The universal basic income is winning in popularity. The idea is that everyone gets a certain amount of money. If they work or not, disabled or not. As there are no tests you could terminate quite some bureaucrats and use the saved money to pay to the people.
But the basic income has a problem. This is the problem that there is with all welfare systems. It needs to get financed.
If we look at the proposal from Democratic Presidential candidate Wang than we see how big it gets. What if every American citizen would get 1,000 USD a month? It would be 3 trillion a year or 250 billion a month. Or 42% of all government spending. Where will it come from?
It would mean that they spend more money on the universal basic income than on defense, education and healthcare combined.
How would a bankrupted government be capable of making such a payment?
But candidate Wang is a supporter of the modern monetary theory. So they could simply start the printing press.
This didn’t work well in the past and it is highly doubtful that this utopian idea would become a reality.
Then we have an impact on the labor market. Why go work on a side job if you make 1,000 a month? This is also exactly what happened in Finland when they experimented with the basic income.
Quite some supporters of the basic income point out the issues with the welfare state. The bureaucracy, the lack of respect for people. But when we keep this min mind it really smart to let the government-run an Ubi program?
Then we have a final claim, it would end dependence. But is this really the case? The basic income is just another form of welfare.
It might be no surprise that I’m not a supporter of the welfare programs. Actually, I would abolish it. Just for humanity.
I doubt the basic income idea will go away. So let’s get the facts out.