THE POOR AND THE WEALTH OF NATIONS.
A recent proposal to provide each adult in Switzerland with an income of $2800 per month with no conditions was of course turned down as a national referendum. Not much of this made news in the United States.
This proposal was for the purpose of reducing the growing gap in incomes that our global economy as been developing over several decades.
It is an idea that is now out there and its implications will probably be under consideration in future economic discussions on growing size of lower income and poverty classes compared with the outrageously growing wealth of the excessively wealthy of the world.
Put aside for the moment how this sum of money would be acquired, what would be its social significance and its affect on the overall economy of nations? First of all, it would immediately eliminate the poverty class. Most of the money that would be spent immediately on a monthly basis and over the long run might forever eliminate recessions. It might at first, of course bring on some inflation which should level out with time.
In nations with progressive income tax, the wealthiest would pay the larger proportion of the direct governmental cost. Those presently, at lowest levels would not pay tax at the lowest tax rates on this stipemd. To be fair as a minimal subsistence income, it should be a tax-free sum for all classes. The richest would pay the highest of the increased income tax to cover the national cost.
These are the earliest of economic considerations that will bring emotional discussion, but we’d also be looking at a different world of economics if each nation were to guarantee a minimum income to all adults. Then “the poor would 'not' always be with us.” So what? How do the poor benefit the “wealth of nations?”