In its basic form, universal basic income means “everyone gets a paycheck, whether they have a job or not.”
Many expect even more. They want a guaranteed “living wage”.
Such schemes cannot possibly work. But that does not stop fools from trying.
For example, Finland is giving out a guaranteed monthly income of nearly $600 to 2,000 citizens.
Canada’s province of Ontario, which includes Toronto, started a pilot program in April that provides 4,000 citizens with an unconditional income of about $12,600 a year. Applicants must be between ages 18 and 64 and living on a limited income.
Those studies cannot prove anything, no matter what the results.
Free Money Proposals Do Not Scale
Sure, one can do a trial and show that 20,000 or whatever sample size is better off.
However, any benefit to the trial participants must at the expense of a bigger deficit or higher taxes on everyone else.
Imagine giving 200 million people a guaranteed living wage. Who is going to pay for it?
Next, imagine all of Europe doing this coupled with freedom of movement.
Why stop there? Imagine the same program for the entire world? Free money for everyone!
Mike “Mish” Shedlock