Definition
Universal basic income (UBI) is a policy proposal under which a government or public institution pays every member of a community the same amount of cash on a regular, unconditional basis, with no means test and no work requirement.
How it works
UBI design revolves around three parameters: the amount, the payout period and the coverage. Supporters argue that unconditional cash provides basic security and simplifies welfare systems; critics focus on fiscal cost and effects on labor supply. Pilots in various places are mostly local, temporary cash transfers and fall short of full UBI.
Usage
UBI comes up in welfare policy debates and in arguments about how AI automation may affect employment, and it remains a long-running topic in tech and economics circles.
Related and confusable terms
UBI differs from unemployment benefits and minimum wage: UBI covers everyone unconditionally, while the other two presuppose unemployment or an employment relationship respectively.