‘Universal basic income’ has largely been in the public dialogue, to counter the negative consequences of automation – or some other reasons for mass unemployment. In such a context, it is proposed as a last resort if there is an extreme decline in Labour demand. It can however, be used as an alternative to basic unemployment benefits, or to simply combat poverty. I will try to address both.
Keynesian Economics, suggests that spending drives consumption of goods and services. This increase in consumption results in an increased requirement for labour, and thus an increase in employment.
So the answer really depends […]
Full Post at economics.stackexchange.com