Recently, some commentators have been promoting the idea of a government guaranteed income, where the government would pay a monthly cash payment to every American, regardless of need or merit.
A similar idea, the negative income tax, has been discussed by economists for decades. In Switzerland, voters will soon consider a referendum that would require the Swiss government to pay every adult citizen $2800 per month.
Although it sounds appealing, a government guaranteed income is a bad idea, and its defenders rely on fallacious economic arguments to support it. Read More»