By Michael Kelman Portney

As the political landscape continues to shift, Democrats are facing increasing pressure to redefine their platform to appeal to a diverse and evolving voter base. One potential pathway forward is for the Democratic Party to embrace a unique combination of small-government principles and universal basic income (UBI). This approach could attract voters who are interested in both economic security and streamlined, efficient government that avoids overreach while addressing core needs. A “small-government Democrat” model with UBI would offer a new, compelling vision: a social safety net through direct cash transfers, coupled with a reduction in bureaucratic programs and an emphasis on personal freedom.

This paper explores the potential for small-government Democrats to leverage UBI as a central pillar of their platform. By examining the alignment of UBI with small-government principles, the benefits of this approach, and how it could transform Democratic policies and appeal, we argue that this model could present a practical, compassionate, and efficient path forward.

1. Understanding Small-Government Principles in a Democratic Context

A. What “Small Government” Could Mean for Democrats

Traditionally, the Democratic Party has been associated with a larger government that provides extensive social services, regulatory protections, and public programs. However, a small-government approach within the Democratic Party could involve a shift toward simplification, decentralization, and personal empowerment. Rather than relying on large-scale bureaucratic programs, small-government Democrats would emphasize targeted, efficient solutions that directly impact individuals’ well-being without excessive government intervention in their daily lives.

Simplification of Services: Small-government Democrats would advocate for streamlined government services and programs, reducing redundancy and making the public sector more efficient.

Focus on Empowerment through Direct Support: Instead of many specialized programs, small-government Democrats could focus on providing individuals with financial freedom and choice through direct cash support, allowing them to make decisions that best fit their unique needs.

B. Why Universal Basic Income Fits with Small-Government Ideals

UBI, as a system that provides a regular cash payment to every citizen without strings attached, aligns well with the goals of a small-government approach. By providing individuals with a guaranteed income, UBI bypasses the need for complex welfare programs, delivering economic security without adding layers of bureaucracy. A UBI could provide a basic financial foundation, empowering people to spend money as they see fit rather than funneling them through various specific programs.

Reduced Bureaucracy and Administrative Costs: UBI simplifies social support, eliminating the need for extensive oversight and administration associated with programs like food stamps, housing assistance, and unemployment benefits.

Enhanced Individual Freedom: By providing direct cash assistance, UBI allows people to make decisions based on their needs, which is consistent with the small-government principle of reducing state control over personal choices.

2. Benefits of a Small-Government Democrat Platform with UBI

A. Streamlining Social Safety Nets

One of the primary advantages of a small-government approach with UBI is the simplification of the social safety net. Current welfare programs are often complex, requiring recipients to navigate a maze of applications, eligibility requirements, and bureaucratic oversight. UBI would streamline this process by replacing many of these targeted programs with a single, universal cash payment.

Eliminating Redundant Programs: By implementing UBI, the government could reduce or eliminate redundant welfare programs, focusing resources on direct cash transfers that offer the same, if not better, outcomes with less administrative burden.

Increased Access and Efficiency: UBI is universal, meaning that everyone receives the same amount, removing the stigma or barriers that prevent some people from accessing benefits. This makes the social safety net more accessible and reduces bureaucratic inefficiencies.

B. Fostering Economic Resilience and Personal Freedom

With a guaranteed income, people would be better equipped to make choices that align with their personal goals, creating a sense of empowerment and reducing reliance on government for specific needs. This aligns with small-government values by emphasizing individual autonomy and resilience.

Supporting Entrepreneurship and Innovation: UBI would provide a financial cushion that allows individuals to pursue entrepreneurial endeavors or invest in education and skill-building. This would encourage self-reliance and economic innovation without direct government intervention.

Increasing Financial Security without Interventionist Policies: Rather than controlling the economy through extensive regulatory or interventionist policies, UBI provides a baseline level of financial security, allowing markets to function more independently while individuals are empowered with greater economic stability.

C. Reaching Across the Aisle to Build Broader Coalitions

A small-government Democrat platform that includes UBI could attract a wide range of voters, from progressives who support social safety nets to independents and moderates who prefer streamlined government. This platform could create new coalitions by appealing to those who feel alienated by the bureaucracy of traditional social welfare systems and those who want a more flexible, individual-focused approach.

Appealing to Independents and Moderates: Independents, who often value pragmatism, may be drawn to the simplicity and efficiency of UBI, while conservatives who support smaller government could view UBI as a way to replace or reduce welfare programs.

Bridging the Gap between Economic Security and Freedom: This approach allows Democrats to offer economic security through cash payments while embracing a pro-freedom stance on personal decision-making, creating a platform that could resonate across ideological divides.

3. Challenges and Considerations for Implementing UBI within a Small-Government Framework

A. Funding UBI without Expanding Government Debt

One of the primary challenges in implementing UBI is finding a sustainable funding source. A small-government Democrat platform would need to approach UBI funding in a way that avoids significant increases in national debt or tax burdens that could negate the program's benefits.

Potential Funding Models: Options could include reallocating funds from existing welfare programs, implementing a value-added tax (VAT), or exploring alternative revenue sources like carbon taxes or wealth taxes. Each option would need to be carefully considered to ensure it aligns with the goals of maintaining a streamlined government.

Balancing Funding with Tax Policy: A small-government Democrat approach would emphasize minimal disruption to taxpayers, seeking funding models that are fair, sustainable, and not overly burdensome on working and middle-class families.

B. Addressing Concerns around Economic Incentives

Critics of UBI often argue that a guaranteed income could disincentivize work. A small-government Democrat approach would need to address these concerns by framing UBI as a baseline level of security, not a replacement for earned income or an encouragement to withdraw from the workforce.

Framing UBI as a Foundation, Not a Ceiling: Democrats could emphasize that UBI is intended to provide a financial floor, helping individuals meet basic needs without removing incentives for employment or entrepreneurship.

Encouraging Labor Market Participation: By combining UBI with incentives for education, job training, and entrepreneurship, small-government Democrats could foster an environment where people are encouraged to contribute to the economy in meaningful ways.

C. Redefining the Role of Government in Society

The shift toward a small-government model with UBI would require a rethinking of the traditional role of government in society. Instead of managing a vast array of social services, government would focus on providing the resources individuals need to empower themselves.

Moving from a Provider to an Enabler: In this model, government’s role shifts from directly providing services to enabling citizens to access resources independently. UBI empowers individuals to make choices that best suit their needs, reducing dependency on government programs.

Maintaining Essential Government Functions: While UBI would replace many welfare programs, essential government functions such as education, healthcare, and public safety would still need to be maintained. The goal is not to eliminate government services but to streamline them to be more efficient and effective.

4. Conclusion: A Pathway Forward for Small-Government Democrats with UBI

A small-government Democrat platform that incorporates universal basic income represents a compelling vision for a more efficient, compassionate government that respects individual freedom. By prioritizing direct support over bureaucratic welfare systems, this model could attract a broad coalition of voters seeking economic security without extensive government intervention.

This approach allows Democrats to redefine their role in a way that aligns with values of individual empowerment, streamlined governance, and economic resilience. While challenges remain in funding and implementing UBI effectively, a small-government framework offers a pathway for the Democratic Party to innovate its policies and reconnect with a diverse, forward-looking electorate. This model would not only address Americans’ immediate financial needs but also promote a more dynamic and resilient society where individuals are empowered to shape their futures independently, supported by a government that enables rather than controls.