RE: Universal Basic Income Profitable? - Yes!

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Universal Basic Income Profitable? - Yes!

in economics •  7 years ago 

This is a great analysis. I think UBI is going to be a deathly serious subject in the next decade and it's frustrating to see lots of half-baked reasons why it doesn't work - especially when there are studies going on all around the world.

And it's not just UBI-specific studies. Giving a poor person $10,000 is going to stimulate the economy in the short term more than giving it to a rich person - the poor person will likely spend it on goods and services, so the money goes right back into the system. A rich person will invest or save it as it does little to improve their already adequate cash flow.

At the end of the day UBI isn't about wealth redistribution. It's about sustaining economic growth. I believe a rising tide lifts all boats - that is, a growing economy is good for EVERYBODY. In this sense, UBI is an economic problem, not a welfare one.

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Standing says just knowing they have the safety net means people relax, plan, join in activities and socialize more. They lose their sense of shame, poverty, and inferiority. Violence and crime decline. They feel able to take a job. Their attitudes change, their relationships change, the family get along better, kids can stay in school .... it literally makes all the difference in the world. So yes, you're right - it's all about economic growth.