Medicare for all, elimination of student loans, and 70% wealth taxes are some of the policies being pushed by the Democratic Party’s presidential candidates such as Bernie Sanders, Elizabeth Warren, and others. These policies are designed to improve the lives of the average American. 

There is one policy I believe is the most unique and promising idea proposed by the candidates. Andrew Yang is proposing a Universal Basic Income of $1000 for every U.S. adult over the age of 18. I was skeptical about this at first, but I truly believe that a Universal Basic Income, also called the Freedom Dividend, is a leap in the right direction. 

Let’s start with a big reason Yang wants a UBI: automation. Robots are taking over American jobs. They perform flawlessly and do not care about getting paid. Truck drivers and factory workers will soon be replaced by technology and find themselves out of a job. Our labor participation rate is only 63.2% in February 2019 – a surprisingly low number – and it will get lower with automation. A Universal Basic Income would ease this loss of jobs by giving those affected a floor to stand on.

Next, we should ask ourselves how we will pay for it. With the ~310 million people in the United States, a UBI would mean a lot of money. However, we can pay for it. According to the Yang2020 website, the UBI will be paid for from four main sources: current government spending, a Value Added Tax on certain goods, new revenue, and taxes on pollution and top earners. People living with welfare and/or other government programs would choose between their current program and the UBI.

Inflation would be kept to a minimum because the UBI involves a redistribution of money, rather than adding it into the economy. The value added tax doesn’t involve staple goods like food and clothing, so the prices of those are highly unlikely to increase. Studies done by Harvard and MIT have found no effect on work behavior from the receiving of money, so people stopping work is unlikely. If anything, it’s good that they have leverage. People working bad jobs can bargain for better conditions. For those who are concerned about the economy, the Freedom Dividend is projected to grow the economy by $2.5 trillion in just eight years. 

We find ourselves in the middle of a technological and political shift. As robots take over jobs, we will need a way to help those who have lost their jobs. A Universal Basic Income, proposed by presidential candidate Andrew Yang, is the best solution we have. A Freedom Dividend provides money to ease the job loss of those affected and gives money to those already with jobs. We can pay for it, and we’ve seen that it will do good for the economy and not cause inflation. It’s one of the most ambitious and promising ideas, and I hope we see it implemented soon.