In most European countries, the unemployed receive a minimal benefit to cover their basic needs, while the state strives—through offices and agencies—to facilitate job search. In our country, on the other hand, like other countries particularly affected by the employment crisis, this type of welfare has only recently begun to be seriously discussed, thanks to some left-wing or activist political forces. Despite the evident discontent among large segments of the population, many still oppose this type of measure, citing its uselessness for growth, its financial unsustainability, its negative impact on the desire to work, or even the immorality of non-work-related income .
The social consequences of minimum income
First, this would significantly redistribute income , transferring resources to the less well-off, thus combating growing poverty. Second, it would help raise wages —which are excessively low in our country—which should be significantly above the subsistence income. The indirect consequence of this would therefore be increased consumption, with a consequent positive effect on economic recovery.
The only objections, therefore, would remain the economic unsustainability (only initial, because economic growth would lead to a decrease in the number of beneficiaries and to an increase in tax revenue) and the impossibility of controlling a possible increase in undeclared work (black work).
A new form of minimum income
But let's look at a recent proposal designed to make this measure more effective and less costly. It's about the tax credit card , a tool that would allow monthly income to be paid not in cash, but in vouchers (similar to US food stamps but redeemable for various goods and services). The vouchers spent would generate a tax credit, refundable to the merchant/service provider upon tax payment. The transaction would therefore be directly between the service/seller and the government and would consist of a tax relief equal to the price of the product/service. This would mean a deferral of the actual disbursement of income—the government would pay a few months later, upon collection of taxes for a previously purchased good or service. In post-Keynesian economics, this gives rise to an income multiplier , as if the circulation of current money were much greater than that actually printed. The income multiplier has a very strong effect in stimulating economic growth, resulting in increased employment, GDP, and tax revenue.
The discussion on this must be broad, the political judgment obviously always personal.
Barbara GV Lattanzi
