Money Supply Funded Universal Basic Income

Money Supply Funded Universal Basic Income

A specific sender-economy / recipient-economy money supply funded Universal Basic Income is suggested as a macro-economic global tool.

It is structured in the following form:
  • A quantitative-easing based increase in money supply in a sender-economy, such as the UK.  This is decoupled from the debt-oriented promise to reduce money supply in the future after local economic expansion.  (This removes the risk of stagnation that is created by the delivery to the market of long-dated economy-expansion-assuming debt instruments).  In effect a 'static' money supply increase.
  • A fixed-term structured delivery of UBI to individuals in a recipient-economy, such as Uganda.  This can be e.g. a ten-year histogram of six equal weighted chunks of money followed by a reduction towards the end of the term.  Such a structure allows weaning-off of a recipient-economy from dependence on the UBI income.  A long-term allows the boost to the recipient-economy that this would produce to by virtuously supported by inbound private-enterprise investment.  With risk of removal of such supply removed.
  • There is no obligation to repay the UBI by the recipient economy.  (Repayment is in fact rejected.)
Impacts of such a scheme include:
  • Zero inflationary pressure on the sender-economy.  As increased money supply is routed external to the local economy.
  • Bottom up growth in the recipient-economy, allowing those needs that are most wanted to be addressed efficiently.
  • Confidence in the recipient-economy, allowing inbound investment.
  • Scalability - futher money-supply UBI injections can occur to the same recipient-economy either from the same sender-economy or from other sender-economies.
  • Testability - money-supply foreign UBI injections can start as small scale experiments.  E.g. £1 billion.
  • UBI framework build-out in recipient economies.  E.g. GiveDirectly.com already have a nascent framework for UBI distribution in several african economies.
SJH / 2018-09-13 (initial version)
stephen.hunt@usa.net
sjh.android.2@gmail.com

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