Quote:
Originally Posted by Locke
Have you seen the cost of UBI?
Free money and free Health Care?
You cant have both.
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UBI isn’t that expensive if you go back into the last thread ion UBI we hashed out the cost. Essentially if Canada cut CPP, OAS,EI, Child benefits, lost taxation due to rrsp’s and TFSAs and spent the same % of GDP publicly as Sweden we could afford it.
This assumes that we don’t destroy the tax base because professionals decide to retire at 40. I’m much more concerned about that problem then the current economy being able to support a UBI.
2k per month would be about 720 billion or about 1/3rd of GDP, but since you are just transferring this money it really should have limited economic drag and in fact taking money from the wealthy and giving to consumers probably works like stimulus.
I think the whole thing blows up because a 60%-75% marginal tax rate for the top bracket along with 40k a per year retirement fund would lead many to work a lot less years. Once you have a house paid off you’d retire.
The other problem is that you are going to increase competition for housing by increasing the number of people who can afford X house. So unless you significantly increase the qualifying requirements for mortgages might of this UBI money just gets eaten up in asset inflation.