Libertarian Perspectives on Basic Income

How can libertarianism—which is thought to be hostile to any redistribution—support universal, unconditional cash transfers in the form of a Basic Income? Surprisingly, many vocal proponents of programmes similar to Basic Income—such as economist Milton Friedman, public intellectual Charles Murray, and eBay co-founder Pierre Omidiyar—are self-described libertarians. As this chapter demonstrates, these and other libertarian proponents are not deviating from libertarian thought: instead, they reflect the nuance and diversity of its theoretical foundations. To that end, this chapter explores several justifications for a Basic Income grounded in libertarianism. By libertarianism, we mean a family of theories that emphasize the right of the individual to be free from coercion, a strong respect for private property rights and the free market, and a presumption that market distributions are just and should be disturbed only in limited circumstances. We argue that each variant of libertarianism justifies, but does not mandate, redistribution, although for differing reasons and at different levels. Because this conclusion runs counter to most readers’ impressions of libertarianism, this chapter focuses on making the libertarian case for redistribution. We further show that once one accepts the case for redistribution, providing such redistribution through unrestricted, unconditional cash transfers best reflects core libertarian principles.