Question

The question is from the textbook Inequality, Discrimination, Poverty, and Mobility Question 4 from chapter 13:

"A vintage idea is a guaranteed annual income. Would guaranteeing people an annual income eliminate the need for the various welfare programs described in this chapter? Would it be a good idea?"

Answer 1

A guaranteed income is a scheme where people will get a minimum annual income, the scheme came into the picture to eradicate poverty and discrimination. Like every scheme has pros and cons so does this , though economist support GAI where people get assured income just to bring equality and remove poverty. On the other hand people lose the dedication and there is downfall in their work effort.

Yes it would decrease the need of other welfare programmes as distributing GAI would decrease the need of other poverty relates schemes which indirectly or directly gives money to poor and increase their income which GIA scheme will do directly.