[2026] PTE Academic Reading - Multiple Choice, Multiple Answers

Universal Basic Income (UBI) is a socio-economic model where the government provides a recurring, unconditional cash payment to every citizen regardless of their wealth or employment status.Proponents argue that UBI provides a critical safety net in an era where automation and artificial intelligence threaten to displace a significant portion of the workforce.By decoupling income from traditional labor, UBI could empower individuals to pursue creative endeavors, higher education, or caregiving roles that are often undervalued in a market economy.Furthermore, early pilot programs in countries like Finland have suggested that while UBI may not drastically increase employment, it significantly improves the psychological well-being and financial security of recipients.However, the policy faces substantial criticism, primarily focused on the immense fiscal burden it would place on national budgets.Skeptics also express concern that a guaranteed income might reduce the incentive for individuals to seek productive employment, potentially leading to a decline in overall economic output.Additionally, there is a risk that UBI could lead to inflation if the increased purchasing power of citizens drives up the cost of essential goods and services.To fund such a program, some economists suggest implementing new tax structures, such as a carbon tax or a tax on automated processes.Despite the controversies, UBI remains a central topic in global debates about how to reorganize social contracts for the 21st century.