Solvency deficit – a UBI is better than Means Testing – it has more political support, is easier to administer, and eliminates the stigma of welfare, which is critical to participation by the poor.

A universal basic income, or UBI, is defined as “a periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement,” according to the Basic Income Earth Network. The child tax credit isn’t quite the same, because it is only for families with children; it also phases out at higher income levels and essentially still forces people to prove they are “poor enough” to need help—a means test. A more ambitious bill approaching the idea of UBI introduced by Representatives Rashida Tlaib and Mondaire Jones, would eliminate the means test, thereby creating a universal child allowance. Universal benefits have several advantages over means-tested benefits. They avoid divisions between “us” and “them,” removing the stigma associated with targeted benefits. Uptake by the needy, a persistent problem with targeted benefits, is improved when stigma and bureaucratic hurdles are removed. Universal benefits tend to be more popular and hence are more politically secure and better funded. And universal benefits, dispensing with means testing, are easier to administer. The universal child allowance would enroll all children at birth so no child would be excluded.