Macroeconomic Observations on Paying for and Funding Universal Basic Income

Author:

Sawyer Malcolm1

Affiliation:

1. Economics Division , 4468 University of Leeds , Leeds , West Yorkshire , UK

Abstract

Abstract The paper undertakes macroeconomic analysis of Universal Basic Income (UBI). It focuses on issues of paying for and the funding of universal basic income. A number of proposals are examined and the limitations of borrowing and money creation for the funding of UBI are indicated. It is generally argued that funding of UBI should be examined in terms of funding through taxation. The effects of UBI on employment and national output and the macroeconomic limits on the scale on UBI in terms of work force participation and tax rates are investigated.

Publisher

Walter de Gruyter GmbH

Reference11 articles.

1. Barnes, P. 2014. With Liberty and Dividends for All: How to Save Our Middle Class when Jobs Don’t Pay Enough. San Francisco: Berrett-Koehler Publishers.

2. Coppola, F. 2019. The Case for People’s Quantitative Easing. Cambridge: Polity Press.

3. Crocker, G. 2020a. Basic Income and Sovereign Money – The Alternative to Economic Crisis and Austerity Policy. Basingstoke: Palgrave Pivot.

4. Crocker, G. 2020b. “Inequality and the Case for UBI Funded by Sovereign Money.” In The Inequality Crisis, edited by E. Fullbrook, and J. Morgan. Bristol: World Economic Association.

5. Fontana, G., and M. Sawyer. 2016. “Full Reserve Banking: More ‘Cranks’ Than ‘Brave Heretics’.” Cambridge Journal of Economics 40 (5): 1333–50. https://doi.org/10.1093/cje/bew016.

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