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Grow the Economy…By Handing Out Free Cash Each Month?
Posted On 05 Sep 2017
The hot new idea among fans of Bernie Sanders and other democratic socialists – including none other than Facebook CEO Mark Zuckerberg – is a concept that’s come to be known as “universal basic income.” The general idea is that the federal government will simply give out a certain amount of money to every American adult each month…and presto, Americans will be freed from the wage slavery that currently keeps talented, creative free spirits chained to a desk for sixty hours a week. These young liberals not only claim that such an idea would reform the ugly capitalistic society we’ve built, but that it will be absolutely necessary in the face of the coming robotic revolution, where millions will lose their jobs to computers.
Now this idea, long relegated to the halls of Reddit and other online hangouts where full-time “gamers” fantasize about a world where they can get paid to do nothing, is going mainstream. According to an article this week on CNBC.com, a new study proclaims that by giving every American adult $1,000 a month, we can grow the economy by $2.5 trillion by 2025. By god, why haven’t we started??
From CNBC:
The report was released in August by the left-leaning Roosevelt Institute. Roosevelt research director Marshall Steinbaum, Michalis Nikiforos at Bard College’s Levy Institute, and Gennaro Zezza at the University of Cassino and Southern Lazio in Italy co-authored the study.
The study made economic forecasts for three proposals: a full universal basic income in which every adult gets $1,000 a month ($12,000 a year), a partial basic income in which every adult gets $500 a month ($6,000 a year) and a child allowance in which parents get $250 a month ($3,000 a year).
The larger the universal basic income, the greater the benefit to the economy, according to the report.
Well, well, well. We’re not economists, but that last sentence makes us wonder…why stop at $1,000 a month? Why not $10,000? Why not $1M? If it’s true that the larger the UBI, the greater the economy, then there’s no point beating around the bush, is there? We might as well go for broke.
No pun intended.
Which brings us to one tiny, nagging question: How would we pay for such a scheme? Did someone invent a money-making machine without telling us?
No, the study’s author’s came to these conclusions by assuming that the U.S. would dispense this monthly income by simply “increasing the federal deficit.” Which, duh, why didn’t we think of that? It’s like when you realize there’s a little too much month at the end of your money and you still want that killer new game system on sale at Best Buy. You can have it! Just…buy it! Sure, you’ll increase your debt, but who cares? It’s just numbers.
But, okay, what if we wanted to have universal basic income but also pay for it in a responsible manner, such as raising taxes? Well, it turns out the study looked into that and the conclusions aren’t good. All of the benefits to the economy were wiped out. This is not only unfortunate, it also marks the first time in history that a left-wing think tank found no benefit to raising taxes. The Roosevelt Institute will probably be hearing from their donors on that one.
Great plan. Lets start off using the Zuckerberg BILLIONS. Once we give those away we will jump to George Soros and then the Execs at GOOGLE. That money should keep us going for at least a year
Oh, add all of politicians such as senators and congress pay…bet this shit stops real quick.
melmack 1, sign me up.
melmack,
Yes lets start with Zuckerberg, than Google, than Hollywood, than MSM, Politicians that would be a great start. Than start with Soros and all those so called foundations that want to help the poor?? There are so many we could also pay off the Debt. The government made the debt not the citizens so they should pay it back. So that money should be paid back by everyone in government that had a hand in creating this. They are so caring about the world, so they should put their money (not ours) where their heart is!!!
EQUITABLE TAX RECONFIGURATION-PLUS
Would create >4% GDP growth and 4-6 million jobs per year:
Congress and the Administration are contemplating tax changes. Sadly, it appears that both may be led by ignorance, bias, and axes to grind which is a losing formula for We, the People.
There should be a discussion regarding the concepts of evolutionary versus revolutionary changes. There is substantially greater risk of problematic and unintended consequences
when employing revolutionary changes.
It is being promoted by “talking heads” and politicians that a reduction of the corporate tax rate from 35% to 20% would create jobs. The jobs created would be insignificant, thus that promotion is nonsense, at best. Yes, it would offer greater profits for corporations, which would benefit stockholders. That would reflect very limited economic benefits, which would be further reduced by the hit to our national debt.
The main catalyst to enable businesses to increase sales and profits is energized consumers.
What effect upon consumers would a permanent income tax credit equal to 100% of the Social Security taxes paid on the first $40,000 of income? The maximum credit would be $2,480 per year ($206.67 per month).
