Guaranteed Income

Definition

A guaranteed income is a government program that ensures every citizen receives a certain amount of money on a regular basis, regardless of their employment status or income level. It aims to provide a basic level of financial security for all individuals.

Analogy

Think of a guaranteed income like having a safety net beneath you when you're walking on a tightrope. It's there to catch you and prevent you from falling into financial hardship.

Related terms

Citizen's Income: Also known as universal basic income, it refers to an unconditional payment made to every citizen within a country, regardless of their employment status.

Basic Income: Similar to guaranteed income, it is an unconditional cash transfer provided by the government to ensure everyone has enough money for their basic needs.

Poverty Line: The poverty line is the minimum level of income deemed necessary for individuals or families to meet their basic needs. It serves as a benchmark for determining eligibility for various social welfare programs.