alt Hacker News> UBI is first introduced at any arbitrarily low amount higher than $0. The fiscal authority then gradually increases the payout until the maximum-sustainable level of UBI spending is discovered
> Notably, since this policy is proposed to be 'funded' by a monetary policy contraction, it in theory requires no tax or consolidation of existing government programs to implement; nor does it necessarily imply a net increase in the overall money supply.'
What happen if this CBI maximum happen to be a very low amount? Too low to be an ‘income’, for example 10$.
I’m saying that because there has been periods where monetary policies have already been very tight [0] (recently following the subprime crash). According to my understanding of the paper, in the periods there would be no leeway to fund this CBI.
[0] https://www.statista.com/statistics/1470953/monthy-fed-funds...
Replies
> What happen if this CBI maximum happen to be a very low amount?
It shouldn't need to be pointed out that that's deeply unlikely, but I'll point it out anyway.
The available monetary contraction is orders of magnitude larger. Economic conditions where it would be constrained to such a low level would likely be rare and temporary. And, it's generally accepted that direct cash transfers increase spending.
then everyone gets a free $10 Christmas card every year to say thanks for being a citizen, and at least you didn't crash the economy?
Yours is the first comment that suggests you read the article. At least kinda? Not sure anymore.
US banks create, though lending, 10.7 Trillion per year. If money creation though lending was shut down entirely it would work out to something like 3500 per person per month. You would have the same amount of money in circulation.
Rather than trickle down though clogged tubes it would stimulate spending directly. The economy would then greatly favor companies that do things that are useful to citizens.
Lowering interest rates might stimulate some part but I've never seen it affect my paycheck directly. If the measures don't influence peoples salaries their purchase power doesn't change much and the measures have little effect on that part of the economy that is relevant to citizens. You might improve the economy, if you don't improve quality of life simultaneously the economy increasingly becomes something unrelated to human life - which is bad.