The concept of Universal Basic Income (UBI) has gained significant traction as a potential antidote to widening economic disparities and technological displacement. Proponents argue that by guaranteeing a regular, unconditional income floor, UBI could dismantle poverty traps, foster entrepreneurial risk-taking, and provide citizens with the stability necessary to adapt to automation's workforce upheaval. However, this utopian vision faces substantial structural critiques regarding its long-term fiscal sustainability and potential disincentivizing effects on labor participation. Critics often question whether a guaranteed baseline income will erode the incentive structure necessary for meaningful employment and how such massive transfers could be financed without triggering unsustainable inflation or drastic tax hikes. Ultimately, while UBI presents an appealing safety net against future economic shocks, its viability hinges not merely on its humanitarian appeal but crucially on establishing funding mechanisms that balance social security with market efficiency.

According to the passage, what is the author's primary stance regarding Universal Basic Income (UBI)?

Question

The concept of Universal Basic Income (UBI) has gained significant traction as a potential antidote to widening economic disparities and technological displacement. Proponents argue that by guaranteeing a regular, unconditional income floor, UBI could dismantle poverty traps, foster entrepreneurial risk-taking, and provide citizens with the stability necessary to adapt to automation's workforce upheaval. However, this utopian vision faces substantial structural critiques regarding its long-term fiscal sustainability and potential disincentivizing effects on labor participation. Critics often question whether a guaranteed baseline income will erode the incentive structure necessary for meaningful employment and how such massive transfers could be financed without triggering unsustainable inflation or drastic tax hikes. Ultimately, while UBI presents an appealing safety net against future economic shocks, its viability hinges not merely on its humanitarian appeal but crucially on establishing funding mechanisms that balance social security with market efficiency.

According to the passage, what is the author's primary stance regarding Universal Basic Income (UBI)?

Accepted Answer

The author presents UBI as a promising concept whose success depends on resolving the conflict between social support and fiscal sustainability.. A is incorrect because the passage presents counterarguments, showing a balanced view rather than strong advocacy. B is incorrect because while inflation is mentioned as a critique, the author does not conclude that UBI is fundamentally flawed due to this alone. C is correct because the passage balances the 'proponents' argument with the 'structural critiques,' concluding its viability depends on balancing these two aspects. D is incorrect because the passage frames UBI as a potential response to technological change, not dismissing the need for income support entirely.