UBI 101: The Challenge With Paying Through The Government
(Edited)
What often gets overlooked in the UBI discussion is the fact that it is a system that will go through the government. Thus, it will end up on the balance sheet as debt.
In this video I discuss how this is a problem for the long term prospects of economies plus how it stifles humanity.
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I think I have to look into part one of this video. The universal basic income is one aspect of finance that I am hearing about for the first time.
Also kudos to your clear explanation on the demerit of the UBI and feel that the main issue about it is with the government in charge.
The government will always manipulate finance for their own personal gain and using the UBI as a means of getting into more debt to enrich a few pockets while creating wealth inequality.
Also, I want to commend you for this video as I get To know more about the UBI and I also have a suggestion that you should always attach links to older videos that serve as a continuation to your new posts for eàsier assimilation.
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Summary:
In this video, Task discusses the concept of Universal Basic Income (UBI) in relation to central banks, government money, government spending, and debt. He points out the challenges countries face in affording UBI due to increasing national debts. Task emphasizes the role of government in money production, the impact of UBI on government debt, and the issue of servicing this debt. He contrasts UBI with traditional government stimulus methods, highlighting the potential advantages and disadvantages of each approach. Task cautions that traditional funding mechanisms for UBI may not be sustainable in the long run due to the burden it places on servicing debt.
Detailed Article:
Task delves into the topic of UBI, exploring its implications on government finances, debt, and economic stability. He begins by highlighting the common concern about how countries can afford UBI, especially considering the escalating national debts globally. Task points out the unique advantage the United States has due to the US dollar's status as a reserve currency, allowing for more flexibility in monetary policies.
He emphasizes the intricacies of money production by governments, where the issuance of bonds generates funds for government expenditures. However, Task notes that implementing UBI would further strain government debt as more money needs to be circulated to sustain the economy, especially in a deflationary environment.
Task contrasts UBI with traditional government stimulus methods facilitated through central banks. He explains the current system of expanding the money supply through commercial banks or asset purchases, highlighting how this can exacerbate income and wealth inequalities. Task argues that bypassing the banking system to provide direct stimulus through UBI could potentially mitigate these inequalities by putting money directly into people's hands.
The discussion shifts to the issue of servicing government debt, where Task stresses that the real concern is not the total debt amount but the burden of interest payments. He warns that as more money is allocated to service debt, it detracts from economic growth and innovation, ultimately leading to a deflationary cycle. Task illustrates how rising debt-servicing costs can diminish the portion of money available for productive economic activities, posing a significant challenge to sustained economic progress.
Task concludes by suggesting that the traditional government mechanisms of funding UBI may not be viable in the long term. He hints at delving into alternative UBI funding methods in future videos, underscoring the complexity of balancing economic stability with social welfare initiatives. Ultimately, Task cautions against relying solely on conventional debt-fueled approaches for implementing UBI, advocating for a more sustainable and innovative financial framework.