Which Way Forward for Economic Security: Basic Income or Public Services?

Abstract

Abstract Economic insecurity is an endemic problem across the rich countries of the Global North. What is the solution? This paper compares and contrasts two major proposals: the conventional welfare state package of public services and regulations versus a basic income. By comparing and contrasting these systems in three different contexts – a “nightwatchman” context, a neoliberal context, and a social democratic context – and carefully modeling the monetary equivalence between them, we are able to provide a more precise and compelling comparison of the two systems than has yet been accomplished. We evaluate the two systems on the basis of economic security as well as a number of other important criteria, including the economic well-being of oppressed groups, power, carbon emissions, the gender division of labor, free time, social stigma, and transformative potential. We find that without a welfare state background, services and regulations are generally preferable for most vulnerable groups. However, as the welfare state develops, into a neoliberal or a social democratic context, basic income becomes a generally superior option.