Universal Basic Income is a controversial and relatively untested idea but is among the options being considered by the Government
My hunch is that they won't go for it, but there's plenty of money in the tax havens, and a massive crash is in no one's interest, including the wealthy.
Boris Johnson said a temporary universal basic income was one of several measures under consideration to help workers left in dire financial situations by the coronavirus crisis.
Universal basic income involves regular fixed payments by the state to everyone in a country with no strings attached, irrespective of their income.
The idea remains controversial among economists and relatively untested outside of pilot programmes in countries such as Finland.
Rishi Sunak, the Chancellor, announced another £350bn in government spending and loan guarantees on Tuesday, focused on keeping businesses afloat through the turmoil.
But the Government is facing growing questions about what it will do to help the self-employed, including gig economy workers, and people laid off as a result of the growing economic crisis....
The Telegraph
17 comments:
If Boris accepts the idea, it shall be done.
I hope he does.
Considering doesn’t cost a thing.
Dawdling may cost lives.
Aggregate supply shrinks because so many people are off work. Government tries to maintain everyone's standard of living (i.e. maintain aggregate demand) by printing loads of money.
I reckon the average ten year old can work out what happens next: inflation goes thru the roof.
Most new money will go to paying rent and mortgages. Inflation will not go thru the roof. It may go up but when production get up to pace it will go down.
The tabloid trash if they have any notion at all where the government is getting the money from to rescue the UK economy from the pandemic recessionary effects believe it must be coming from the rich since government has no money of its own. It's high time the UK stopped being regarded as a functioning democracy!
Inflationary effects from a fiscal injection not automatic:-
https://mythfighter.com/2018/03/17/what-is-the-complex-relationship-among-inflation-deficits-interest-rates-oil-prices-tax-cuts-and-gdp/
Wow Ralph. YOu imagine that you are in closed economy or under a gold standard.
So, your knowledge did not upgrade in last 90 years. Knowing that Austrian economics is valuable only for feudal systems not where rivate banks print money in capitalism, you need to update for last 300 years to figure out things in econ.
Inflation of protective gear is allready here without governments printing money, so your prediction is the same as in 10 year old. Everything else will be imported since you do not live in a closed economy and your money is accepted in China which makes it empire's money. Empires like UK and USA can import anything to substitute domestic production without causin inflation. ANything except oil. someody would think that utsourcing would have tought you that but since you did not update your thinking in last 90 years, nothing can teach you anything but what was in past centuries, not what is today
“Inflation!” is a figure of speech...
Since it involves both supply and demand shocks, both serious deflation and serious inflation are real risks. See Marshall Auerback's What Will the Post-COVID-19 Global Economy Look Like? and Bill Mitchell's The coronavirus will redefine what currency-issuing governments can do – finally, cited by Auerback.
Calgacus
That fraze "currency issuing governments" must be changed because almost all countries , except EU have currency issuing governments but natt all of them have the same capabilities.
The real difference makes the abillity to trade in their own currencies so that imports do not cause inflation or blcokade by foreign banks that lended to foreign indebted countries. Foreign banks can blackmail countries with the help of IMF, domestic banks can not blackmail their own county.
There is about 5 major countries tha can trade in their own currencies and those are "former" empires. Those present empires make it so by trading in their own currencies only. The condition called "reserve currency" is enjoyed by all empires, UK, USA, Japan, Canada and AUS
The condition that is requierd should be named "trade in their own currency" instead of "currency-issuing governments".
Matt
Inflation is a necessity in a debt based economy which is basically a capitalist economy. Inflation makes debt burden reduced and bearable, it is also a debt forgivness over longer time. Wages grow causing inflation while debt is reduced in proportion to wages. So, discretionary income grows even though the purchase power of a wage does not. But discrationary portion growth makes it that purchase power grows. Hence, the inflation (wage push inflation) is a necessity for a capitalist system to function properly, otherwise is no better then any other system. Thats is how China was able to prevent all that debt from collapsing. Banks do not loose nothing in inflation while debtors gain.
"inflation is a necessity" figure of speech
"capitalist" figure of speech
"wage push" figure of speech
"purchase power" figure of speech
"debt collapse" figure of speech
Try to make your point without using any figures of speech probably others Ive missed
Here is TOP regulatory Art Degree economist on planet earth Janet Yellen:
https://gsiexchange.com/fed-admits-dont-fully-understand-inflation/
“We don’t fully understand inflation.” She continues, stating that “the shortfall of inflation this year is more of a mystery.”
to her with the Art Degree its "a mystery!"
Mystery:
https://www.etymonline.com/search?q=mystery
"Non-theological use in English, "a hidden or secret thing; a fact, matter, etc., of which the meaning explanation, or cause is unknown,"
World's top PhD Art Degree economist she doesnt know what it is...
So dont tell me YOU know what it is... you DONT know what it is...
I KNOW what it is, it is a Figure of Speech....
That you Art Degree people think is literal or real...
Matt. You are going bonkers. Sadly
And you cant explain anything without employing figurative language...
"bonkers" figure of speech...
You guys are all technically unqualified and incompetent...
Here you guys say I'm "bonkers" which is a figure of speech which nobody knows what it is..
Here I'll say what you guys are doing with your "inflation!" without resorting to figurative language:
You are making a serious cognitive error TERMED (ie NOT a figure of speech) 'reification' in cognitive SCIENCE
https://psychologydictionary.org/reification/
"To regard an abstraction as something concrete or material; a conversion of abstract concepts into a material or concrete existence. "
This is what you guys are doing because you are not adequately trained in applied abstraction..
You are reifying concepts that are figurative or perhaps abstract...
If you were trained correctly you wouldnt do this...
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