What is Universal Income and how does it work?
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I think a more interesting question is: how does universal income benefit an economy overall?
The foundational principle is many people are stuck in poverty loops. Either generational poverty, institutional poverty, or many other types of poverty.
There are many people who are given opportunities from their family to complete school and attend post-secondary without a burden on themselves.
There are other people who would achieve more with the same opportunity however they are trapped in poverty. Perhaps some tragedy befalls their family which requires them to not finish high school, miss out on college or have to send their income to support other members of their family rather than improving their own lives.
These are the people who are the target of universal income. By alleviating each person of the necessity to provide themselves with poverty level support, adult children do not have to support their parents up to the level of poverty, nor do they need to support themselves up to the level of poverty. They are free to work and save and attend post-secondary education and improve their market value.
As more and more people improve their market value the size of the economy will grow, leading to more opportunities and more tax revenue.
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