Confused by UBI jargon? We got you.

Your very own vocabulary list to understand the essential terms (in the simplest of terms)

Universal Basic Income (UBI) — is a type of basic income (a periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement) that has three key characteristics:

1. Universal. Everyone gets it no matter your income, job status, or background.

2. Regular. Consistent payments provide a predictable income floor.

3. Unconditional. Spend it how you need. No strings attached.¹

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• Automation — Refers to the increasing use of machines and Artificial Intelligence (AI) to do jobs previously done by humans. As technology advances, many wonder if UBI could be a way to support people in a changing job market where human roles are shifting.²

• Basic Needs — The fundamental necessities for human well-being, like food, shelter, and clothing. UBI, by establishing a nonzero floor of income for all, would ensure that nobody is ever without income to put toward such essentials.³

• Dignity — Highlights the idea that providing a basic income can empower people, reduce the stress of financial insecurity, and lessen the stigma often associated with traditional welfare programs.⁴

• Economic Security — One of the main goals of Universal Basic Income (UBI). This means having a reliable financial foundation and enough support to manage everyday costs and unexpected financial surprises. UBI acts as a safety net by providing a regular income, giving people a stable base to build upon for their well-being.⁵

• Entrepreneurship — Some UBI advocates believe that a basic income could boost entrepreneurship by providing a financial safety net. This allows individuals the freedom to take risks and start new businesses without the immediate pressure of survival.⁶

• Funding Mechanisms — Refers to the various ways proposed to finance a basic income. This could include ideas like reforming taxes or reallocating money from existing government programs.⁷

• Guaranteed Income — While similar to UBI, Guaranteed Income focuses its regular, no-strings-attached cash payments on specific groups of people, often those with lower incomes or facing particular challenges. It’s about creating a financial safety net for defined populations, not everyone.⁸

• Negative Income Tax (NIT) — Unlike UBI’s upfront payment to everyone, Negative Income Tax (NIT) works through the tax system. If you earn below a certain income level, you receive money back from the government, like a tax credit or refund. This creates a safety net that gradually phases out as your income rises.⁹

• Pilot Program — A small-scale trial in a specific area or with a select group of people. This helps researchers study its effects and gather valuable insights before considering broader adoption.¹⁰

• Sustainability — Refers to whether a basic income program can be financially supported and continue to operate effectively over a long period.¹¹

• Workforce Evolution — How jobs and the skills people need are constantly changing, often because of new technologies. This suggests a shift in roles rather than just a loss, with new opportunities emerging.¹²

1. Basic Income Earth Network (BIEN)

2. Automation (Britannica)

3. Universal Basic Income: Key to Reducing Food Insecurity and Improving Health (Drexel Center for Hunger-Free Communities)

4. The Dignity of Universal Basic Income: Juliana Bidadanure (McCoy Family Center for Ethics in Society at Stanford University)

5. Universal Basic Income: A Game-Changer for Economic Security (Impakter Business of Sustainability)

6. Universal Basic Income: Key to Reducing Food Insecurity and Improving Health (Drexel Center for Hunger-Free Communities)

7. The Architecture of a Basic Income (The University of Chicago Law Review)

8. Guaranteed Income and Direct Cash Transfers (The Center for High Impact Philanthropy at the University of Pennsylvania)

9. Negative Income Tax, Explained (MIT Sloan School of Management)

10. Pilot Program (ScienceDirect)

11. Universal Basic Income (Pollution Sustainability Directory)

12. Future Workforce Evolution (Lifestyle Sustainability Directory)