Slashdot Mirror

What would be the macroeconomic effects of UBI and JG?

UBI is inflationary: you are handing out money, and it would have to be a lot, without getting anything back.

A Job Guarantee on the other hand acts as an inflation anchor. Because it is a buffer stock of employed people it damps oscillations in the business cycle.

Note that the JG is an idea that has been developed over 20 years by economists. The UBI has a 100 year history but economists tend not to like it too much.

You can find a recent paper on the JG here which answers a lot of FAQs.

Investment would still be profitable, so people would still invest. Studies back this up..
          http://www.fas.org/sgp/crs/mis...
          http://www.levyinstitute.org/p...

Even Reagan thought that capital gains shouldn't be below income tax.

No discussion of modern money can proceed without referencing the following people? Marriner Eccles http://mikenormaneconomics.blo... Beardsley Ruml http://www.constitution.org/ta... Abba Lerner http://en.wikipedia.org/wiki/F... William Vickrey http://www.columbia.edu/dlc/wp... Wynne Godley http://www.levyinstitute.org/s... Warren Mosler http://moslereconomics.com/man... Randy Wray http://www.levyinstitute.org/p... Bill Mitchell http://bilbo.economicoutlook.n... and CH Douglas, already referenced in another comment

No discussion of modern money can proceed without referencing the following people? Marriner Eccles http://mikenormaneconomics.blo... Beardsley Ruml http://www.constitution.org/ta... Abba Lerner http://en.wikipedia.org/wiki/F... William Vickrey http://www.columbia.edu/dlc/wp... Wynne Godley http://www.levyinstitute.org/s... Warren Mosler http://moslereconomics.com/man... Randy Wray http://www.levyinstitute.org/p... Bill Mitchell http://bilbo.economicoutlook.n... and CH Douglas, already referenced in another comment

http://www.levyinstitute.org/pubs/wp_698.pdf

... The bottom 50% of the population? Around 10% of the total wealth.

Actually the bottom 60% of the population own 2.3% of the nations wealth according to a working paper by Edward Wolff.

Seems to be using a bit of a different metric there, not sure if it is more or less accurate, but it's certainly not congruent with the claim that the majority of the country's wealth was with the income earners under 250,000K.

... The bottom 50% of the population? Around 10% of the total wealth.

Actually the bottom 60% of the population own 2.3% of the nations wealth according to a working paper by Edward Wolff.