A Guaranteed Income: Supplement to Full Employment Guarantees

Abstract

In a cash economy it is essential that a source of income other than wages be available both to persons who are unable to work—because of age or disability, temporary dislocation, or responsibility for young children or other family members—and to persons unable to earn enough to maintain a minimum level of living. In some situations, this income is most effectively assured through social in surance programs where payments are conditioned on prior earnings and contributions. These programs maintain mini mum income by anticipating situations where interruption of earnings would cause need. In other situations, payments in the form of cash or subsidized food, housing or medical care are based on the prior existence of need. These programs help to define the labor market by setting conditions under which people are entitled to income on criteria other than work. A full employment policy should open new options to those individuals who prefer to work. This should, in turn, relieve some of the pressure on income transfer programs, permitting more generous benefits and less onerous eligibility requirements.