Andrew Yang suspended his campaign in February. You might imagine he’s kicking himself right now. The CARES Act, a 2 trillion dollar stimulus plan that gives a check of up to $1200 to every adult in the US and up to $500 for every child, was signed by Trump last month. Essentially, free money to the people, or what Yang had argued for well before COVID-19.
But although he’s not planning to re-join the race, the three words that defined Yang’s run— universal basic income— ring more true to Americans than ever before. Despite the passing of the CARES Act, we shouldn’t pat ourselves on the back: we’re actually nowhere closer to UBI than we were before.
Simply put, the CARES Act is a one-time payment. And like a battery, it must be replaced. $3400 — the maximum amount a family of four will recieve — is the equivalent of both parents working eight hours a day at 15 dollars an hour for two weeks. Many states, including Massachusetts, have stay-at-home advisories and orders for the next month. Bill Gates has recommended the entire country to shut down for ten weeks or until new cases dwindle. There’s no telling when the dust will settle, which is why an additional payment is likely down the line.
But additional emergency payments are not universal basic income. These are just emergency payments. They end as soon as COVID-19 is deemed to be no longer a public health emergency. And while Goldman Sachs predicted the US GDP to leap 19 percent in Quarter 3, it also predicted a 34 percent drop in Quarter 2. The recovery will be immense, but things won’t be back to normal instantly. US citizens still have to be financially supported well after the crisis is over.
Think about this: if 47 million Americans become unemployed over this crisis, that means 47 million Americans are competing for jobs during the next. Many are bound to lose because businesses won’t be back up to speed at first. People who lose their jobs and their income don’t buy the services and goods of businesses, which shut down and lead to more layoffs. Along with stimulating business, having enough money to keep people fed is crucial for reasons that should be obvious.
Universal basic income is money given to citizens at a steady rate with no contingencies. The CARES Act is not UBI and its sequels won’t be either. They are just the bare minimum. Andrew Yang, when interviewed by Politico, said that “I was talking about an evolving automated economy that would affect more and more of us home over time,” when establishing his rationale behind UBI. He was not talking about a biological disaster that would force millions out of work in a matter of weeks. Indeed, the latter makes UBI even more important to ensure the financial survival of Americans today.