1/29/2024 0 Comments Financial transaction tax ubi![]() ![]() The velocity of money will increase (the amount of times money changes hands will grow significantly). UBI can bring back the equilibrium by increasing focus on basic goods in the economy through increasing demand for basic goods. The speculative market is a static market where most of the world’s money is. Piek argues that speculative inflation since 2008 has led to economic equilibrium between the speculative market and common goods. Macro Economist Josien Piek adds more insight into this discussion. money supply, and the results were not enough inflation, as defined by the Fed’. For example as Scott Santens explains, ‘the Fed’s quantitative easing added over four trillion new dollars to the U.S. It is important to note that even when the money supply is vastly expanded, the effects on prices need not to be extreme. Different ways of funding will create different effects - some will create inflation and some will not. It is important to remember that UBI should not be implemented on its own - we need tax changes, changes to our welfare system, controls on the housing market and greater investment in our health system and communities. But it is very unlikely a UBI would ever be funded without redistribution. ![]() ![]() There is a higher chance of inflation if it is only based on central money creation. If we fund a UBI through redistribution of the money we already have in the system, it will very likely not cause inflation. (How can we pay for a UBI event by UBI Lab Leeds) More information on how we can pay for a UBI: There is also the idea of a Sovereign Wealth Fund to pay for a UBI (see for information below). Other mechanisms to fund a UBI include transaction and land taxes. These include progressive taxation, where the higher your earnings the more of your UBI you pay back in tax closing some of the tax loopholes (there are estimated to be over 1,000) that disproportionately benefit the wealthiest in society a tax on high levels of pollution a carbon tax and dividend or by creating a sovereign wealth fund and paying out the dividends to British citizens as a UBI, which is how Alaska have funded their UBI since 1982. Raising taxes on high earners, carbon taxes, financial transaction taxes and land taxes are other possible funding mechanisms.Ī number of progressive and sensible funding options have been put forward by experts. The net cost will be significantly less because of the saving a UBI creates. UBI will save on homelessness, crime, mental health, food banks, etc in the long term. When thinking about how much a UBI will cost, we should analyse the gross vs net cost. ![]()
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