Basic Income as Economic Security

by coinewzealand

Most national economies are indirectly affected by factors beyond control, such as dependence on natural resources (which may or may not be present in said nation in significant quantities), foreign industries, and foreign consumer demand. Whenever a significant economic crisis or vulnerability affects one nation, it can ripple through the region and world at large. Many key and strategic domestic industries may be closed down due to being unprofitable.

That is why a basic income is another level of economic security. It allows an economy to compensate for the lack of external demand, to focus on internal and local demand. “National resource” countries (such as Saudi oil or Australian minerals) depend upon manufacturing countries (such as China) to buy their goods. But if the larger manufacturing economies have no one to export to, the resource economies can slow down. A basic income means that the unemployment that results instead can become another level of security. Instead of turning to crime or radicalism, the newly unemployed could try building entirely new industries.