Universal Basic Income UBI, a model giving all citizens of a country or geographical region a guaranteed income regardless of their resources, income and employment status could soon become a Federal policy. 

UBI is currently being tested in over 200 US counties

Poverty rates are skyrocketing in advanced democracies with shoplifting for basic food necessities now unprecedented in the US, UK and Europe. This situation is likely to worsen as the fiat debt-based currency is being debased to a level which could cause social unrest. An army of essential public workers, the working poor are striking because they can’t make ends meet. A young generation now thinks shoplifting for food is socially acceptable, cool and better than going hungry.      

An eight-month boat trip 10,000 miles across the sea to Australia became the punishment for stealing a bag of sugar or a loaf of bread in 18th century Great Britain.   

But in the 21st century, such a punishment is draconian and unacceptable.

Universal Basic Income - UBI
Young generation stealing food

“A young generation now thinks shoplifting for food is socially acceptable, cool and better than going hungry.”

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Is UBI today’s solution to modern-day Charles Dickens’s poverty? 

UBI policy is already being piloted in the US 

Minnesota has just enacted a 100 billion dollar guaranteed UBI program and the results look promising.  

Giving people cash every month has produced interesting results in about 80 cities and counties across the country. Closer to home, St. Paul, Minneapolis, and Otter Tail County have seen the recipients get more jobs, improve their mental health, and have better child development outcomes.

“The participants in our pilots have also used this freedom to invest back in the communities that have invested in them,” said Laura Zabel of Springboard for the Arts, which implemented the Otter Tail County program. “And these are the same results reflected in the data and the research from the pilots that are happening all over the country.”

“The program has exceeded all my expectations,” said Mercedes Yarbrough of St. Paul.

“It gives us individuals hope,” said LeAndra Estis, of St. Paul. “It brings joy and security. And most of all, it has allowed us to believe that our dreams will become reality.”

Cash Is King

“Giving people cash every month has produced interesting results in about 80 cities and counties across the country”

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The entire state of California is asking for UBI

San Antonio touts the success of the Universal basic income pilot programme that sent out $5000 to one thousand families.

In November 2023, California launched its first state-funded guaranteed income pilot programs focused on former foster youth. The pilots gave 150 Ventura County residents $1,000 and 150 San Francisco residents $1,200 monthly. 

“There is so much we don’t know yet,” Amy Castro, director of Penn’s Center for Guaranteed Income Research. “We don’t know how long people need to receive cash to create what level of change.” 

200 cities are currently enacting these policies.

“The chickens rarely venture from their cage, even with the gate open, because they are fed, watered and feel secure from predators” – Wealth Training Company

America’s biggest universal basic mobility experiment is taking place in L.A.

In May of 2023, the Los Angeles Department of Transportation and LA Metro launched the largest Universal Basic Mobility experiment ever attempted in the US, giving 1,000 South Los Angeles residents a “mobility wallet” — a debit card with $150 per month to spend on transportation.

The politics of UBI 

The mobility wallet has a catch. Funds can be for taking the bus, riding the train, renting a shared e-scooter, taking micro-transit, renting a car-share, taking an Uber or Lyft, or even purchasing an e-bike.

But participants of the mobility wallet, a debit card loaded with $150 every month for a year, can’t spend funds on the cost of owning or operating a car.

UBI could be the beginning of programmable money facilitating and enabling enforceable government policy. The risk of UBI programmable money is that the technology could be a super tool for totalitarian governments. 

Paradoxically, the citizenry could vote for their enslavement. Faced with dire poverty or state handouts the electorate will vote for the latter.       

The chickens rarely venture from their cage, even with the gate open, because they are fed, watered and feel secure from predators despite the owners stealing their eggs and their loved ones, occasionally being taken and never seen again.   

UBI will likely be a vote winner because the majority will always vote for the perception of safety, security and comfort over risk, danger and freedom. 

“If you think a 34 trillion dollar public deficit is big today, you ain’t seen anything yet” – Wealth Training Company

UBI Socialism for all

So we have gone from quantitative easing QE socialism for the rich to UBI socialism for the poor. Have we all become socialists?

The almighty and powerful BIG state is bankrolled with central bank money, the new God for all creatures, great and small. But power corrupts, and absolute power corrupts absolutely.  

UBI and M2 to the moon 

If you think a 34 trillion dollar public deficit is big today, you ain’t seen anything yet.

Sure, when cash is abolished, it will be like having the tax authorities watching over your shoulders with every transaction made, which is likely to increase tax revenues as digital cash spotlights the black economy. 

But how much tax revenue is the black economy worth? 

Helicopter money, showering the population with UBI, is bound to increase the M2 money supply, bearing in mind that UBI is likely to be financed with a large public deficit. 

UBI, higher inflation, the inflation trade 

So we know that increasing the money supply, without increasing productivity, the supply of goods and services equals higher inflation. 

You don’t need to be a rocket scientist to figure out that paying people to do nothing rewards idleness and is a disincentive to work to supply goods and services in the economy.   

Moreover, there is chatter that the Fed has given up its 2% inflation mandate target, which I have been writing was a pipe dream.

So cash could be trash, bearing in mind central banks can’t raise rates further without crashing the multi-trillion dollar treasury bond market and collapsing the banks.

In a few words, could the inflation trade be about to see a new influx of capital flows

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