Product equilibrium
A review of an article of a current economic topic, discuss how it relates to economics 101.
Part two
A product or service use on everyday life, the factors that influence the demand of that product, the supply of that product, the supply and demand changes that affect the product equilibrium. Changes to the product demand and what drives the changes.
Sample Solution
In recent years, the concept of Universal Basic Income (UBI) has become increasingly popular as a potential solution to poverty and inequality. The basic idea is that everyone should receive some level of financial support from the government in order to meet their basic needs. In an article published by The Guardian, titled “Universal basic income: could it help people escape poverty?”, authors Stephanie Wheatley and Danielle Wood explore how UBI could be used to alleviate poverty in the United States.
Economics 101 teaches us about the incentives for individuals and governments when trying to reduce poverty. On an individual basis, it encourages people to work hard by giving them better opportunities through employment or self-employment so they can provide for themselves and their families. Governments typically implement welfare programs such as food stamps or housing subsidies that are targeted towards those most in need. However, these types of programs are often complex with stringent requirements which can be difficult for individuals on lower incomes to access due to a lack of resources or knowledge (Wheatley & Wood 2020).
UBI offers another option for addressing poverty and providing economic security for low-income households as it does not rely on an individual possessing certain characteristics in order to qualify for assistance; everyone would benefit equally regardless of race, gender or occupation (Wheatley & Wood 2020). This could be advantageous as other welfare policies tend not target those who may fall through gaps because they do not fit neatly into pre-existing social categories related race, gender etc.. While there are still concerns around whether UBI is financially viable at scale or whether it will create further economic disparities between different groups within society (Levin 2019), it presents an interesting alternative approach compared with traditional forms of state welfare programmes which have had mixed success over time.
The article also provides insight into some experiments already being carried out around the world such as Finland’s trial scheme where 2 000 unemployed persons were given €560 per month without any strings attached (Mesanen et al 2018 cited in Wheatley & Wood 2020). Research from this initiative suggests that individuals receiving UBI felt more secure than before due largely greater financial stability which provided them with more freedom when making decisions about their future prospects such education options or job choices (Wheatley & Wood 2020). While there is still much debate surrounding UBI due its potential cost implications and feasibility at scale , research from existing initiatives should prove useful when considering how best tackle issues related poverty going forward .
