Do Mental Health and Basic Income Go Hand in Hand?

An overview of how the basic income could significantly improve society’s mental health

It’s pretty well-established that an elaborate universal basic income (UBI) system reduces poverty, decreases income inequality, and increases job growth — a great number of economic benefits. What many people fail to notice, though, is that this policy could also cause great psychological impacts in society. Although the stigma surrounding mental illness has been on the decline, talk about its exact perpetrators is still taboo. And it doesn’t help that the pharmaceutical industry has instilled in many of us the idea that mental illnesses are simply related to chemical imbalances in the brain.

Yet, as many of us are aware, environmental stressors should also be charged with instigating such harm in our society. Think about the constant media buzz surrounding the oh-so devious business cycle. It creates a myriad of financial insecurities relentlessly preoccupying us: joblessness, living conditions, debt, savings, socioeconomic inequality. You name it. And don’t forget about the constant preoccupations many of us have concerning health, violence, and natural disasters. Altogether, these can trigger unstable mental conditions in the best of us.

We can combine economics and psychology in applying the principle of scarcity. This social psychology seeks the understanding of the human tendency to place a higher value on things perceived as scarce, rather than on those that are abundant. Although commonly associated with consumer behavior, it also explains the chaos interfering with human decision-making in the event of, well, scarcity. People’s minds are less efficient in times of deprivation, especially when paired with the pressing need to make ends meet in the short run.

That’s where UBI comes in. A monthly income removes any likelihood of absolute deprivation, while at the same time providing a more efficient way out for those who now rely on the archaic welfare system to survive. It’s a real safety net, and humans need security — one of the six most basic human needs — to survive and thrive.

Of course, many may contest the equivocal idea that the welfare system is a form of security. In theory, yes, but, in reality, it fingerpicks those who are most deserving of aid on paper based on their current conditions (e.g. unemployment and disability benefits). The state insists on having people prove they are deserving of such benefits…

Altogether, UBI can most certainly transform society in a positive manner, reducing the environmental stressors that affect mental health. To list some of these benefits: it increases efficiency in the labor market, improves physical health, reduces crime and violence, allows for gender parity, and improves educational attainment. Most importantly, though, a truly universal basic income can directly affect recipients’ mental states by reducing conditions of scarcity, poverty, and financial insecurity considered some of the heaviest stressors.

UBI unquestionably bridges the fields of Psychology and Economics, building a 360-degree approach to tackle some of the most pressing issues with which humanity has been dealing in the modern era. Perhaps it is our chance to look at other remedies that can treat some of the most prominent health concerns of the 21st century. In a time when humans already face the threat of losing the race against the machine, shouldn’t we all be spared the cruel thought that one day we might struggle to sustain our most basic needs?