I’d like to talk about Universal basic income UBI. There are two key problems with UBI. One is pride and the other is personal finance skills. But before I explain all of this, I want to say upfront that people need and want a living wage.
Universal basic income is a political-economic theory that our society would be better if we simply gave every family one or two grand from the government that they could use in any way they want.
The number one problem with UBI is pride. People want to feel proud of earning their wages and UBI robs people of that pride. According to a book called “Drive,” most people want three things: autonomy and mastery and purpose. UBI might give folks autonomy, but not mastery and purpose.
Work is more than just salary. This ability to be proud as well as earn a living wage, and to feel a part of the community is critical. We need everyone contributing to our society. This is the number one reason why universal basic income is a bad idea.
Another reason why universal basic income is a bad idea is because the vast majority of American citizens do not have enough skill with personal finance. I found this to be particularly true growing up in crushing poverty. I noted with interest reading J.D. Vance’s book Hillbilly Elegy that he described the same dysfunctional relationship with the material world that I grew up with. There was always enough money for cigarettes. Maybe for tattoos or cheap jewelry or bad makeup. But I often wondered whether there would be any food for breakfast when I woke up.
There are reasons that we have problems with personal finance. One of the reasons is because we don’t have enough education so that we can understand things like interest rates and saving and credit ratings. One solution, obviously, is to add personal finance to the curriculum starting in elementary school.
Another problem with personal finance in United States is truth in advertising. A lot of major companies advertise only the monthly payment required for an item purchased on credit. But people need to know the total cost of ownership. This should apply to everything purchased on credit, including vehicles, furniture or appliances, as well as student loans.
Because we lack an understanding of personal finance, giving every family $1,000 or $2000 of universal basic income will not necessarily guarantee each family and their children will have food, clothing and housing. If the money isn’t sufficiently managed, issues like food insecurity and homelessness will persist.
Of course, many of these problems are directly related to mental health and substance abuse, which is a form of debilitating mental health in its own right. There are spirals that go up or down. Unemployed people with or without preexisting mental health problems may become depressed. Depression and its cousin anxiety regardless of whether they are caused by life’s struggles or genetic inherited mental illness can inspired self-medication. Self-medication is often a form of substance abuse if people use illegal drugs. But even legal drugs like alcohol can lead to substance abuse when used as a form of self-medication to treat depression or anxiety.
Of course, people with substance abuse and its comorbid cousin mental illness can struggle in gaining and keeping a job. Difficulties in gaining or keeping a job result in financial problems. Financial problems result in depression or anxiety. And so, the spiral goes on.
The better solution is to break down the barriers to employment to help people earn a living wage. Ideally, a wage that include health benefits so they can get help, if necessary, with substance abuse or other health issues. We need to help people get good quality jobs. We need to help companies who desperately need good employees.
Recently, I asked the governor of the state of Maryland to please make the many CDL tests and study materials available in languages other than English. These tests are required for professional driver jobs. There are two dominate career fields where the bulk of Americans work: retail and professional drivers.
Because people who speak English as a second language or having literacy issues in their own language, they struggle to understand the CDL test materials. This not only robs them of a living wage, but also robs are companies and our schools of having enough professional drivers.
The language included in the CDL test, and the basic driving test uses terms we rarely use in conversations. Words like pedestrian aren’t commonly used anywhere else. We should change the content to more simplified English communication so that everyone can understand it better.
21% of adults in the US read below a 5th-grade level.
75% of Americans who get food stamps struggle with literacy.
43% of adults with the lowest literacy skills live in poverty.
There are many reasons as to why people struggle with literacy. They may have dyslexia or other learning related problems. ADHD. We can make educational materials for professional drivers available in an audio format. Reading shouldn’t be a barrier to entry into a job where they need to look outside the windshield and avoid collisions. Except for passing the test, these professionals are not Supreme Court justices. They don’t read for living.
We can and should help folks with literacy challenges gain effective employment and help the companies and schools who need professional drivers.
We need to remove the literacy barrier to one of the top areas of employment in the United States.
The last barrier I would remove is the test fee. I would waive the test fee professional driving exams for anyone who is not working as well as for anyone who qualifies for food stamps. We need to get people off unemployment and into companies that desperately need professional drivers. And if people can pass the test, the $40 entrance fee is not important.
For companies that give free drivers training to potential employees in exchange for a contract that requires a certain time employed, they should get a tax break.
The photo used with this post is a generative AI image. The person doesn’t exist.

