Why we should all have a basic income
World Economic Forum

As soon as you include the concept that such a program has to be “paid for” or otherwise justified on a balance sheet you doom it to failure. Firstly, all citizens are rightful owners of the resources that fuel capitalism, but our system has denied most the benefits of such ownership, deeming that they must earn their right to exist via labor performed for someone else’s benefit, or become the beneficiary of society’s charitable instincts. That’s feudalism, not capitalism.

Secondly, the best you can hope for is breaking even if you must capture the expense of such distribution back from the very economy you are trying to incentivize. Economics in a system with a sovereign currency, where debt is denominated in that same currency, is simply addition and subtraction. The issuer of the currency can not go broke because the currency supply is infinite. This must be tempered with caution so as to not drive inflationary pressure too high, but there is no need to “pay for” everything, especially when such presents a net loss to the economy. Government debt represents private reserves and balance may be the worst possible case.

The GDP can not grow if the issuer of the currency doesn’t incur debt. In the days of the gold standard, where most of our economic theory is still rooted, this would require increasing the gold supply or devaluing the currency. Since leaving the gold standard we are not so constrained, except in our minds. There is no need for the continual battle that results when government tries to redistribute the currency instead of simply issuing it. Taxation is not even required unless one simply wishes to avoid sequestration of the currency, and even that would be better accomplished in other ways than taxation with its inherent conflicts of fairness. All currency exchanges are now digital, so a monetary unit with an expiration date would more efficiently accomplish avoidance of hoarding.

Once we recognize that the primary “job” of a citizen in the economy is consumer of goods and services, not provider of labor, we can correctly apply a basic minimum income that is actually much larger than whatever number we might arrive at by calculating what is required to keep body and soul together in basic necessities. We can also eliminate the economic drain of taxation that works against our purposes, but only if we begin electing people to government office that are capable of understanding and managing our modern economy.

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