Reply to post: How basic income would change the economy

Basic income after automation? That’s not how capitalism works

Casapaz

How basic income would change the economy

So, one of the main reasons against basic income is it's "unaffordable" and if the government spent all that money on its citizens the government would have to raise taxes dampening the economy.

There are two ways this plays out: the government raises taxes on the wealthy and some of the upper middle incomes which causes them to look elsewhere in the world to live. "But the rich would leave"...and less taxes from them etc.

Yes the pound would take a short term hit but the economy would recover fast because of increased spending power of all the citizens plus tourism, plus weaker currency means greater competitiveness for manufacturing.

The government impements UBI but doesn't raise taxes enough to cover for it. The pound would take a hit but the rich wouldn't flee as much. At least the "stimulus money" is directed where it will actually be spent.

If the UBI amount is modest amount initially, it might not cause a shock and we could just begin to forget what income insecurity and poverty are.

In either scenario the outcome seems seems better than the current situation of increasing poverty, income inequality, and the government trying to make up for the loss in GDP by getting more rich immigrants or not rich immigrants that the government thinks will boost GDP.

The welfare trap and income tested benefits disincentives working. Basically the government plus the rich sold us out and expect we keep paying for it with the majority of our measly paying jobs. (Because money is what you pay, value is what you give when you're working )

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