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UBI in Times of Crisis: The Net Basic Income Discussing the Case of Germany

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  • Neumärker Bernhard

    (Freiburg Institute for Basic Income Studies [FRIBIS] & Götz Werner Chair of Economic Policy & Constitutional Theory [GWP], University of Freiburg, Germany)

  • Blum Bianca

    (GWP, University of Freiburg, Germany)

  • Yalcin Burhan
  • Yalcin Sema

    (GWP, University of Freiburg, Germany)

Abstract

The measures taken to contain the Covid-19 pandemic have resulted in, among other things, massive loss of earnings. Many people are therefore increasingly experiencing an income crisis in addition to the acute health crisis. Permanent existential insecurity remains for too many despite the numerous aid packages. The principle of need-based assistance and the determination of need for the provision of aid are proving to be insufficient. In the current crisis, earned incomes are affected most of all due to the measures taken. This leads to an asymmetric distribution of the crisis-induced burdens and thus to an asymmetric distribution of risks and burdens between performance-related and non-performance-related income, which exacerbates the redistribution in favor of capital income. The model of net basic income (NBI) shows one way to come to a solution of these problems in the crisis. Every adult person in Germany receives a monthly unconditional basic income of e.g. 550 Euros (calculated in this approach) during the crisis period. This amount is supplemented by the suspension of rent, lease, repayment and interest obligations during this period of income loss. The amount of money paid to each person is the net share of the crisis basic income. The household savings from suspending rent, lease, principal, and interest payments is the gross. After the crisis, the NBI can be raised to a full participatory UBI as economic momentum increases. In step with this, rental, lease and capital services are to be paid again in full contract amount.

Suggested Citation

  • Neumärker Bernhard & Blum Bianca & Yalcin Burhan & Yalcin Sema, 2021. "UBI in Times of Crisis: The Net Basic Income Discussing the Case of Germany," Journal for Markets and Ethics, Sciendo, vol. 9(1), pages 15-36, June.
    • Handle: RePEc:vrs:jmaeth:v:9:y:2021:i:1:p:15-36:n:3
    DOI: 10.2478/jome-2021-0002
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    References listed on IDEAS

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    1. Alexander Spermann, 2019. "Basisgeld plus Steuergutschriften statt Hartz IV [Basic Money Plus Tax Credits Instead of Hartz IV]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 99(3), pages 181-188, March.
    2. Ugo Gentilini & Margaret Grosh & Jamele Rigolini & Ruslan Yemtsov, 2020. "Exploring Universal Basic Income," World Bank Publications - Books, The World Bank Group, number 32677.
    3. Andrew F. Johnson & Katherine J. Roberto, 2020. "The COVID‐19 pandemic: Time for a universal basic income?," Public Administration & Development, Blackwell Publishing, vol. 40(4), pages 232-235, October.
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