Jobless people generally cannot earn additional income while collecting unemployment benefits or they risk losing that assistance. For laid-off workers from Nokia, simply collecting a guaranteed unemployment check often presents a better financial proposition than taking a leap with a start-up in Finland, where a shaky technology industry is trying to find its footing again.
Now, the Finnish government is exploring how to change that calculus, initiating an experiment in a form of social welfare: universal basic income. Early next year, the government plans to randomly select roughly 2,000 unemployed people — from white-collar coders to blue-collar construction workers. It will give them benefits automatically, absent bureaucratic hassle and minus penalties for amassing extra income...The answers — to be determined over a two-year trial — could shape social welfare policy far beyond Nordic terrain. In communities around the world, officials are exploring basic income as a way to lessen the vulnerabilities of working people exposed to the vagaries of global trade and automation. While basic income is still an emerging idea, one far from being deployed on a large scale, the growing experimentation underscores the deep need to find effective means to alleviate the perils of globalization...Universal basic income is a catchall phrase that describes a range of proposals, but they generally share one feature: All people in society get a regular check from the government — regardless of their income or whether they work. These funds are supposed to guarantee food and shelter, enabling people to pursue their own betterment while contributing to society...A Silicon Valley start-up incubator, Y Combinator, is preparing a pilot project in Oakland, Calif., in which 100 families will receive unconditional cash grants ranging from $1,000 to $2,000 a month. Voters in Switzerland recently rejected a basic-income scheme, but the French Senate approved a trial. Experiments are being readied in Canada and the Netherlands. The Indian government has been studying basic income as a means of alleviating poverty...Strikingly, basic income is being championed across the ideological spectrum...“Some people think basic income will solve every problem under the sun, and some people think it’s from the hand of Satan and will destroy our work ethic,” says Olli Kangas, who oversees research at Kela, a Finnish government agency that administers many social welfare programs. “I’m hoping we can create some knowledge on this issue.”
From an interesting long read at The New York Times. I scanned the article for the use of the word "inflation" and didn't see that aspect discussed.