That’s a big part of why UBI has such bipartisan support, from Libertarians to Socialists alike—it’s a safety net that actually provides for more choice, more independence, and more economic activity and innovation.
While I think UBI has to happen and that the arguments against it are “bootstraps” BS, it could take on a form that exacerbates or cements inequality. I hope this programme makes it a core value – and not just a best practise – that UBI funds should arrive without the strings that neoliberalism likes to attach to any payment from the state.
ETA: This is America, so also keep in mind that there are opportunists and predators ad cronies who try to use these programmes as a way to squeeze out a buck from those who can least afford it.
As a small example, note that some of the $600 stimulus payments are being sent out not through cheques but pre-paid debit cards that may incur extra fees (especially for the unbanked and the poor) that go directly into the pockets of big banks.
When you use your stimulus debit card at an ATM within the AllPoint network, you won’t pay a fee at all. You can find a list of all the network ATM’s on the EIP Card website.
But if you use a machine outside of that network, you’re at risk of paying not just one, but two separate fees. First, Metabank, which issues the card on behalf of the Treasury Department, will charge you a $2 fee each time you withdraw cash on a non-network ATM (though it will waive the fee once, for your first ATM withdrawal).
And second, the owner of the ATM itself may charge you a fee, which can range from 99 cents to several dollars, depending on the machine. Plus, if you happen to be outside the US, you’ll be charged an even higher $3 fee by Metabank to withdraw cash from an ATM, no matter what machine you use, plus any additional fee charged by the ATM operator.
So if you’re going to withdraw cash from your stimulus debit card using an ATM, you’ll want to make sure you’re doing it only at a network ATM in the US.
While we’re on the subject of ATMs, if you’re not sure how much money you have left on your stimulus debit card, don’t use an ATM to find out. Every time you make a balance inquiry at an ATM, Metabank will charge you a fee of 25 cents.
That 25 cents may not sound like much, but it can add up fast, especially if you decide to use an ATM as your primary method of keeping track of your card’s remaining money.
Even worse, you’ll be charged this fee regardless of whether you’re using a network or non-network ATM. And if you’re using a non-network ATM, the ATM owner can tack on an additional fee of its ow
https://us.cnn.com/2021/01/08/cnn-underscored/stimulus-payment-debit-card-fees-to-avoid/index.html
That banks should even be allowed to skim 1% or more off a meagre stimulus payment where every dollar counts is outrageous, but this is exactly the kind of thing that can happen with an American UBI if we’re not careful.