The Roosevelt-Levy model, by contrast, finds that any negative effect due to the deficit would be swamped by the positive economic impacts of increased demand.
The Roosevelt-Levy model also makes two other significant assumptions:
A basic income does not discourage work at all
Households don’t respond to changes in their tax burden
“Our fear that people will quit their jobs en masse if provided with cash for free is false and misguided,”
Harvard economist Stefanie Stantcheva have argued that very high marginal tax rates (the top rate on wages was 91 percent for most of the 1950s) discourage the rich from making very large salaries. In particular, it prevented them from bargaining with their employers to divert money from shareholders or lower-ranked staffers into higher executive compensation.
Study: a universal basic income would grow the economy
https://www.vox.com/policy-and-politics/2017/8/30/16220134/universal-basic-income-roosevelt-institute-economic-growth
The Roosevelt-Levy model, by contrast, finds that any negative effect due to the deficit would be swamped by the positive economic impacts of increased demand.
The Roosevelt-Levy model also makes two other significant assumptions:
“Our fear that people will quit their jobs en masse if provided with cash for free is false and misguided,”
Harvard economist Stefanie Stantcheva have argued that very high marginal tax rates (the top rate on wages was 91 percent for most of the 1950s) discourage the rich from making very large salaries. In particular, it prevented them from bargaining with their employers to divert money from shareholders or lower-ranked staffers into higher executive compensation.
http://rooseveltinstitute.org/modeling-macroeconomic-effects-ubi/