Universal Basic Income

Definition

Universal Basic Income refers to a government program that provides a fixed amount of money to all citizens, regardless of their income or employment status. It is designed to ensure that everyone has a minimum level of financial security.

Analogy

Imagine if every student in your school received a weekly allowance from the principal, regardless of whether they had part-time jobs or not. This allowance would help cover basic expenses like food and transportation, ensuring that everyone has some financial stability.

Related terms

Poverty Line: The poverty line is the threshold below which individuals or families are considered to be living in poverty.

Welfare State: A welfare state refers to a system in which the government plays an active role in protecting and promoting the economic and social well-being of its citizens.

Means Testing: Means testing is the process of determining eligibility for government assistance programs based on an individual's income and assets.