A UBI dispels racist stereotypes about welfare – stigmatization undermines the effectiveness of programs because dehumanization deters people from participating.

Last, but not least, UBI could help disrupt the racial tropes and racial resentment pervasive around the existing welfare system. Negative racist stereotypes of lazy black youth and welfare mothers have important consequences. For a start, they force those in need to think twice before claiming benefits, the risk of stigmatization and demonization being high. This explains in part low take-up rates. Racial tropes also serve to shame recipients to keep them in check and incentivize them further to find employment. Furthermore, there is now ample evidence that racial resentment contributes to low support for welfare. Even when programs do not in fact benefit nonwhites more than whites, the myth of the lazy black recipient contributes to a welfare backlash. The pervasiveness of racial stereotypes is thus concerning both because demonized populations are less likely to enjoy the full benefits of assistance and because it contributes to a welfare backlash that is worrying from a progressive perspective. A universal income support system would be less likely to stigmatize the target population, since all members of the community would get a UBI. If benefits are destigmatized, those worse off are less likely to suffer self-respect harms and to drop out of programs they require to live well.