The economy is booming, yet inequality is rising. This model is still a rough model with just with groups an average low, medium and high income for Germany. The side effects of an universal basic income with some people deciding to work less and others to come up with new business ideas next to all the benefits for our society from people who choose unpaid caring activities are not activated and the effects from automation and digitization neither. So while without these effects there seems to be no need to introduce a universal basic income, we only have to look at the rising populism to see the need coming. The aim of this model is to show the dimensions of such a measure. How much would it cost, what would be saved, and how could it be financed. It couldn’t come without taking more money from the rich. In the current settings there are just 1 million rich people whose income would be lowered while almost 40 million medium incomes would keep their average and almost 40 million people with low income would get more. What this model doesn’t show but others on know-why.net do: This money for the poor would fuel the real economy and it would be money that would to a great part be spent detached from the real economy for creative financial products. However, the 1 million rich people this model plans to take money from are very influential.
- 10 years to show effects of more automation/digitization
- theoretical effects on inflation
- using average values we do not account for effects of progressive taxation
- Kai: I am not sure if we have to distinguish between spendings with national value creation and those that lead to imports.