The COVID-19 pandemic, particularly during its peak, became the largest real-world experiment in universal basic income (UBI). As I write this, its effects are still unfolding.
The crisis has profoundly impacted various sectors, with the leisure and entertainment industry among the hardest hit. In the Netherlands, businesses in these sectors are operating at significantly reduced capacity – many likely below 50%. This is largely due to government-imposed restrictions, such as the 1.5-meter distancing rule, which limit their ability to function normally.
As a result, a substantial number of people are now reliant on government assistance. While financial aid is necessary in times of crisis, prolonged dependence on state support creates economic and social frictions. UBI, in particular, fosters a reliance on government institutions that have repeatedly demonstrated inefficiency and mismanagement.
Moreover, a basic income does not truly provide financial security. Let’s assume a realistic need for €1,500 per month. This amount would make it difficult, if not impossible, to afford city living. Even in the suburbs, surviving on UBI alone would likely require supplementing it with a part-time job. Cities, in my view, should be home to those with ambition and a strong work ethic—individuals who actively contribute to society through both their labor and taxes.
While the pandemic has tested the feasibility of large-scale government support, it has also underscored the challenges and limitations of UBI as a long-term solution.
Why Universal Basic Income Ultimately Fails
In my opinion, universal basic income (UBI) is not a sustainable solution in the long run. The concept is simple: the government deposits a fixed amount of money into your bank account each month. Ideally, this would be paired with active job-seeking support from a case manager. However, in reality, this kind of guidance is often inconsistent or entirely absent.
Rather than relying on UBI, I believe people should be encouraged to work part-time and explore different jobs. Employment not only provides financial stability but also fosters a sense of purpose and routine—both of which are essential for mental well-being. A life without structure or professional engagement can ultimately lead to greater social and economic costs.
Additionally, a society built on the premise of universal equality of income overlooks a fundamental truth: there will always be differences in skill, ambition, and effort. While legal and social frameworks can promote equal opportunity, differences in outcomes are inevitable. Trying to engineer a completely equal society through financial handouts is neither practical nor beneficial in the long term.
Instead of relying on UBI, we should focus on policies that promote work, self-improvement, and upward mobility—ensuring that individuals contribute to society rather than becoming passively dependent on government aid.