How New Economic Models Can Improve Public Policy

How New Economic Models Can Improve Public Policy

Last summer, the Roosevelt Institute released a study on the economic impact of a universal basic income program that would give all U.S. adults an unconditional cash grant every month to cover basic expenses. Using a Keynesian model, the left-leaning think tank said such a giveaway would boost the economy in part because lower-income households would spend what they received. For example, it found that if all adults received $6,000 a year in grants, it would boost GDP by about 7% in the program’s eighth year, if financed by borrowing rather than raising taxes.

“When we did this exact same […]

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