No.

  1. Basic Income is not extra money, but money that will be paid instead of other welfare payments and instead of having personal tax allowances.
  2. Basic Income does not have to be any more redistributive than existing welfare schemes.
  3. Even if a specific Basic Income does give more money to the poor than they get now and even if they do save less than the rich, this does not mean there will be any increase in aggregrate demand.

I think your confusion may arise from you not having thought carefully enough about what it means when people ‘save’ money. I suspect you are working under the assumption that when people save money, that money is not spent. But this is not true. For example: Someone ‘saves’ money in a bank account. The money is not being spent by them at the moment, but it can still be lent out and spent by someone else.

I understand it can be difficult for non-economists, such as yourself, to get your head around these issues. But that’s why we have economists — to do all the working out for you.

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Tech Fan, Philosopher, Economist and Basic Income advocate. tiny.cc/RJMedStuff

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