howtomakebiinflation-proof.docVIP

How to make BI inflation-proof while also raising wages by Jeffery J. Smith President, Forum on Geonomics Presented at the 2008 US BIG track within the Eastern Economic Association annual conference in Boston at the Park Plaza Hotel, March 7-9 Abstract When an advocate promotes a Basic Income Grant (BIG or BI) to thoughtful people, they inevitably point out that increasing peoples purchasing power could be inflationary. And indeed, they could be right, at least for one sector – housing. In the past, when government gave money to the poor or students or pensioners, then their landlords raised what they charged for tenements, dormitories, and trailer parks. Yet there is a way to put landlords in competition for tenants. Its a way to also raise funds for paying a BI or a CD (Citizens Dividend). That is, where government has taxed land, it has discouraged land speculators and encouraged landowners to keep their improvements affordable. The raised revenue could fund an income supplement, somewhat like what. Aspen CO does. Additionally, where government recovers rent, they keep down price. Since the value of the location is an immense part of the price of real estate, when land costs little, land plus buildings cost much less, so that buyers borrow much less. With less debt in society, there is less debt-backed new notes. With the supply of money in better balance with the output of new goods and services, the means to inflate prices is lacking. Government could swell the BI or CD to a quite comfortable size and still not worry about inflation as long as it recovers rent. Historically, where government taxed land, there wages were higher, since affordable land provided more opportunity to work for oneself, besides more employment opportunity. Plus, if a workers income were augmented by a share of rent, that too would enable workers to negotiate better wages. And if the complete geonomic tax shift were ushered in – tax pollution, not income; tax extraction