Note: I'm talking about the cost of a UBI, and the cost only. Not the social benefits, or the political barriers, or all that stuff. Just the cost.
If you've been following American politics for a while, then you've probably heard of Andrew Yang. He wants to give everyone over 18 and under 65 $1000 every month, free and clear, and no questions asked.
However, how do we (or in this case, the government) pay for it ($2.4+ trillion)?
On his site, Andrew Yang suggests the following:
- 500 billion saved from welfare programs (you either chose UBI or current benefits)
- 100 billion saved from healthcare related needs
- 800 billion generated from a VAT
- 600 billion from economic growth
This all adds up to $2 trillion.
500 billion saved from welfare. Okay. Another $800 billion generated from a tax. Okay.
But what about the $100 billion saved from healthcare needs? Is that an actually reason, which studies to back it up?
Also, at what point do we keep some of that money as profit?
So with all of these factors combined - can we fully pay for a UBI?