Practice Tests
IELTS Reading (AC) Task 1 #149

A. Universal Basic Income (UBI) is a social and economic policy proposal in which all citizens or residents of a country regularly receive an unconditional sum of money from a government or public institution, independent of their income, resources, or employment status. The core tenets of UBI are that it is universal (paid to everyone), unconditional (without work requirements), and periodic (paid at regular intervals). This concept has gained increasing attention in recent years as a potential response to rising inequality, job insecurity, and the threat of automation displacing human labour.

B. Proponents of UBI argue that it could provide a crucial economic floor, ensuring that everyone has the means to meet their basic needs for food, housing, and healthcare. This could lead to a reduction in poverty and inequality, and improvements in public health and educational outcomes. By providing financial security, UBI might also empower individuals to pursue education, start their own businesses, or engage in unpaid caregiving or creative work, fostering a more dynamic and entrepreneurial society.

C. The idea is not without its critics, who raise significant concerns about its feasibility and potential consequences. The most prominent challenge is the enormous cost of implementing a UBI program on a national scale, which would require substantial tax increases or a major reallocation of public funds. There are also debates about its potential impact on the labour market, with some fearing that an unconditional income could disincentivise work, leading to a decline in the labour supply and economic output.

D. Numerous small-scale UBI pilot programs have been conducted around the world, from Finland to Kenya to Canada, to test its effects in practice. The results have been mixed but often show positive impacts on well-being, health, and entrepreneurship, with minimal negative effects on employment. While the debate over its large-scale implementation is far from settled, UBI remains a compelling and provocative idea for reimagining the social contract in an era of profound economic change.