Posted: Dec 07, 2015 12:46 am
Question is how it is being financed. There must be some mechanism for the state to gain the money it is distributing. This will likely be based on income tax. The effect of that is that for the average citizen net income does not change, so there will be no heightened inflation as a consequence, so no higher prices.
What would then be the advantage? People with no or low income might have a little higher net income. There is less bureaucracy dealing with financial support for people with no or low income. It would also make taking small jobs (employed or as freelancers) more attractive to people with currently no income because in the current system starting to earn money means loosing some of the financial benefits you currently gain.
What would then be the advantage? People with no or low income might have a little higher net income. There is less bureaucracy dealing with financial support for people with no or low income. It would also make taking small jobs (employed or as freelancers) more attractive to people with currently no income because in the current system starting to earn money means loosing some of the financial benefits you currently gain.