Is Helicopter Money Univeral Basic Income (UBI)?
I know that Wikipedia is not the best source of information in the world, but I will be using it for ease and speed.
Helicopter money is a proposed unconventional monetary policy, sometimes suggested as an alternative to quantitative easing (QE) when the economy is in a liquidity trap (when interest rates near zero and the economy remains in recession). Although the original idea of helicopter money describes central banks making payments directly to individuals, economists have used the term 'helicopter money' to refer to a wide range of different policy ideas, including the 'permanent' monetization of budget deficits... This has also been called a citizens' dividend or a distribution of future seigniorage.
That giant of liberal economics - Milton Friedman - first coined the term helicoper money in 1969, to explain inflation, and "in November 2002, Ben Bernanke, then Federal Reserve Board governor, and later chairman suggested that helicopter money could always be used to prevent deflation."
Basic income, also called universal basic income (UBI), citizen's income, citizen's basic income, basic income guarantee, basic living stipend, guaranteed annual income, or universal demogrant, is a governmental public program for a periodic payment delivered to all on an individual basis without means test or work requirement. The incomes would be:
Unconditional: A basic income would vary with age, but with no other conditions. Everyone of the same age would receive the same basic income, whatever their gender, employment status, family structure, contribution to society, housing costs, or anything else.
Automatic: Someone's basic income would be automatically paid weekly or monthly into a bank account or similar.
Non-withdrawable: Basic incomes would not be means-tested. Whether someone's earnings increase, decrease, or stay the same, their basic income will not change.
Individual: Basic incomes would be paid on an individual basis and not on the basis of a couple or household.
As a right: Every legal resident would receive a basic income, subject to a minimum period of legal residency and continuing residency for most of the year.
The idea traces it's origins to the 16th century, and became popular again in the United States during the Yang2020 presidental campaign.
On the surface it appears that UBI and HMoney have a lot of in common, but it is NOT nessicarily 1. Universal, 2. Automaic (repeated), 3. Non-withdrawable, 4. Individual, or 5. a right.
Helicopter Money, may be a disbursal to businesses or individuals, or both - but it is likely always to be means tested.
Dropping Helicopter Money is an intentional act of monetary management. It is not "a set it and forget it" kind of policy.
Helicopter Money is likely to be means tested. The less extreme the need, the more likely.
Buisness OR Individual
In an extreme case individual Helicopter Money is very likely, but if trying to affect smaller segments of the economy and not the entire Conusmer Price Index (CPI) dispursment to business is more likely.
Not a Right
Like Medicare and Social Security, Helicopter Money is a privilage and not a right. If legislation is passed to make the former a right, it will not likely be extended to the latter.
UBI and Public Banking
Yang's proposal for a UBI was predicated on the addition of a new Value Added Tax (VAT).
I think that paying Citizens Dividends from a Public Bank is a better mechanism for the creation of a UBI.
I will add comments to the webpage later.
For now, join the conversation on Facebook.