SI
SI
discoversearch

Strategies & Market Trends : Universal basic income (UBI)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: elpolvo8/31/2017 7:04:54 PM
  Read Replies (1) of 132
 
pretty much a "nothing" story but the topic is right for this thread.
some people ARE thinking about a UBI.

Would a Universal Basic Income Be Good for the Economy?

A study from the Roosevelt Institute has concluded exactly that. It suggests that a government handout to every American of $12,000 a year, no strings attached, would boost the U.S. economy to the tune of a cumulative 12.5 to 13 percent over eight years. The report also says it would create more jobs.

Okay, time for the massive grain(s) of salt: the report's view is highly controversial, for a couple of reasons. First, the economic model it uses assumes that the U.S. economy is sitting in a state of artificially low demand. One reason for this, some economists think, is that income inequality has led a few rich people to hoard a disproportionate amount of wealth, instead of spending it, which acts to have a chilling effect on economic activity. (This is a view most notably espoused by Thomas Piketty—see "Technology and Inequality.") Assuming that's the case, a huge cash infusion from the government might be worth it because, the model suggests, it would lead to economic growth worth around $2.5 trillion, as well as the creation of millions of jobs. As Vox points out in its analysis of the report, though, this is an opinion that many economists disagree with.

A second assumption is potentially even more misleading. The Roosevelt Institute assumes that people given a basic income would not be inclined to work less. They cite several small-scale studies that support this. But as we have written before in an in-depth look at the impact a universal basic income would have in the U.S., the evidence is murky at best. That makes such a scheme incredibly risky—both from a labor standpoint and, if the return in economic activity is no guarantee, for its overall pricetag


technologyreview.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

Copyright © 1995-2017 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.