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The Economic Necessity of Basic Income

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  • Crocker, Geoff

Abstract

The delinkage of productivity and real wages is the underlying cause of the 2007 economic crisis. As a result of this delinking, consumer income lagged output GDP, and the gap was funded by consumer credit and increased deficit-financed welfare payments. This proved unsustainable, and so led to current austerity policy and GDP cuts. An alternative paradigm is needed in which the financial sector is re-engineered and financial instruments redefined to serve the real economy. Deficient demand and financial deficit are inevitable in advanced technology economies. The only ultimate solution is a basic income funded by QE in proportion to output GDP and not counted as deficit.

Suggested Citation

  • Crocker, Geoff, 2015. "The Economic Necessity of Basic Income," MPRA Paper 62941, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62941
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    File URL: https://mpra.ub.uni-muenchen.de/62941/1/MPRA_paper_62941.pdf
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    References listed on IDEAS

    as
    1. Blyth, Mark, 2013. "Austerity: The History of a Dangerous Idea," OUP Catalogue, Oxford University Press, number 9780199828302.
    2. repec:ilo:ilowps:478623 is not listed on IDEAS
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    More about this item

    Keywords

    basic citizen income;

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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