The full form of GMI is Guaranteed Minimum Income.
Guaranteed Minimum Income (GMI), sometimes referred to simply as Minimum Income (or "mincome"), is a social welfare system. Its core principle involves guaranteeing all citizens or families an income sufficient to meet basic living needs. Typically, eligibility conditions include citizenship and the recipient not already receiving an income that meets or exceeds the guaranteed minimum.
Key aspects of Guaranteed Minimum Income:
- Universality: It aims to cover all citizens or families who meet the defined criteria.
- Unconditionality (in some models): Ideally, GMI is provided without requiring work or other obligations from recipients. Some variations may include work requirements or incentives.
- Income Floor: It establishes a baseline income level, ensuring everyone can afford basic necessities.
- Poverty Reduction: GMI is intended to significantly reduce or eliminate poverty by providing a safety net.
Potential benefits often cited include:
- Reduced poverty and inequality
- Improved health and well-being
- Increased economic security
- Simplification of welfare programs
Potential drawbacks frequently debated include:
- High costs
- Disincentive to work
- Potential for inflation
- Implementation challenges
