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Universal basic income is the principal that each citizen in a country gets a fixed amount of money from the government which should suffice for an individual to pay for at least his basic needs each month.

A couple said advantages of a universal basic income are that people would have more free time resulting in more cultural development, it could replace the current way a lot of countries implement a social safety net and some people even say UBI might be cheaper than the current traditional safety net-systems.

Personally I don't know if it's even possible for most countries/economics to implement UBI without having a massive increase in government spending, but let's for the sake of this question assume a country (like Belgium or the Netherlands) would have succeeded to do that.

Wouldn't this still cause massive economic problems? First of all less people would choose to work which results in less products being manufactured and less services provided. This would make your economic slow down, shrink the country's GDP and the amount of supply for a lot of stuff would be less.

But in the mean time there would be more money in circulation.

Wouldn't this create a massive inflation and stagnation of the economy resulting in a stagnation? Due to less being produced (less people having jobs) the economy would stop growing while having more money in circulation in the mean time.

How would a country implement UBI while avoiding mentioned problems?

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  • $\begingroup$ Your question desperately needs details and clarity as it is it’s unanswerable with facts and data or theories and opinion questions are off topic on this site. What do you define as successful implementation? UBI at what level? 0.1 euro UBI would have trivial effect on economy 10000 euro UBI would be different. There is no general definition of “basic need” what do you consider sufficient to meet basic needs here in the Netherlands or in Belgium? Also basic needs differ by region. A person will not need the same amount of money to have the same level of welfare in Randstad as someone $\endgroup$
    – 1muflon1
    May 6, 2022 at 8:16
  • $\begingroup$ Living in Friesland. Are you talking about national UBI or provincial UBI? How much slowing of an economy and unemployment you consider “massive economic problem”? What is your cutoff for “massive” inflation? Also you make in your question assertions like that would increase money in circulation which are unfounded, please provide your sources for such statements of fact or if they are speculations make it clear $\endgroup$
    – 1muflon1
    May 6, 2022 at 8:20
  • $\begingroup$ One possible idea is to increase taxes by say 10% on everyone, then equally divide up that extra 10% tax among all the citizens. I happen to like that idea because it automatically adjusts itself to ensure it remains sustainable, and if we are scared of instability, it can be started at a really low level like 2% and increased $\endgroup$
    – user253751
    May 6, 2022 at 12:57

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