Democrat Presidential Hopeful Wants to Give Everyone $1,000 a Month Free Money

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Democrat Andrew Yang says that if elected he will give everyone btw 18 and 64 $1,000 a month in universal basic income.

Freedom Dividend

Presidential hopeful Andrew Yang, 43, is running for election on a campaign that centers around the idea of universal basic income, or free cash payments. Specifically, Yang promises that if elected, every American citizen between the ages of 18 and 64 will receive $1,000 a month.

To demonstrate the potential benefit of distributing cash, Yang is personally funding a pilot for cash payments, which he calls the Freedom Dividend.

Jodie Fassi and her family were selected from “dozens of nominations.” Charles Fassi, 49, his wife Jodie, 47, and their daughter Janelle, 20, received their first $1,000 check from Yang at a New Year’s Eve party in New York City. Technically, “the pilot is just for one person, Jodie,” Yang tells CNBC Make It.

Fiscal Lunacy

I have no doubt that $12,000 a year would improve the lives of many. But let's put this to the scale test.

US Population

2017 US Population Range by Age

The above chart from the Census Reporter which also lists the population for 2017 as 325,719,178.

Scaling Test

Andrew Yang's proposal would cost in excess of $2.4 trillion a year.

Yang and countless more free money UBI proponents are economic illiterates.

None of these programs scale. Not a one.

Failed Tests

Without a doubt, you can give $1,000 a month to everyone in some some small town and watch that local economy grow. But that money has top come from somewhere.

Canada tried it one with much ballyhooed success. But everyone in the province had to pony up money for the benefits of residents in one town.

It was not a legitimate test, because it did not scale.

Hooray! Yang is giving Jodie Fassi $1,000 a month. I suggest he give everyone in the city $1,000 a month.

Inflation

Yang does not understand inflation. If the US gave away $2.4 trillion a year, guess what?

Unless you are a dim-witted UBI proponent, you know the answer. $12,000 a year would not go far. And pity those older than 64 who don't get a dime.

UBI is complete nonsense.

Mike "Mish" Shedlock

Comments
No. 1-25
Robert J.
Robert J.

The money just comes out of secret federal government slush funds. You are not allowed to find out where the money comes from. They can tell you what they want. Follow the links. That's why government data is now bogus and why foreign governments are buying less Treasuries. The confidence is eroding around the economic revelations: https://www.zerohedge.com/news/2019-01-18/taibbi-has-government-legalized-secret-defense-spending

Hansa
Hansa

That's nothing. I'LL give everyone ONE MILLION DOLLARS per month (queue the Dr. Evil music). Don't worry about funding it. We'll float some 0% 1,000 year bonds and the Fed will buy em all up.

KidHorn
KidHorn

It would work if the $1,000 was taxed at 100%.

Advancingtime
Advancingtime

Many older people on Social Security get less than this so, HA Ha to them. Also, can we make it $2,000 a month. LOL

El Capitano
El Capitano

This is reaching the level of treason where people are now purposely flushing whats left of the country down the toilet so that they can personally gain by being in office. I wonder how long until the killing of traitors begins? For every action there is a counter action. As Yang plans to give away free money I suspect there are groups that are organizing to put him and those like him down. Mish's answer to everything bad that happens when con men and liars take over is "get out", "run away", "let them have it because they are willing to steal it from you in broad daylight".

Not everyone thinks that running away is the right answer.