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This is a good question. To be concrete, I think it's easier to pick a single number - this is arbitrary, but I'll go with the figure of $10,000 offered in the proposal by Charles Murray (one of the most prominent conservative supporters of a universal basic income). I'll assume that this is offered to every adult in the US age 18 and over, expanding ... 9 Thanks to densp for identifying this paper. It refers to a major pilot project undertaken in Namibia Background: The Basic Income Grant (BIG) pilot project took place in the Otjivero-Omitara area, about 100 kilometres east of Windhoek. All residents below the age of 60 years receive a Basic Income Grant of N$100 per person per month, without any ...

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If the foreign country sends goods, then demand for the home currency increases, so the price level falls. If the foreign country sends currency (which substitutes for the home currency), then demand for the home currency falls, so the price level rises.

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A new report by the Roosevelt Institute answers exactly that using a Keynesian, Stock-Flow-Consistent model calibrated to the US. According to their result, when distributional changes are considered, an UBI would considerably stimulate the economy. The Executive Summary reads: How would a massive federal spending program like a universal basic income (...

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Assume that a big country decides that, from here on, it will distribute for free 1 Kgr of bread to every citizen of a neighbor small country. The bread will be made, transported and distributed with big country resources (raw materials, labor, equipment, wheels, etc). Moreover, big country's representatives will sit around while local citizens eat it. Will ...

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As for your first question: income elasticity of demand is just a percentage change in quantity demanded divided by a percentage change in demand. If you divide two things that are equal you get one: $\frac{a}{b}=1 \iff a=b$ (as long as $b \neq 0$). Same thing goes for income elasticity of demand, $1$ is not just some random value that was chosen to separate ...

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There surely is research about the complement(s) of the (low tech) "primitive businesses", i.e. the high-tech and/or innovative businesses. The US CES for instance publishes a BDS-HT (Business Dynamics Statistics - High Tech) report. You can compare these with the core BDS data and get an idea how the high-tech sector differs. The US CES method of high-tech ...

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Short Answer: Probably. For some goods. I guess. Longer Answer: Assuming two toy economies and three goods, increasing the supply of good in one economy relative to the supply of goods of the other two classes will decrease its trade value relative to them. Prior to the transfer (at $t_0$) they'd look like: $$E_1(t_0)=\{a_1x,\ b_1y,\ c_1z\}$$ E_2(t_0)=...

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Theoretically basic income might have a tendency to increase inflation. But that largely depends on how much is the basic income provided. Usually, the idea of basic income itself means that it is 'basic' and is just sufficient for a subsistence. With such an income level, the problem of inflation does not crop up really. However, basic income might have ...

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Has anything like his proposed commons capital depository ever been tried in practice? Sweden had such experiment, but in a much lower scale than it was originally planned and of what Varoufakis is calling for. This was ultimately due to the opposition of employers/capitalists, and the election of a right-wing government. The idea came from the trade ...

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In short, inflation affects a basic income guarantee exactly the same as any other cashflow in the affected currency. It is possible to create a connection by funding a basic income benefit with inflationary measures. However, the resulting inflation will be spread throughout the economy, and would apply even if those measures were taken to fund some ...

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This is a huge question and I doubt any SE answer could address this fully, but I would like to elaborate on a few points. Effects of the Alaska Permanent Fund Dividend I would argue that the primary success of the Alaska Permanent Fund Dividend is its positive effect on decreasing poverty. The effect on employment seems to be more neutral. Here is an ...

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But what about the $100 billion saved from healthcare needs? Is that an actually reason, which studies to back it up? I'm not sure anyone can answer this for you if you want to ignore social benefits. It's a pretty common conversation-point that healthcare expenditures can be reduced by redirecting public spending toward addressing key determinants of ... 2 Since you say that you want to ignore social benefits etc. then answer is trivial. As long as the cost of UBI is not so high that taxes would cross the peak of Laffer curve then answer is always yes, after the peak always no (peak of Laffer curve is a point of maximum possible revenue government can extract from economy through taxation). On left side of ... 2 There is a lot of research into this area. You might want to look into the papers of Angus Deaton, Thomas Picketty, Gabriel Zucman, Emanuel Saez or Branko Milanovic for starters. Especially, Emanuel Saez directly focuses on optimal taxation under different social preferences - including utilitarianism and ralwsianism where reducing inequality matters. ... 1 Try work it out step by step and don't just concentrate on the math. Suppose Arista has income of$w$, and the price of whatzits is$p$. She spends 10% of that on whatzits, so how many whatzits does she buy? Let's call this$q$. Now suppose income is now$x \cdot w$(so if her income increases by 3% then$x$is 1.03.) The price of whatzits is still the ... 1 Onurcanbektas, I really like your thought process. The problem with your mental model is that you've assumed economic output is exogenous. However, in the real world (most) jobs produce economic output. This output then increases the size of the pie, allowing people to be, on average, richer. However, from a societal perspective, I believe we will ... 1 American economic theorist Henry George wrote about precisely this issue in his famous work Progress and Poverty published in the late 1800s, and based on his observations on the economic development of San Francisco during the gold rush. His argument was that increasing economic development primarily benefitted landowners, at the expense of both capital ... 1 Another name for basic income is citizens dividend, the idea being that the income is a dividend from the nation's earnings from natural resources like land and oil. In most countries only a select few of the population will be deemed as owning these resources outright with the rest of the population having to pay for access to what by rights they should be ... 1 Similarly to how you mention that high salaries lead to the population being able to sustain a high cost of living, we can look at goods and services from the supply side. As the minimum wage and wages overall are very high in Switzerland, meaning high labor and input costs, high prices compensate for it. Furthermore, there is also an element of low income ... 1 'Universal basic income' has largely been in the public dialogue, to counter the negative consequences of automation - or some other reasons for mass unemployment. In such a context, it is proposed as a last resort if there is an extreme decline in Labour demand. It can however, be used as an alternative to basic unemployment benefits, or to simply combat ... 1 Brian's answer surely hit a major part of the issue - the level of the UBI. Yet, there are other aspects of the problem. People like to work. There is a huge amount of sociological literature showing that people derive considerable non-pecuniary benefits from work, or alternative, that lack of work leads to several personal (and social) undesirables (for ... 1 The level of the basic income would have to be set at a level that the majority of the population is still willing to work to get more money than the basic amount, so that required work is still done. (The robots are not going to be taking over all the jobs for some time). From the proposals I have seen, it would be near the poverty level in the developed ... 1 . From Investopedia Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly. The Consumer Price Index (CPI) is your best measure of inflation ... 1 I guess the discount holds for the 100 first units of food even if she buys more than 100. Therefore the new budget line is \begin{equation*} \left\{ \begin{array}{ll} & 200 = 0.2 F + 2C \text{ if } F < 100 \\ & 200 = 0.2 \times 100 + F-100+2C \text{ otherwise } \end{array} \right. \end{equation*} which is continuous. 1 So I have done some additional research, I haven't found the resource I am looking for but I do have some worth posting here. When I do find something better, I will update this answer. Raventós, Daniel; Wark, Julie. "General Strike in the Kingdom of Spain: the Political Economy and Basic Income" "Opendemocracy", 30 March 2012 Very much a news article. ... 1 It depends what formula you apply. If we apply the formula as laid out by Philippe Van Parijs and Yannick Vanderborght to the United States, for a UBI consisting of 25 percent of GDP distributed on a per-capita basis, amounts to a new entitlement program costing$4.8 trillion dollars per year at a time when the United States is already facing a \$1 trillion ...

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