this post was submitted on 02 Nov 2023
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Eh, I don't think there's much of an argument for UBI to not be means-tested. If it's meant to be a basic support so that people can maintain dignity through their most difficult time, I doubt you're seeing people choosing early retirement. Besides, OAS and GIS are already means-tested basic income for seniors.
As for big inflationary force? Maybe? But the idea that lifting a limited portion of the population out of the worst of financial circumstances will cause problematic inflation is pretty laughable. Economists still don't know what actually causes inflation, apart from the expectation of inflation.
There are plenty of arguments for it not being means tested including not having the huge administrative burden and removing social stigma. I think people often don’t realize the time and finances required to administer means testing.
That would make it a basic income, but not a universal basic income. Just to clarify the terms.
Something similar to what you are describing is called a negative income tax, in case you want to learn more about that.