AT Tax Cut CP A UBI is better for the economy than a tax cut for the wealthy the poor are more – likely to stimulate demand. Streithorst, 2015 Evonomics Journalist – [Tom, Basic Income Solves “How Capitalism’s Fundamental Problem”, December 20, 2015, http://evonomics.com/how-universal-basic-income-solves/. June 27, 2017] NJT [Premier] Evonomics, By stimulating the economy and pushing it towards its production The third problem is perhaps the most central. possibilities frontier, Basic Income Guarantee will be growth enhancing, but also the it is undeniable that it will be redistributive. For the past 30 years, we have stimulated the economy The pie will be larger, but it will be sliced differently. by shovelling money towards rich people. A Basic Income Guarantee shovels money towards poor people. And for many in the top 1%, that is anathema.∂ Conservatives generally favour tax cuts as a way of stimulating the economy. this is textbook Keynesianism. As Although they like to admit it, don’t long as the government does not cut spending, more money in will consumers’ pockets inevitably increase demand. Unfortunately, tax cuts generally favour the richest among us, and they, unlike the poor, are liable to save rather than spend their windfall. Stimulating savings is a waste of a tax cut. Today, we have an over-abundance of saving and a shortfall of investment and consumption. A Basic Income Guarantee can be thought of as a tax cut targeted to those most likely to spend it, which is what the economy needs. The Basic Income Guarantee solves the problem of demand, stimulates the economy, increases corporate profits, It is gives workers more freedom, and provides a safety net to the most vulnerable. economically sound and politically savvy. But the very rich fear unemployment, they fear redistribution and they will be the most significant force against the don’t implementation of the Basic Income Guarantee.
AT Tax Cut CP A UBI is better for the economy than a tax cut for the wealthy – the poor are more likely to stimulate demand. Streithorst, 2015 – Evonomics Journalist [Tom, “How Basic Income Solves Capitalism’s Fundamental Problem”, Evonomics, December 20, 2015, http://evonomics.com/how-universal-basic-income-solves/. June 27, 2017] NJT [Premier] The third problem is perhaps the most central. By stimulating the economy and pushing it towards its production possibilities frontier, the Basic Income Guarantee will be growth enhancing, but it is undeniable that it will also be redistributive. The pie will be larger, but it will be sliced differently. For the past 30 years, we have stimulated the economy by shovelling money towards rich people. A Basic Income Guarantee shovels money towards poor people. And for many in the top 1%, that is anathema.∂ Conservatives generally favour tax cuts as a way of stimulating the economy. Although they don’t like to admit it, this is textbook Keynesianism. As long as the government does not cut spending, more money in consumers’ pockets will inevitably increase demand. Unfortunately, tax cuts generally favour the richest among us, and they, unlike the poor, are liable to save rather than spend their windfall. Stimulating savings is a waste of a tax cut. Today, we have an over-abundance of saving and a shortfall of investment and consumption. A Basic Income Guarantee can be thought of as a tax cut targeted to those most likely to spend it, which is what the economy needs. The Basic Income Guarantee solves the problem of demand, stimulates the economy, increases corporate profits, gives workers more freedom, and provides a safety net to the most vulnerable. It is economically sound and politically savvy. But the very rich don’t fear unemployment, they fear redistribution and they will be the most significant force against the implementation of the Basic Income Guarantee.
Premier-Debate-Brief-MA18.docx