Economists Note Potential Problems With Universal Basic Income

With Joe Biden about to take office, a coalition of 30 mayors from across the country are once again pushing for direct, recurring payments for their citizens.

It's often referred to as the “universal basic income” or UBI. Democrat Andrew Yang is proposing the idea as part of his campaign for New York Mayor. While it may sound appealing to have guaranteed money even if you don’t work, economists warn there's a host of reasons why it wouldn't be a good idea at the federal level, if at all.

“That would have to be paid for with either debt or inflation. If it was inflation, that could set in motion a domino effect, because you would have rising inflation lifting prices. Over time, that would require a boost in the UBI allowances,” Economist Peter C. Earle, with the American Institute for Economic Research, said.

Earle told KTRH a far better solution to would be to lift lockdowns and restrictions on businesses. Which he says is how Americans got in dire financial straits in the first place.

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