A. Modern Monetary Theory and Universal Basic Income
It appears that the lockdown lifestyle doesn’t seem too bad for some folks. Government handouts and various income supports are for the moment temporary band-aids for most Canadians to survive. Groceries are available, big box stores are wide open, most items can be delivered by our “friends” at Amazon and Netflix keeps adding to its mindless content. For many, the extra free time has allowed them to work on projects at home they never thought they would be able to complete. And who is missing the daily commute to work? Why can’t we continue like this after COVID-19? Why work when the government will pay for everything?
Regrettably, the current situation has caused some, including Prime Minister Justin Trudeau, to entertain the idea of Universal Basic Income (UBI) coupled with Modern Monetary Theory (MMT). UBI is a government-funded stipend for all, regardless of one’s economic means. MMT involves the central bank printing unlimited sums of money, to lend to the government to pay for everything including UBI, without new taxes, and ignoring the possibility of default. How wonderful is that? As we know, the majority of the electorate has no hesitation voting for generous gifts when it comes from the public treasury. They want free education, free food, free phones, free transportation, and free drugs. They even want debt forgiveness to cover their past borrowing sins and most of all, they want free money and lots of it. What could possibly go wrong?
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