical Roots: Former President Franklin D. Roosevelt advocated for the “right to a useful and remunerative job” in his 1944 State of the Union Address.
- Legislative Support: While figures like Sen. Bernie Sanders and Rep. Ayanna Pressley have pushed for federal UBE, the concept has yet to gain widespread traction.
Global Experiments in Universal Basic Employment
Several countries have tested UBE-like programs with encouraging results:
- Austria: The town of Marienthal started a UBE experiment in 2020, providing guaranteed work to unemployed residents. The program led to a significant drop in unemployment and improvements in mental health and community inclusion.
- Other Examples: Countries like India, Argentina, and South Africa have also experimented with job guarantees, showing that UBE can stabilize local economies and address unemployment.
UBE vs. UBI: A Comparative Analysis
While GBI offers immediate financial relief, UBE might provide deeper, long-term benefits:
- Income Alone Isn’t Enough: According to Maximilian Kasy, a University of Oxford professor, the social and psychological benefits of having meaningful work go beyond just having more income.
- Bipartisan Appeal: UBE could be more politically viable than GBI, which has faced opposition for potentially disincentivising work and raising taxes.
Conclusion: Why UBE Might Be the Better Choice
Universal Basic Employment presents a powerful alternative to guaranteed basic income. By focusing on providing jobs rather than just financial support, UBE can offer more sustainable benefits, including economic stability and community engagement. As Cleveland’s pilot program and global experiments demonstrate, UBE has the potential to address many of the challenges associated with unemployment and economic instability.
