Ralf Einert

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THE WORLD SPIRIT - Part 2:

Studies of Economic Change

Measure 3: Basic income

Description:

Basic income of about 60% of the average wage regardless of income and property for everybody (plus the introduction of minimum wages to avoid wage dumping)

Goals:

1. Abolishing the fear of unemployment and the social descent
2. Social security for the basic needs and reduction of bureaucracy
3. Establishing the same conditions for the markets for labour and goods

Conflicts:

1. Jeopardizes to maintain the achievement principle
2. High expenditures and budget deficit
3. Incentive for wage dumping? Therefore combination with minimum wages

Realisation:

1. Centralisation of all organisations which calculate and pay social benefits
2. Connecting the basic income to the average wage and adjusting the income tax
3. Statistically firm calculation of the annual average income

Problems:

1. Regional differences in purchasing power and income
2. Harmonization within the European Union
3. Financing

Public spending:

Financing by measures 4 to 7 (income tax, basic income replaces retirement tax and unemployment pays, inheritance tax, eco tax, VAT, property tax, capital return tax, Tobin tax, reduction of bureaucracy)