The guaranteed national income is just a short duration welfare payment which will increase the national debt in the short duration but all the benefits of the initial stimulus will in the long duration lead to the same problems without a cure.
Yes, initially spending will increase in the nation and businesses both small and large will make greater profits and there will be more investment and expansion in the economy with more jobs and perhaps a slight increase in salaries.
In the long duration prices will increase and cause more inflation reducing the purchasing power of the extra income. In the long duration the purchasing power of the national income will become less and less and investment and jobs will decrease again to levels even lower than those at the outset. Even salaries may not increase but perhaps even decrease when businesses slow down again.
It would be much smarter to make small welfare payments to everyone on a yearly basis and gradually increase the welfare payments to keep pace with inflation so that the purchasing power of the dollar would remain constant and the stimulus to the economy would be constant year after year. Yes, the national debt will continue to increase and the economy will essentially be in a no growth mode again.
In the mean time big business will profit buying up more small businesses and putting them out of business and impacting the employment rate by making it higher.
The guaranteed national income just means that more humans will be on welfare often being non contributing members of society and parasites on the economy. There will be many more humans in poverty and the difference between the rich and poor will just be bigger with a continuing decreasing middle class.
Big business and robotization will put many humans out of work in the near future so you could argue that at least all the unemployed and destitute will be able to survive on a guaranteed national income adjusted to inflation on a yearly basis. Ultimately this may indeed be a compassionate solution in the modern age of little work for the unskilled and non usefully educated population. Since the welfare overhead is 70% for administrative fees for the current system, that money could be used instead to go directly to welfare recipients without the bureaucratic overhead.
My solution to the welfare problem is very different and has some strings attached so that the incentive to work is not totally eliminated. You can read my book CHANGES IN WELFARE LAWS to get an alternate viewpoint.
If you liked this evergreen truth blog then read more of them, about 4300 so far, or read one or more of my evergreen truth books, especially EVERGREEN TRUTH, rays of truth in a human world filled with myths and deceptions.
For a complete readily accessible list of blogs and titles go to twitter.com/uldissprogis.
If you enjoyed this blog then here is a list of my most popular ones which you may also enjoy!!!