The effect upon consumers would be substantial, thus benefiting business sales and profits, i.e., the old “two birds with one stone”.
The funding of this tax credit would come from the elimination of the “ceiling” upon which Social Security taxes are levied and by making all other types of income subject to SS tax, without limitations.
An additional “adjustment” to Social Security should be a ten percent increase to SS recipients.
Since our economics would be greatly stimulated, a different method of controlling the pace of the economy would be initiated. A separate withholding would be established and would be controlled by the Federal Reserve Board. The Fed, on a monthly basis, would publish a factor (a % of gross pay) which would cause a reduction or increase in net pay, thus affecting the strength of our economics, immediately.
Interest rates would be market based, i.e., the Fed would not control rates via Discount and Federal Funds rates.
PLUS:
1. Eliminate the anti-trust exemption for unions – http://writerbeat.com/articles/7399-TRADE-AND-SERVICE-UNIONS
2. Reverse all minimum wage laws – http://writerbeat.com/articles/11328-THE-CONCEPT-OF-ldquo-MINIMUM-WAGE-rdquo-IS-A-CANCER-TO-OUR-NATION-S-ECONOMICS-SINCE-IT-TENDS-TO-CREATE-A-PERMANENT-UNDERCLASS-AND-
mz
mikiesmoky@aol.com
04/21/17
Both U and the study’s authors have this about right. ‘Cuz, Dad Blast It! friends and neighbors. in economics, money isn’t everything–it’s the only thing.
Through all the pettifoggery, I hope everyone focuses on the plain fact, that when the Big Bourgeois have a problem that everyone’s hero, Mo’ Money, can fix, they, “Just click on Print.”
I never heard a more foolish idea in my life. Why don’t they just put screen doors on are nuclear subs????? It would let in more air.
Don’t give the Democrats any new Ideas like that to save on military costs.
OH That is really funny LOL Thanks
I agree as long as I receive at least $10000.00 per month, what with the sky high cost of Obama care, at $1000.00 per month, with a $12,000.00 per annum deductible, I need more than $1000.00 per month. If Mr. Zuckerberg wants to start making direct deposits into my checking account, have him contact me and I will give him the account and routing numbers…..
That liberal puke wouldn’t know what hit him…hey Mark FUCK YOU!!!!
is it socialism by taking money from taxpayers to give to the non working welfare recepients ,money isnt free
Another goofy socialist idea from the Democrats. I am 76 years old and have lived through so many of these social engineering schemes from the Democratic party and they have all been huge failures. So why not this one. We will raise everyones taxes so everyone can get the money back as universal income.
these young,spirited “liberals” have yet to hear the story of the hungry man who from his gut,slaughtered his ONE mama pig, to eat her…Voila! No mama pig,no more pigs. to eat…moral: If Ur a hog,I guess U might not like this.
To These liberal slobs I say Get a Life- work-save-njoy YOUR eaarnings, not MINE. Sad,they never learned how to work, save,or perform as adults…thus they don’t deserve to eat. Im not their port in every storm. I worked 3 hrs a day all 4yrs of Collg, graduated w/ a balance of .11c in the bank. Im proud of all 11 of ’em too. & this ddnt happn the last Century, durng the VietNam war…But- some were meant to remain a worthless P.O.S…..
So quit Ur goddam whining. Get a life.
Sadly, the author of this piece left out a key element of the universal income plan. Eliminating other entitlement programs. Most serious studies (at least that I’ve read) include the elimination of welfare, and in some cases social security to the plan. from there you can agree/disagree with the models, but before we poo poo an idea, let’s be make sure we get all of the facts correct.
Zuckerberg typical big mouth liberal who wants to use taxpayers dollars, if he feels the need to help the lower income people he should use his money, its the people who made him rich so give back.
We have universal basic income its called welfare. If people think giving out a certain amount of money to every American adult each
month…and presto, Americans will be freed from the wage slavery that
currently keeps talented, creative free spirits chained to a desk for
sixty hours a week. It would inspire a few but for most it would make life one big party without any responsibility or accountability. At least until the bill comes due an we end up with the economy of Venezuela or Greece. Of course Facebook CEO Mark Zuckerberg will make even more billions because people will have even more time to go on Facebook, funny considering he wants other people to pay for universal basic income.