Sometimes supporters of a basic income guarantee (BIG) argue for the policy on the grounds that it would increase “incentives to work”. This conclusion follows from standard neoclassical labor-supply analysis. Irrespective of the correctness or otherwise of the argument – and, if correct, it probably does have some utility as a negator of frequent neoliberal claims to the contrary – it is important to keep in mind obvious limitations of the argument and to go well beyond it. Two limitations, in particular, spring to mind.heteconomist
Supporting a Basic Income Guarantee on Incentive Grounds
Peter Cooper
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