The biggest issue with UBI is that it will never work, the math just doesn’t add up.
- Where does the money come from? The government only really has one source of money and that is taxes, so to pay UBI it would either need to raise taxes or massive cut on other expanses.
- Should a solution be found for 1) and everyone (universal means that everyone will automatically qualify for it, no questions asked) will be paid UBI then the prices for housing, food and all the other basic things will skyrocket because a) of the higher demand and b) because of the higher amount of money in circulation creating inflation.
- The higher prices will mean that the amount of UBI money must be raised, which means we are back at 1)
Where does the money come from? The government only really has one source of money and that is taxes, so to pay UBI it would either need to raise taxes or massive cut on other expanses.
How’s that National Debt looking?
I like the idea of a “Citizen’s Dividend” funded from taxes on pollution, carbon Emmissions, etc. We can throw a wealth tax for billionaires in there too.
Taxes on pollution, carbon emissions etc. would raise the costs of living and would therefore mean that the UBI would need to be higher to accommodate for the higher costs. Which means that a huge part of these taxes would be payed in proxy by the government. Rendering it useless as a method to fund the UBI.
The costs for a UBI are just so enormous, and all on the shoulders of the working class, because those are the majority of tax payers.
If you have a million people, old, young, in between, and a working rate of 60% (because the other 40% are too old or too young or can’t/doesn’ t want to work) and pay everyone 1000$ as UBI. That would mean that a billion dollars has to be payed by 600.000 people, so every working citizen has to pay 1667$ to receive 1000$ in return. This means that working people don’t get a UBI because they have to pay more then they get.
And those 1667$ taxes would only be for the UBI, meaning that the taxes would be much higher to pay for all the other costs that the state has.
This is a vast oversimplification. A UBI could replace a vast amount of existing welfare programs in a much more efficient way which would have a fraction of the overhead. There are tons of other proposals to fund a UBI such as a negative interest rate. Likely there would be many sources of funding, including money which now goes to existing wasteful welfare spending.
Tax doesn’t finance spending. That national debt is owed to no one. Money is created out of thin air, my friend, and always has been since fiat money was introduced. When the government spends, they just adjust the number on their account; they’ve come right out and admitted this.
“We can’t afford that” is a lie. They can afford absolutely anything, because they own the money, and they own the debt in that money - it’s a constructed fiction.
Printing large amounts of money out of thin air is a great way to turn a valuable currency into worthless Monopoly® money via inflation. That is basic economics. There are lots of examples for that in history.
Inflation is not a guarantee, that depends on the actual economy. Japan is massively in deficit and yet is seeing deflation.
