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Guaranteed minimum income can refer to a social theory that all citizens should receive basic means of survival or an income model used in some professions to determine the minimum a worker will be paid. It is often created through laws and social programs but can be difficult to put into practice due to cost and objections.
There are two main senses in which the term “guaranteed minimum income” can be applied. The primary definition of the term refers to a social construct or theory that requires all citizens of a nation to receive income or services that enable a basic survival existence. A guaranteed minimum income is also an income model used in some professions, to determine the minimum a worker will be paid by allowing for bonuses, tips or commissions.
In social theory, the concept of guaranteed minimum income refers to the belief that a government should strive to provide basic means of survival for all citizens. The means of obtaining food, clothing, shelter and other basic necessities are considered by some social philosophers to be part of the social contract between a government and its citizens. While able-bodied citizens are generally intended to obtain these necessities through work, the guaranteed minimum income is intended to help citizens who are unable to hold regular employment, such as the elderly or disabled.
A guaranteed minimum income is often created through laws and social programs. Student loans, for example, allow people without the means to borrow enough money to get an education. Setting a minimum wage protects workers’ incomes by ensuring they are paid fairly for their work. Health insurance and retirement plans for seniors work to ensure that older adults are not lost to retirement after retirement.
While a guaranteed minimum income may be a noble idea, it tends to be difficult to put into practice. The cost of the programs necessary to ensure a living wage for all citizens often requires the imposition of taxes and the expansion of the government’s mandate, which some citizens find objectionable. Some versions of the theory require skilled participants to perform community service or volunteer work to help defray the cost of their wages, much as Depression-era workers in the Works Progress Administration were paid to restore or improve community infrastructure.
In terms of income models, a guaranteed minimum income is often used to attract new workers or beginners to a particular job. Frequently used in sales and service industry jobs, a minimum income is the base salary for a worker, which can be augmented by high performance. For example, a telemarketer might have a guaranteed hourly wage of $11 US dollars (USD) per hour, but receive a bonus for every sale made. This model allows workers to feel confident that they will receive a basic wage for their work while providing incentives for high-level performance.
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