Chapter 4 Overcoming the Declining Birthrate with Basic Income and a Fair Tax System 4.1 What is Basic Income (BI)? Its Basic Mechanism

Chapter 4 Overcoming the Declining Birthrate with Basic Income and a Fair Tax System

Subtitle: "Will Basic Income Change Child-rearing?"

Even when policies are launched saying, "The number of children is decreasing, so let's create an environment where people can have more," the birthrate rarely rises.
So, what is a truly effective measure against the declining birthrate?

Here, we want to focus on a mechanism called Basic Income (BI).

Basic income is a system that provides a fixed amount of income to all citizens unconditionally.
"I can't have children because I don't have money," "I hesitate to get married because I'm anxious about the future."
If we remove these economic anxieties, couldn't we make child-rearing a "natural choice" rather than a "special burden"?

In this chapter, let's consider how basic income and a fair tax system can overcome the declining birthrate.

4.1 What is Basic Income (BI)? Its Basic Mechanism

"Is there really such a good deal where you can get money without working?"

Some people who have heard of basic income (BI) might think this.
However, basic income is not just handouts.
Rather, it is a new economic system that increases social stability, improves the labor environment, and also functions as a countermeasure to the declining birthrate.

Now, let's consider specifically what kind of mechanism it is and why it should be introduced.

1. The Basic Concept of Basic Income

Basic income is a mechanism in which the government provides a fixed amount of money to all citizens unconditionally.

✅ Unconditional: Provided to everyone regardless of income or occupation.
✅ Guarantees a minimum standard of living: An amount is assumed that covers part of food and housing expenses.
✅ Freedom to work or not: You can work even with BI, and you can live without working.

Unlike previous social security systems, it is characterized by having no conditions whatsoever, such as "whether you are working" or "what your age or family environment is".
That is precisely why it has the merit that everyone has a foundation to live with peace of mind and can choose their life freely.

2. Why is it necessary to provide it unconditionally?

The opinion immediately arises that "it is wasteful to provide it to high-income earners as well." However, setting income limits creates new problems.

✅ Fraud occurs where income is manipulated to stay within the criteria
✅ Costs for the administration to conduct income screening increase
✅ Procedures become more complicated compared to uniform provision

In fact, it is said that the percentage of people with an annual income exceeding 25 million yen is less than 0.1%.
It is far more costly to set up income screening for that tiny fraction.

Furthermore, for people with high annual incomes, the amount of BI provided would be negligible, so the economic impact is limited.
If that is the case, it is far more efficient and fair to "provide it uniformly to everyone" from the start.

3. How can the financial resources be secured?

"What about the funding for such a system?"

This is likely the biggest question regarding basic income.

However, the important point here is that "funding can be secured without raising taxes." By reviewing wasteful government spending and streamlining existing social security systems, sufficient funding for BI can be secured.

✅ Streamlining subsidies and grants: Review current scattershot systems and consolidate them into BI.
✅ Integration of social security: Replace pensions and welfare with BI to reduce administrative costs.
✅ Financial transaction tax through cashless payments: Improve tax collection efficiency by utilizing digital currency.

In other words, it is the idea that "if you reduce unnecessary spending, you can secure funding for BI without raising taxes."

4. Does basic income "increase the number of people who don't work"?

"If BI is introduced, won't everyone stop working?"

This is also a common question, but past experiments have shown the opposite result.

✅ Reduced anxiety about life makes it easier to take on new challenges
✅ Guaranteed minimum income reduces exploitative labor
✅ More people will challenge themselves with creative work

For example, in the BI experiment conducted in Finland, results showed that recipients experienced less mental stress and more people engaged in learning for self-investment or started businesses.

Also, in Japan, there are not a few people who "have no choice but to work for exploitative companies to survive."
Especially in urban areas like Tokyo, where rent and living costs are high, a situation is created where "you cannot quit even a bad company."

However, if there is BI, you will no longer need to continue unpleasant work just to survive.
Instead, you will be able to choose work that suits your purpose in life and work in a freer way.

✅ No need to cling to unpleasant work
✅ Can choose work you like
✅ Options for side jobs and entrepreneurship increase with BI as a base

In short, BI should be considered not as "a system that increases idlers," but as "a system that revitalizes society as a whole."

Summary: The potential for basic income to overcome the declining birthrate

✅ Reduce the financial burden of child-rearing and increase the options for having children
✅ Reduce anxiety about the future and make marriage and childbirth natural
✅ Increase social mobility and enable more diverse ways of living

The solution to the declining birthrate is not about "just have more children." Rather, wouldn't creating
"a society where having children is natural and can be chosen without strain" lead to an essential solution?

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