Abstract

This paper defends a regularly paid basic income as being better equipped to tackle unfair inequalities of outcome. It is argued that the timing of "option-luck" failures – in particular, whether they occur early in a lifetime of calculated gambles, and whether they are clustered together – may lead to a form of "brute bad luck," referred to as "cumulative misfortune." A basic income that is paid on a regular basis provides a way to prevent the emergence of cumulative misfortune, because the basic income at least partially replenishes the individual's ability to take the next calculated gamble. The upshot of this is a nonpaternalistic justification for an unconditional basic income that is paid regularly and is nonmortgageable. This has an important bearing on the debate between those who advocate a one-off endowment at the start of adult life and those who advocate a basic income paid regularly throughout one's life. The paper contends that a regular basic income represents a superior social policy because it prevents the emergence of cumulative misfortune, rather than belatedly attempting to compensate for its effects during our senior years.

Recommended Citation

Wigley, Simon (2006) "Basic Income and the Problem of Cumulative Misfortune," Basic Income Studies: Vol. 1 : Iss. 2, Article 5.
Available at: http://www.bepress.com/bis/vol1/iss2/art5