Where Would the Money for Universal Basic Income Come From?

While Universal Basic Income (UBI) promises equality and simplicity, its financial reality tells a different story. Implementing UBI at a meaningful scale would demand 35–50% of GDP in most developed nations, straining budgets or increasing debt. Attempts to offset this through higher corporate taxes risk stifling growth, and replacing targeted welfare programs with flat UBI payments could worsen poverty for vulnerable groups. Even as an add-on policy, data shows minimal reduction in poverty, suggesting that UBI’s universal appeal may come at an unsustainable cost.