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Is a Citizen’s Income Financially Feasible? Part Two: Household Financial Feasibility

In: The Feasibility of Citizen's Income

Author

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  • Malcolm Torry

Abstract

This chapter discusses a second type of financial feasibility: one related to households’ finances rather than to governments’ finances. If at the point of implementation of a Citizen’s Income scheme low-income households were to suffer losses in their disposable incomes, or any households were to suffer significant losses, then the Citizen’s Income scheme would not be financially feasible. With a Citizen’s Income, it would be easier to turn additional earnings into additional disposable income than with means-tested benefits, initial losses would still be a problem. The chapter shows that Citizen’s Income schemes that leave means-tested benefits in place and take Citizen’s Incomes into account when means-tested benefits are calculated can pass this feasibility test, whereas schemes that abolish means-tested benefits struggle to do so.

Suggested Citation

  • Malcolm Torry, 2016. "Is a Citizen’s Income Financially Feasible? Part Two: Household Financial Feasibility," Exploring the Basic Income Guarantee, in: The Feasibility of Citizen's Income, chapter 0, pages 67-86, Palgrave Macmillan.
    • Handle: RePEc:pal:etbchp:978-1-137-53078-3_4
    DOI: 10.1057/978-1-137-53078-3_4
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