Doing The Numbers On Universal Basic Income
COLUMN âą View from Fly Creek
Doing The Numbers On
Universal Basic Income
By ADRIAN KUZMINSKI âą Special to www.AllOTSEGO.com
As the economic insecurity of a large segment of the country continues without relief (debts, taxes, low wages, health costs, education costs, etc.), some big new ideas (like the Green New Deal) are getting attention.

In my last column, I examined one of these big new ideas: the proposal for a universal basic income (UBI) put forth by presidential candidate Andrew Yang, who proposes to give every US citizen over 18 years of age $1,000 a month. He calls it the Freedom Dividend.
Yang argues that automation and robotics are relentlessly eliminating wage-labor jobs, hence the need for a UBI. He may be right. I speculated that a UBI might be paid out of corporate profits, but it turns out that thatâs not where the money is.
To see how it can be funded, letâs do some math:
The current adult (18 plus) population of the U.S. is about 250 million people. Giving $12,000/year to each person would cost about $3 trillion. To put that in context, the federal budget is about $4 trillion/year, including $700 billion for the military, while total annual U.S. corporate profit is about $2 trillion/year in an economy of about $21 trillion.
The total net financial assets of American households, according to the Federal Reserve, are much greater than that. They add up to about $70 trillion. What are net financial assets? They include stocks, bonds, funds and other financial instruments. Thatâs where the money is.
The major asset for most Americans is their home. Net financial assets donât include your personal property (your home, vehicles, furnishings, art, etc.); nor the debts you owe.