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UK: Launch of Research Project on the Economics of Basic Income

Picture Credit to: University of Bath

The Institute for Policy Research (IPR), based at the University of Bath, launched a research project on the economics of Basic Income (BI).

The project will “examine the economics of Basic Income, including the interaction between technology, output GDP, consumer income and expenditure.” The project has been set up with the collaboration of Geoff Crocker from Basic Income Forum.

The research will look at the fitness of BI as an element for the management of macroeconomic demand. Through the use of empirical economic data, the research will test the hypothesis that in highly technological economies the increase in productivity causes wages to fall (a phenomenon that together with falling employment rates is known as the great decoupling), requiring the introduction of a source of income disjoined from work: Basic Income.

The research project will also compare the effectiveness of BI in combating the unemployment and poverty traps with other forms of unearned income, and consider its effectiveness in avoiding economic crisis, that is, its stabilizing effect, in comparison with consumer credit and household debt.

The study will also investigate whether public sector deficit is an inescapable reality in high technology economies, and if there is potential for using debt free fiat money as a replacement for it and as a source of funding for BI, an idea already proposed by Crocker.

More information at:

University of Bath website: “The Economics of Basic Income”

André Coelho, “New Link: Basic Income Forum”, Basic Income News, July 12th, 2018

André Coelho, “VIDEO: The economics of basic income (by Geoff Crocker)”, Basic Income News, April 26th, 2018

About Daniele Fabbri

Daniele Fabbri has written 22 articles.

The views expressed in this Op-Ed piece are solely those of the author and do not necessarily represent the view of Basic Income News or BIEN. BIEN and Basic Income News do not endorse any particular policy, but Basic Income News welcomes discussion from all points of view in its Op-Ed section.

One comment

  • kyunkyun

    I am Japanese.
    I am reading and writing by machine translation.

    I think that Mr. Geoff Crocker’s proposal is not “full basic income”.
    His proposal seems to be “partial basic income” with a small amount.
    According to his calculations its amount of money is about 55 billion pounds (or 44.8 billion pounds) in 2007 in UK, about 1,000 pounds per person per year.

    Please refer to the following papers and articles.

    Why Austerity is the Wrong Answer to Debt: A Call for a New Paradigm (docx)
    from USBIG Discussion Papers

    Opinion: revisit economic theory before cutting the real economy
    (Also refer to Mr. Geoff Crocker’s comment “£55bn” in the comment section)

    Opinion: The Conflicts of Economic Policy
    (Also refer to Mr. Geoff Crocker’s comment “£55bn” and “£1,000 per person per year” in the comment section)

    Mr. Geoff Crocker wrote in the comment section as follows.

    “John Dunn suggests a citizen’s income of £3,200 but I calculate that in 2007, a per capita income of £1,000 only was needed to replace the £55bn of extra consumer credit taken out to plug the gap between consumer income and GDP output.”

    Opinion: So what’s really wrong with the economy?
    (In this article, Citizen’s Income is calculated as “£44.8bn” in 2007)

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