Boston Basic Income #143: Capital Consumption Theory
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How can we allocate resources most effectively for the benefit of the people? The answer to this question changes depending on whether or not we're in a world with basic income. When we expect consumers to receive all of their income either as workers or as owners of capital, economic inefficiency and instability may be impossible to avoid.
Eddie Chu has developed a framework called "capital consumption theory" that attempts to explain some of the inherent flaws in an economy without basic income. He divides people into two categories: capitalists and workers. These two roles will always exist in the production process, but can basic income disconnect them from the consumption process?
For reading, we have a Medium post by Eddie that he wrote last year at the beginning of the Covid crisis entitled, "How to Prevent a Great Depression — A Capital-Consumption Theory View"
https://medium.com/@eddiechu888/how-to-prevent-a-great-depression-a-capital-consumption-cycle-view-c58a4d401a70
Previous related Boston Basic Income topics have included:
BBI #88: Recessions
https://youtu.be/uc_nbNz2mYI
BBI #125: Labor Demand
https://anchor.fm/bostonbasicincome/episodes/125--Labor-Demand-elpgad
BBI #129: Workers vs Consumers
https://anchor.fm/bostonbasicincome/episodes/129--Workers-vs-Consumers-en0fri
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