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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]^^ Yang's plan really has the right incentives:

1. Only for US citizens. It encourages legal immigration towards obtaining citizenship.

2. If you are in jail, you are not eligible. It encourages good behavior and reduces crime.

3. No marriage penalty. Married couple gets $2000.

4. No income limits. It encourages work as opposed to some welfare programs having strict income limit and reporting requirements.

5. Though kids are not eligible, once they turn 18, they will have their own money. It encourages financial literacy.

6. Poor people with no access to bank accounts will finally have their own.[/quote]

Where does the money come from?

$12000 per year for every US citizen.

And how do we prove US citizenship?  Can see lots of fraud/ID theft occurring.[/quote]

We have a $20 trillion economy. The UBI will "cost" about 12%, 2.4 T. Money doesn't disappear. They recycle in the economy. In Yang's economy, 12% of total spending will be citizens' freedom dividend spending. He "pays" for this by a 10% of value added tax (VAT), and the overlap of existing government spending. Most countries have a VAT. With VAT, big tech companies like Amazon and Facebook have no way of avoiding being taxed. Right now they pay next to zero in taxes.

Our state department does a good job of issuing passports. Validating citizenships will not be that hard.[/quote]

Why do this though? Won’t a $1,000 a month paycheck just increase consumer spending?  Is that really what our environment needs? [/quote]

And, also, won't it just lead to the cost of goods/services increasing? [/quote]

Over time, like any other inflationary action like tax cuts or interest rate cuts that ncreases demand.

The difference is that UBI does a much better job of increasing demand on the lower end of the income scale.  Right now our economy is highly stratified and purchasinggpower is way skewed.  This has led to massive distortions and has dissuaded economic investment on goods/products that target the lower ends of the income range.  Because of this existing distortion products that target the lower bound are comparatively overpriced and under competitive.  Moreover the way low income benefits are administered tends to force people to make smaller short term purchases which are more expensive on a per unit basis.  In addition, the lack of bank accounts also prevents this same group from utilizing the internet tonpurchase goods.  This, somewhat paradoxically, UBI has the potential to actually decrease costs for those on the lower bound by increasing purchasing power and opportunity while increasing demad/competition for lower cost goods.[/quote]

If there is inflation pressure, it will finally force the central bank to increase the interest rate. The current low rate environment only helps the wealthy and big businesses. The bump in interest rate will help seniors and middle class who don't play in the equity market.[/quote]

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