The Toothpaste Argument for Universal Basic Income is based on the idea that payment is forward-oriented, not backward-oriented. According to Götz Werner, income is the prerequisite for work, not the other way around. When people have a basic income, they have the freedom to choose unpaid or paid work, and they can focus more on their work and personal lives. Basic income also allows people to signal what goods and services they want producers to continue making. Furthermore, the argument suggests that basic income can improve market functioning by allowing everyone to vote on what the market should supply. Overall, the Toothpaste Argument emphasizes the importance of income in enabling work and supporting individuals in their daily lives.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Toothpaste as a metaphor for UBI | UBI as enabling work | UBI enables work, income is the prerequisite for work | Understanding that income comes before work |
| Income as the fuel for work | Income comes before work | People need income to afford working | Recognizing the importance of income for work |
| Basic income as a form of permission | Basic income enables freedom | Basic income allows individuals to focus on work and their own lives | Providing individuals the freedom to focus on work |
| Basic income as a signal for desired work | Basic income enables more work | Basic income allows people to choose unpaid or paid work and vote on what work the community wants local businesses to do | Greater ability to choose work and support local businesses |
| Basic income as a market with better signals | Basic income improves market efficiency | Basic income allows everyone to vote on what the market should supply, leading to better price signals | Market efficiency and democratic participation |
| Income comes before unpaid work | Basic income supports volunteering | Basic income allows individuals to afford unpaid work | Making volunteering and unpaid work possible |
| Cash infusion leads to improved work | Cash before work leads to better productivity | Having cash first leads to more and better work | Financial constraint impacts worker productivity |