A team of economists from the left-leaning Roosevelt Institute conclude in a new research study that implementing a guaranteed income of $1,000 a month for all Americans would accelerate U.S. economic growth by an additional 12.56% over eight years if it were financed by increased federal debt.
If universal basic income was financed by an increase in redistributive taxes, it would still grow the U.S. economy 2.62% over 8 years. It would also shrink the federal deficit.
If the same program were financed by increased redistributive taxes, the growth impact would be smaller, producing an additional 2.62% of GDP growth over 8 years. But the federal deficit would also, according to the model, shrink by 1.39%. In both scenarios, unemployment would also decrease. The report concludes that fully funding a $1,000 a month UBI would require tax increases from 21% to 35% for the top 10% of American earners.