The Proposal

The proposal. In it's simplest terms, it is a universal income of 20k per year distributed to every adult citizen of the US. Now I know the immediate reaction, how could this possibly be paid for and how can the budget be balanced and national debt be paid off by doing it?

Roughly half of the national budget of about $4 Trillion is used on programs that aid in one way or another. Housing, student financial aid, food, healthcare, social security, etc. When you take the money and divide it by the adult population you realize that already there is enough for every adult US citizen to have a check for about $10k every year. To me this shows some of that blatant inefficiency, because those who do receive benefits do not receive $10k worth of benefits per year. So that is already $10k per year.

So what I propose, end the aid programs. No more food stamps, social security, student financial aid, housing assistance, etc. Get rid of every one of them, and you've already got 1/2 of the $20k per year per adult covered. Another good benefit from that, minimum wage will also no longer be necessary. People will no longer need to make enough to survive, they're getting that from the $20k per year so minimum wage no longer is required.

So where does the other half come from? Create a flat tax on all income that isn't that $20k per year. Say around 30%. Now if everyone in the US now has $20k per year, there is going to be a lot more money in circulation. More spending, meaning more profit made by companies meaning that 30% flat tax on all income is going to pay quite a bit back into the system. Not to mention that every homeless person will now be able to afford a home, every person living in poverty will now be able to afford at least a somewhat comfortable life.

Now some might argue, why would people bother going to work? Do you think the person making $40k per year is going to just quit because they get $20k per year? $20k per year is plenty to live on for the basics, but people are still going to want to buy things. They are still going to want the newest car, the latest gadgets, the trendiest shoes, what have you. People are still going to work.

What is going to make the corporations pay more than $1 an hour or something? Why would people want to work if their pay is cut to next to nothing? Well, until everything is automated companies will still need employees, still need to pay them enough to make them willing to do the work. There will be an adjustment period, but the right will finally have what it wants with a market determined wage rather than a government enforced minimum.

This also prepares us for automation, because when the majority of jobs are automated our current system would leave most of the country living off social welfare. With this system in place, when the majority of jobs become automated people will still have money to spend so the economy will continue to function.

There are also other benefits. A person would be more likely to take the risk and start their own business if they had the universal income to fall back on. There would likely be an increase in small business startups, an increase in service industry jobs and independent businesses, arts would thrive as people would both have money to buy 'pretty' things and also have the security to dedicate more time to pursuing the arts.

Now one thing that could also be beneficial. Right now if you own property, you pay taxes on that property. You pay taxes on your home, taxes on your car. Well, when the very wealthy have millions or even billions in accounts not in circulation, why should that hoard not be taxed like any other property? My grandfathers $150k home has to be taxed every year for him to keep it but some guy with his name on the building can hoard 500 million and not pay any tax on it? This would make these corporations and these extremely wealthy individuals more likely to want to keep their assets in circulation, to invest in expanding business and research and whatnot.

This is just the rough outline so far and will be improved on over time. Please feel free to discuss in the comments.