UBI and Economics

 GDP is ultimately people buying goods and services from other people. Somebody has to flip those burgers the basic income recipients are buying. 


 If a person does not work but receives the same UBI as everybody else, no one is a slave for the non-worker but all who work, work for the common good and get paid for it if someone else recognizes the value and buys it. The "buys it" may be in wages or purchase of a chattel or other art that someone has worked to make.  Some people create more recognizable value for the common good than others who are less skilled or less able and are paid more and can consume more. 
 
 But all contribute to the common good by consuming which is a necessary part of the production/consumption equation which ultimately must balance.  The couch potato consumes food, TVs, housing, clothing, etc. that someone had to be paid to make.
 
 Since low income people spend locally and buy from people they know (not robots) the income from outside the local economy stays in the local economy and all are better off.  The multiplier effect of the basic income dollar for a relatively closed local economy without box stores or Franchises to siphon off money is nearly 3 times.  The burger flipper in a local lunchroom is paid a competitive if relatively low wage in addition to the basic income or hesh wouldn't work.  Hesh spends most of herm income including UBI on local goods and services employing other local workers, creating more local demand for those goods and services and more workers to produce and vend them. 

  Assuming UBI, Medicare for All, and essentially free renewable energy, now dead ex-urban and rural suburbs will become vibrant villages of local commerce and art most of which will generate excess funds for local amenities. UBI is an external source of resources for the community which will be subject to the economic multiplier by those providing services to the UBI recipients.  Dispersal would solve the "BMR" housing issue as only those needing to be close to cities would compete for high end suburbs and high density city housing.  Note that minimum wage jobs in high density areas would no longer be attractive to distant UBI recipients.  There are many things they could do with the costs in time and money of a multi-hour commute.

 UBI should be an EFT deposit into a local bank or credit union.  National Banks should not be permitted to accept UBI transfers.  Local banks and credit unions could invest in housing and business loans for residents of the local area.  Large metro areas could be divided into historical and/or ethnic communities for the purpose of defining "Local" for this restriction. 

 The car based infrastructure will once again become a valuable resource for infrequent visits to friends and relatives and occasional visits to urban centers for shopping and entertainment.  The car will remain as the personal status symbol for rich and poor alike.  Although it will be autonomous and electric it will still use the roads and freeways unclogged by commuter traffic.  That racing striped Camaro shell will be on a Spark chassis, but hesh will be as devoted to it as before with the big Hemi.

 Some basic income recipients will use their time to pursue a dream of artisan goods production; a local service like a band, restaurant, or performance venue; or a mercantile service.  Some will succeed and become tourist magnets generating outside dollars for the community.

 Assuming an income tax the multiplier will be reduced a bit from a pure subsistence economy, but if the tax rate is progressive the reduction in the multiplier should be minimal for in-community services as these services will be provided on narrow margins as the providers will be recipients of UBI as well.

J'C 11/26/2019