Did Trump Just Create The Worlds First Universal Basic Income?

Did Trump Just Create The Worlds First Universal Basic Income?

Many have long called for a Universal Basic Income (UBI) while many interpret it as some form of ongoing wage, it is actually at it's core a regular payment made to citizens by the government to every person regardless of income, employment or status. Some do see it as a form of income ongoingly and want it to serve the purpose of a liveable wage.

We're not going to debate what the merits of it are or what it should be but rather discuss the points if Donald Trump is actually implementing one with he's latest announcements related to possible dividends paid out to American's from the income created from the tariffs that have been rolled out.

For background, the Tariffs that Trump has rolled out have USD 215 Billion in revenue and Trump has been raising the possibility of paying out Dividends to Americans.

What is the Tariff income being used for?

The tariffs were first introduced to pay down the nations debt as it was alleged that previous governments spent a lot more than America could afford and sent the nation into a high period of [Inflation}(https://leofinance.io/@leoglossary/leoglossary-inflation) lowering the value of the US Dollar (USD), which is problematic for the world as it also serves as the worlds reserve currency.

So when the USD falls flat and loses it's value the repercussions globally are quite significant as it brings down many other nation's wealth and buying power. Or it can also cause other nations to see an increase in their currency to the united states dollar increasing their buying capacity and having them ramp up productions and overconsume. While moving into a "stockpiling" phase to resell or profit off once the USD regains it's strength.

It doesn't sound to bad, until you understand that there is a finite amount of resources and mass production ability without having to heavily invest in scaling up production which then in turn increases costs of production etc. We could spend all day talking about it but today's post is about if Trump has developed the first UBI?

Is it a UBI?

Don't get your hopes up here's why A UBI is supposed to be applied to ALL citizens by Government much like welfare but the cheques being considered for distribution but will require congress support. Will only be going out to 79 Million U.S Households. More specifically, Those who paid income tax.

According to the stats above around 40% of Americans pay $0 income tax and therefore would not be eligible so on those grounds this does not meet the threshold for a UBI. Many have been asking when the cheques will roll out and American's are reminded that DOGE cuts and savings aren't scheduled to be completed until July 2026 which are going to also be included in the savings schemes of government.

So don't get your hopes up on a UBI anytime soon as the government remains committed to working people.

image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using INLEO



0
0
0.000
0 comments