The merits of UBI are obvious, so this essay will focus on how to pay for it.
A public central bank will provide UBI for everyone. Here is the proof…
While welfare penalises participation in the economy, with UBI one is free to take a job or create your own products or services without having your UBI clawed back.
Since UBI is not welfare, payment is not made per child, and therefore does not encourage overpopulation (a valid concern of critics).
Basic Income has proven to lead to a renaissance of ingenuity and creativity, rather than the disgrace and discouragement of welfare.
OK, here are the numbers !!
Taking the Canadian population of 30 million as the example, then if every adult received $12,000 per year that would amount to 360 billion.
Since private banks create Canadian dollars out of nothing, then so can the government as was the case prior to 1973 by the Banque du Canada, saving interest payments of 60 billion.
The public Banque du Canada would need to introduce new currency as the economy grows to maintain price stability. Assuming a growth rate of 2% on a GDP of 1.5 trillion that amounts to 300 billion.
To sum up (in billions)
(360) – Universal Basic Income
60 – Interest payments
300 – Price stabilisation
This achieves both price stability, as well as full employment since the scarcity of currency is lifted leading to the expansion of economic activities to the next constraint, namely skills.
The $360 billion is created by the country anyway.
It is up to us to decide whether it:
- goes to the banks, or
- comes to the people.
It is access to this volcano of currency that empowers a small group to run corporations, bribe politicians, grease bureaucrats, influence courts, pollute our planet, cause wars, dispossess and enslave us.
By contrast, money given back to the people (who produce the wealth in the first place) will be either spent stimulating the economy, or saved creating capital for growth.