Socialist Progressives
Related: About this forumA $1,000 per month cash handout would grow the economy by $2.5 trillion, new study says
Redistribution of wealth would do WHAT?Source: CNBC, by Catherine Clifford
The larger the universal basic income, the greater the benefit to the economy, according to the report.
"When paying for the policy by increasing taxes on households rather than paying for the policy with debt, the policy is not expansionary," the report says. "In effect, it is giving to households with one hand what it is taking away with the other. There is no net effect."
Read it all at: https://www.cnbc.com/2017/08/31/1000-per-month-cash-handout-would-grow-the-economy-by-2-point-5-trillion.html
Not Ruth
(3,613 posts)I like the sound of that
wasupaloopa
(4,516 posts)and deeper in the hole. Besides it ain't us who will have to pay it back!
Jam today, no jam tomorrow
yallerdawg
(16,104 posts)The point is:
"When paying for the policy by increasing taxes on households rather than paying for the policy with debt, the policy is not expansionary," the report says. "In effect, it is giving to households with one hand what it is taking away with the other. There is no net effect."
And because the funds come from currency already in circulation the value of the dollar has not changed and as such no inflation. Very very interesting study.
wasupaloopa
(4,516 posts)There is no free lunch never was and never will be
There are some basic rules in economics.
This is nothing but wishful thinking.
You will cause inflation by flooding the market with money and establish a new floor just higher than the last one
yallerdawg
(16,104 posts)Notice how we actually recovered from the Great Depression? DEBT and GROWTH!!!
Voltaire2
(14,677 posts)deficits aren't a problem when you have a fiat currency. We've established that there really isn't a problem with long term deficit spending, we've been doing it for 80 years or so.
Deficit hawks just want to justify taking away benefits while giving the rich tax cuts.
Deficits are paid back in bonds over time. T-bills are the safest investment on the planet.
Voltaire2
(14,677 posts)We would all be free to pursue our passions. It would transform society.
But we can't have nice things.
yallerdawg
(16,104 posts)From womb to tomb, they beat it into us - our only value is in "our work."
And a relentless need for "more."
Hoyt
(54,770 posts)the $2.5 Trillion benefit is achieved by increasing the federal deficit over $150 BILLION a month (150 million adults X $1000). Sorry I don't buy that will work long-term, or even short-term.
From the OP:
"These estimates are based on a universal basic income paid for by increasing the federal deficit. As part of the study, the researchers also calculated the effect to the economy of paying for the cash handouts by increasing taxes. In that case, there would be no net benefit to the economy, the report finds.
"When paying for the policy by increasing taxes on households rather than paying for the policy with debt, the policy is not expansionary," the report says. "In effect, it is giving to households with one hand what it is taking away with the other. There is no net effect."
yallerdawg
(16,104 posts)to increase "aggregate demand: in addition to the increase in output, employment, labor force participation, prices, and wages all go up, as well. Since the policy is deficit financed, it increases the governments liabilities, but because of the stimulative effect of the policy, that increase in debt is less than it would be if the policy did not increase aggregate demand."
The economic theory today is that lack of demand directly related to stagnant wages is holding our economy back. Stimulus will grow us out of the doldrums.
And as we all know, once you have something (UBI), it's very hard to take it away (ACA).
All we need is 50% plus 1 of American voters to support progressive taxation that will continue Universal Basic Income and the benefits associated with greater economic and personal freedom.
Hoyt
(54,770 posts)financed by increasing the National Debt.
Now, if you slashed military, and raised taxes on upper 50% or so, that might break us even -- every think considered -- for a year or two. But, then, both of those things would be a deterrent to stimulus (although it's time we do something drastic with military spending, it is a big part of our economy). I think Kenyes would laugh at the OP. I'm glad it was offered though, because we need to start thinking about how this is going to work down the road and stop trying to prop up coal mining, etc.
I do think we are going to have to do something as automation, etc., takes over. But the OP is more than a pipe-dream, more like mainlining Fentanyl.
yallerdawg
(16,104 posts)You want - need - Universal Basic Income to become a reality?
You won't get it taxing the more affluent and then cutting a check for everyone else! The Republican response is simple - and familiar, if you follow UBI (even at DU) - "We can't afford it and it will never pass!"
If we could have UBI without increasing taxes, stimulate and grow the economy, at least get back to full employment for anyone who wants a full time job, and do this with Republicans who are starting to consider this - we can begin to make the changes we need to ease into the inevitable economic historical evolution away from the excesses and failures of capitalism.
If we control what happens with the "profits" from production, then we pretty much "own" the means of production.