Skip to content
12 Axes Test

UBI Meaning: What Is Universal Basic Income?

Universal basic income (UBI) is a regular cash payment from the government to every citizen, with no means test and no work requirement.

Also calledbasic incomecitizen’s income
Thomas PaineMilton FriedmanHistorical proponents:Thomas Paine, Milton Friedman

Where do you stand?

Statement 1 of 3

Every citizen should receive a from the state.

Nothing is sent anywhere.

What does universal basic income (UBI) mean?

The defining features of a UBI are that it is universal (paid to everyone, rich or poor), unconditional (no job search or work requirement) and regular (paid at intervals, such as monthly). The amount is usually meant to cover basic needs, though pilots have mostly paid smaller sums.

Versions of the idea have been supported across the political spectrum, from Thomas Paine to Milton Friedman, who proposed a related scheme called a negative income tax. It has been tested in pilots in places including Finland, Kenya and Stockton, California, with mixed and much-debated results. Alaska’s Permanent Fund Dividend, which pays residents an annual sum from oil revenue, is often cited as a partial example.

Who were the key historical thinkers behind universal basic income (UBI)?

Influential figures in the 12 axes thinker pool who advocated, analyzed or shaped ideas around this concept.

Thomas Paine

Thomas Paine

Pamphleteer & revolutionary · 1737–1809

An English-born pamphleteer whose Common Sense and Rights of Man argued for American independence, republican government and public provision for the poor, and whose Age of Reason attacked revealed religion.

Collectivize vs PrivatizeCollectivize

“Agrarian Justice proposes taxing inherited land to pay every adult a lump sum at 21 and a pension from 50.”

Milton Friedman

Milton Friedman

American economist · 1912–2006

An American economist of the Chicago school who defended free markets, floating exchange rates and school vouchers, and argued that economic freedom supports political freedom.

Collectivize vs PrivatizePrivatize

“Competitive capitalism separates economic from political power, guarding liberty.”

What are some examples of universal basic income (UBI)?

Real cases that people point to when they use the word.

  1. Finland’s 2017–2018 experiment paid 2,000 unemployed people a monthly sum with no conditions attached.

  2. Alaska’s Permanent Fund Dividend pays residents a yearly amount funded by oil revenue.

  3. The Stockton, California pilot (2019–2021) paid 125 residents $500 a month.

What are the arguments for and against universal basic income (UBI)?

Reasonable people disagree about this. These are the strongest points made on each side.

Arguments in favor

  • Simplifies welfare and reduces the red tape of means-testing
  • Provides a floor against poverty and a cushion in a changing job market
  • Gives people more freedom to choose work, study or caring

Arguments against and open questions

  • It is expensive, and raises questions about how to pay for it
  • It could reduce work incentives, though pilot evidence on this is mixed
  • Paying everyone may be a less targeted way to help the poorest than other programs

How does universal basic income (UBI) show up in the 12 axes test?

The test asks about it in a statement. Your answer moves one axis score.

Agreeing that every citizen should receive a basic income moves your score toward the Collectivize side of the Collectivize vs Privatize axis, because it expands state-funded redistribution. Some free-market thinkers back a basic income as a replacement for other welfare, so your answer says more about how you feel about redistribution than about any party.

Which way agreeing pushes the score

CollectivizePrivatize

Agreeing with a statement about universal basic income (UBI) moves your score toward Collectivize.

Universal basic income (UBI): frequently asked questions

UBI stands for universal basic income: a regular, unconditional payment to every person in a country or community.

No. Welfare programs are usually targeted at people who meet conditions, such as low income or unemployment. A UBI goes to everyone regardless of income or work status.

On the 12 axes, this term sits on the Collectivize vs Privatize axis, which asks: “Should important industries and wealth be shared collectively, or owned and kept privately?” Agreeing with a statement about it moves your score toward Collectivize.

Something else on your mind? Get in touch

Where do you stand on Collectivize vs Privatize?

Three statements gave you a first reading. The full test scores all twelve axes and finds your closest countries and ideologies.