Week 08 Reflection - Universal Basic Dividend and Its Impacts

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When I first heard Dr. Trost presenting the idea of a Universal Basic Income, I didn’t quite understand or comprehend whatsoever. I had understood Dr. Trost as being a libertarian, and libertarians are generally against redistribution of wealth policies due to their infringement on a citizens right to property. In the past, I could not really identify how a Universal Basic Income would affect the economy, the recipients, and the wealthy. However, after listening to the entirety of his presentation I was able to fully understand the impacts of Dr. Trost’s proposed Universal Basic Dividend amendment.

To start, I think that the idea of making it implemented during a constitutional convention was a great idea. His reasoning was that politicians have the possibility to tamper with normal policies down the line, and this would be something that would need to stay the way it is in order to prevent conforming it to special situations. For example, if the cost of living in an area, say New York, is too expensive for the Universal Basic Dividend to cover, then politicians would not have the ability to make payments different depending on the state a citizen lives in. I also think it was smart to include the definitions of Universal, Basic, and Dividend to show who and what this payment would cover. It makes sense to me now looking back that a Universal Basic Income only cover the basic needs: food, water, and shelter. I always thought that a Universal Basic Income would be just extra money that everyone would get to buy new fishing rods or sports cards or whatever extra thing they wanted in their life.

I think that what Dr. Trost proposes in the Universal Basic Dividend presentation is very logical and would do great things to our country. I think the flat tax of 25% would be ideal, and would be nice to not have to worry about different states and their separate sales tax. One part that does concern me however is the possible elimination of social/welfare programs. Generally, the people that would be needing the Universal Basic Dividend to cover their financial costs for the basic necessities are not the smartest in the financial security department. I think that it would be extremely easy to lose track of that $9000 all at once, and not budget enough to keep you afloat for the entire year. While I do understand that it is a free country and everyone has the right to do as they please with their money, I can’t help but wonder if a check would solve everything and make basic need problems go away.

My thoughts on the Universal Basic Dividend are this. It would be great to have a flat tax on everything and have money go back into American’s pockets if the numbers work. I also think the possibilities for poverty rates are phenomenal, and there could be some of the lowest numbers ever recorded. However, at the end of the day, there still need to be social/welfare programs, at least with a much tighter budget, to back those who may mismanage the money.