Giving every American $12,000 a year in free money could grow the economy by $2.5 trillion, study finds

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A monthly check of $1,000 delivered to every American adult would grow the US economy by roughly $2.5 trillion over eight years, a new study found.

Conducted by the left-leaning Roosevelt Institute, the study investigated three strategies for implementing basic income, a form of wealth distribution that involves giving everyone a standard salary just for being alive.

Proponents of basic income say it would reduce or even eliminate poverty, while skeptics say it could erase people's motivations to keep working, possibly ruining the economy instead of improving it.

The three basic incomes proposed by the study were $1,000 paid monthly to every US adult; $500 paid monthly to every US adult; and $250 paid monthly to every US child. "For all three designs," a summary of the report said, "enacting a UBI and paying for it by increasing the federal debt would grow the economy."

Specifically, the study found that the largest of the three - $12,000 a year doled out to every American adult - would grow the economy by 12.6% to 13.1% over eight years, by which time the policy's effects would start to wane. That would translate to an increase in gross domestic product of $2.5 trillion, according to data from the Congressional Budget Office.

The researchers made some assumptions in the study that could lead to such an optimistic conclusion.

The team's analysis was based on people continuing to work as if they weren't receiving a basic income, something skeptics have taken issue with. Some believe that basic income, while not enough to live off, would disincentivize full-time work.
 

RNG

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I'm aware of multiple programs started to test that system, but each one that I am aware of was terminated early before any kind of firm conclusion could be reached, which in itself makes me wonder.

I can see the theoretical benefit but I'm not sure of real world application.
 
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Hm. Let's try some basic math here.

There are about 250 million adults in the United States.

250 million x $1000 per month = $250 billion. Per Month.

Over the 8 years the study said it would add $2.5 trillion to the economy, the cost would be $24 trillion.

I'm just going to stop right there.
 
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RNG

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Hm. Let's try some basic math here.

There are about 250 million adults in the United States.

250 million x $1000 per month = $250 billion. Per Month.

Over the 8 years the study said it would add $2.5 trillion to the economy, the cost would be $24 trillion.

I'm just going to stop right there.
How much of that would be taxed back?
 
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^ Ok, fair question, let's see.

Cost of the program = $24 trillion over 8 years.

Average American pays 14% of earnings in taxes.

$24 trillion x .14 = 3.36 trillion.

$3.36 trillion + $2.5 trillion (claimed addition to economy) = $5.86 trillion.

Still not very close to the cost of 24 trillion, is it? And the question has to be asked, who would pay for this? This simply cannot be paid for, it's pie-in-the-sky, and along with the other education and medical giveaways, - just to name two, it achieves idle dream of a fantacist status.

Rudimentary math skills can save us from these ruinous giveaways if only people would use a calculator and their brain.

This may shed a light upon why Democrats want everyone dumbed down, and indeed even claim math is racist.
 
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RNG

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^ Ok, fair question, let's see.

Cost of the program = $24 trillion over 8 years.

Average American pays 14% of earnings in taxes.

$24 trillion x .14 = 3.36 trillion.

$3.36 trillion + $2.5 trillion (claimed addition to economy) = $5.86 trillion.

Still not very close to the cost of 24 trillion, is it? And the question has to be asked, who would pay for this? This simply cannot be paid for, it's pie-in-the-sky, and along with the other education and medical giveaways, - just to name two, it achieves idle dream of a fantacist status.

Rudimentary math skills can save us from these ruinous giveaways if only people would use a calculator and their brain.

This may shed a light upon why Democrats want everyone dumbed down, and indeed even claim math is racist.
Simplistic. Odds are the money given to poorer people will be spent so sales taxes will be paid. Plus that leads to better results for stores serving them so more taxes and perhaps they will hire more, increasing more taxes. And the richer recipients will be paying a higher percentage in income tax, plus they too will probably spend more than they otherwise would have. And money is a fuel that an economy runs on.

So your analysis is simplistic to the point of being useless.

And then there are some potential savings in a lower use of various welfare type programs. It requires a fairly sophisticated model to calculate this type of thing.
 
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So your analysis is simplistic to the point of being useless.
Haha. It's completely unaffordable, any 3rd grader would see it. Liberals can't. Then they say you're stupid.

Meanwhile conservative victories sweep the Western World.

Ironic.
 

RNG

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Haha. It's completely unaffordable, any 3rd grader would see it. Liberals can't. Then they say you're stupid.

Meanwhile conservative victories sweep the Western World.

Ironic.
Next you'll tell me you believe in trickle-down.
 
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Next you'll tell me you believe in trickle-down.
You must if you endorse that absurd idea that it'll add revenue to the treasury. I have a better idea. Simply send the people check stubs with the amount they would have received if the congress had their heads from out of their collective asses along with a bill for the money the govt expected from the plan.