Why an Unconditional Basic Income is Highly Problematic – General Considerations and Quantitative Implications for the Case of Germany

Abstract The concept of an unconditional basic income is not new, but it is still the subject of much controversy. This paper looks at the quantitative effects of introducing an unconditional basic income, using Germany as an example. It examines the financial implications and other major problems of an unconditional livable income measure. The analysis shows that an unconditional basic income at the level generally called for by its proponents would require massive tax increases and thus a substantial redistribution of income from the middle and upper ends of the income scale downward.