Universal Basic Income Could Grow the U.S. Economy by 12.5%

A team of economists from the left-leaning Roosevelt Institute conclude in a new research study that implementing a guaranteed income of $1,000 a month for all Americans would accelerate U.S. economic growth by an additional 12.56% over eight years if it were financed by increased federal debt. If the same program were financed by increased redistributive taxes, the growth impact would be smaller, producing an additional 2.62% of GDP growth over 8 years. But the federal deficit would also, according to the model, shrink by 1.39%. In both scenarios, unemployment would also decrease. A universal basic income, or UBI, is a once-fringe policy proposal that has gained increasing public support in the U.S., including from many tech business leaders including Elon Musk and Mark Zuckerberg. In part, the idea is appealing because it would help insulate workers against labor market shocks likely to be produced by innovations like self-driving cars and artificial intelligence.