A UBI would cause skyrocketing spending, increasing taxes and devastating the economy
Hughes, 2023 - Founder of Bull Oak Capital, an investment advisory firm [Ryan, Jan 27, “Universal Basic Income is a Bad Idea” https://bulloakcapital.com/blog/universal-basic-income-is-a-bad-idea/ Acc 3/23/23 TA]
COST OF UBI UBI is expensive. Very expensive. As an add on, without simultaneously trimming government programs, it would require a significant tax increase. Following the Finnish study results, Kari Hamalainen, chief researcher at the VATT Institute for Economic Research, said implementing a universal basic income for all citizens “would be expensive. If we had a universal basic income, we’d have to incorporate taxation”, and based on these results, “it would be unsustainable.” Bridgewater Associates conducted a study in 2018, which found the cost of a $1,000/mo stipend to every adult in the U.S. would run approximately $3.81 trillion per year. This amount represented 21% of US GDP or 78% of tax revenue in 2018. (Source: CNBC) Yes, the stipend would help to make people feel more financially secure, but as the Finnish study proved, it would not meaningfully increase employment or production. It would merely be an enormous expense, one that would likely cripple the U.S. economy.