‪The Unconditional Basic Income Economy - part 1 ‬

A model for the financial stability of the state and economy in a social state, and how an Unconditional Basic Income [UBI] could be realized.

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Complete entry

Posted by CygnusX1  on  01/29  at  05:58 PM

Excuse me, but this makes absolutely no sense to me at all?

This hypothesis begins by reconciling all “coarse categories” and parties to sum = zero, and does not recognise that currently richer parties are hoarding funds, and that these inhibit capital flows, (monies excluded from the sum zero system)? And this is aside from any tax inequalities between parties towards income and savings, investments etc.

In the second part it makes an assumption that any deficiencies for UBI will be made up and reconciled through “increase in wages!” and thus income tax revenue increases returned back to the state? Meaning effectively, that the economy will always support any short falls, regardless of economic downturn, effects on GDP and subsequent burden of national debts?

Yet if the economy enters downturn or recession, it will most likely be due to decrease in production and the added burden of the state UBI?

What if monies are drained from the zero sum system to hoarding and savings and tax havens abroad? The burden is once again upon the economy to make up any shortfalls, (which I guess is pretty much what is happening today anyhow)?

Obviously I am missing something here, can anyone correct my ignorance?

UBI is a great idea in supporting a future scenario of even greater mass unemployment, yet it all relies on the basis and foundation of a stable economy, if only economics were that simple, the world would not be in recession now?

Posted by tyler  on  01/29  at  08:00 PM

Cool model.

The reason why it doesn't make sense is because it fails to include the fiat money system which requires the state to pay interest to a central bank for all money issued.

Also, Cygnus is right b/c we don't have the foundation for a stable economy in the first place. Our model requires infinite growth = not possible in a limited biosphere.

A UBI is perfect for eradicating poverty short-term but a realistic economic model must take into account both limited resources and 90% unemployment.

Suggest check out equalmoney.org for a realistic scenario.

Posted by Tschäff Reisberg  on  01/30  at  10:37 AM

People who wish to earn more than the meger wage the basic income allows and those who desire their work. This topic is heating up because the MMTer's decades long struggle to get govt to offer a job guarentee is finally getting noticed given our bad economy and gimmicky, corrupt stimulus efforts. Some economists have different values, and if it is possible to create a basic income guarentee (BIG in the academic literature) without inflation or hyperinflation they would prefer that. Good discussion about all of this at heteconomist.com

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