The Financial Freedom Act is brought to you by the Foundation for a Better Economy

ENGINEERING ECONOMIC VITALITY FOR ALL

© 2019 The Foundation for a Better Economy, Boulder, CO

HOW BASIC INCOME WORKS

Basic Income is a Tool to Grow the Economy

Whereas welfare discourages people from working, basic income plus earned income credits produce jobs and encourage work

Our nation's prosperity depends upon:

1) our ability to produce what we need, and 2) our ability to buy what we produce.

Because of the times we live in, our ability to produce more is not a problem. The problem is keeping up our ability to buy with our ability to produce.

The amount that consumer demand can be increased without causing inflation depends on latent capacity  within factories, and how fast production can be ramped up.

If GDP is $21 trillion, and our factories can produce 25% more than they do now, an extra $5 trillion in the hands of consumers will not be inflationary.

Basic income is a stimulus designed to increase consumer demand to match our productive capacity so the economy can reach its full potential.