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Neither party has embraced UBI but there is widespread support for it across the political spectrum. Milton Friedman, a conservative economist, proposed UBI in 1962. President Nixon, a Republican, tried to get it through Congress in the 1970’s. Conservatives like it because it is market oriented and doesn’t require a federal bureaucracy. Liberals like it because it reduces income inequality. Current proponents span the political spectrum as well. Sam Altman (ChatGPT) and Elon Musk are supporters. UBI polls well with the public well too. Especially the young.
Every adult US citizen. In my vision, immigrants will receive the support they currently do, but citizenship will be required to receive a Share. The US makes acquiring citizenship less onerous than many countries.
Universal basic income (UBI) is a fixed amount given to all adults without any strings attached: You get the same amount whatever your income. Guaranteed basic income (GBI) is a supplement to bring lower incomes up to a minimum. A negative income tax (NIT) supplements a low income: if you earn below a certain amount, you get a tax “refund” to supplement your earnings. GBI and NIT as well as other “means tested” benefits create a disincentive to work since they shrink as earnings grow. UBI does not disincentivize work since everyone gets it regardless of income. Shares in America compares these options in much more detail, including tax implications.
If you’re middle class, you have several good reasons to support UBI. - Most middle-class incomes will be supplemented by UBI. In other words, the tax needed to fund a UBI will be less than the UBI benefit. - The middle class has been shrinking in size as technology displaces workers. The children of middle-class households are finding it harder to find jobs that pay sufficiently well. - Power in the US has been shifting to those with the most resources. A healthy sized middle class is required to guarantee our survival as a democracy benefiting ordinary citizens.
Currently, the US generates over $190,000 in net income per household. As shown in Shares in America, we can easily afford a UBI of $1,000 per adult. See the topic under "About UBI" on the main menu.
UBI will drive economic growth by increasing demand. The rich do not spend as much of their incomes as those with lower incomes. UBI will drive consumer spending which grows the economy.
Shares will cause an increase in demand for consumer goods. This heightened demand could be inflationary until suppliers ramp up their production to meet the new needs. To prevent a sudden increase in inflation, Shares could be phased in gradually. Additionally, offering the option to save a portion of one's Share can help stabilize spending and mitigate inflationary pressures.
No. Your Share will not count as income for benefits calculation or tax purposes. The whole idea is to supplement income, not replace it. Longer term, means tested benefits such as SNAP, housing and fuel assistance should be replaced dollar for dollar by direct cash payments or preferably by a Share sufficently large so that means tested benefits are no longer required.
No. Shares makes no change whatever to our managed capitalist economic system. As I mention in the book , I'm a fan of our capitalist market-driven economy. Shares just shifts income from the wealthy to those with lower incomes.
An increasing share of America’s income goes to the very wealthy, many of whom inherited much of that wealth and the income it generates. We are clearly not all born with equal opportunity, and automation and AI may widen that gap further. Even many wealthy Americans have argued for higher taxes and universal basic income as a fairer system. Unlike traditional welfare programs, Shares treats everyone equally, provides the same benefit to all, and does not punish people for working. This topic is discussed in greater detail in the Shares in America book.
Some authors and economists suggest implementing a value added tax (VAT) to finance UBI. Others favor increasing taxes on the wealthy through higher income taxes. I strongly favor income taxes because they also serve to reduce income and wealth inequality compared to a VAT. Also a national VAT is an entirely new tax whereas we already have an income tax.
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