We can analyze the effect of basic income using MMT, modern monetary theory. Every dollar spent by the government is a dollar in someone else's pocket. That do

We can analyze the effect of basic income using MMT, modern monetary theory. Every dollar spent by the government is a dollar in someone else's pocket. That dollar will be split and used in 3 ways: spending, taxation, saving. So here's the algorithm... int saved = 0, taxed = 0; 1) For every cent taxed, add that to "taxed" 2) For every cent saved, add that to "saved" 3) For every cent spent, recurse So, every dollar spent by the government, with the algorithm fully applied, is completely distributed into taxation and savings. And taxation is simply a return back into the government's hands. So the net effect is that some fraction of each dollar spent by the government goes into private savings. You end up with "twin peaks of debt and savings", in this case government debt and private savings. Government spending is essentially monetary policy... and basic income is government spending that is fair and democratic. But government debt doesn't grow forever, because there's income outside of basic income, and that income is taxed as well.