Counterproductive and immensely high cost - Volker Wieland on the unconditional basic income (Hessenschau)

How sensible is the unconditional basic income? In the "Hessenschau" (from 6:10 min), Volker Wieland explained why he considers the introduction of subsistence-securing transfer payments on a large scale to be counterproductive. What could have a motivating effect in individual cases with selected test persons in a pilot project or as a scholarship, achieves a completely different effect as a general right for all citizens, Wieland said.

"On the one hand, the unconditional basic income evokes behavioral changes; on the other hand, the costs are immense," said Wieland, referring to a study by RWI - Leibniz Institute for Economic Research. According to model calculations by RWI, an unconditional basic income of 1,000 euros for each adult and 500 euros per child would involve a massive tax increase to a tax rate of 66 percent. Wieland also warned against heavier taxation of particularly wealthy individuals. "In doing so, you trigger a flight of capital abroad." In addition, he said, assets have already been taxed when they are created.

In the conversation in the issue "Hessenschau-Kompakt", Wieland (from 6:00 min) also emphasized the costs for the state associated with an unconditional basic income. "And the state finances itself through taxes." Therefore, he said, such transfer payments for the state can only be met with tax increases - either immediately or in the future.

Hessenschau-Kompakt vom 26.05.2023 (ab 6:00 min)

Hessenschau (19:30 Uhr) vom 26.05.2023 (ab 6:10 min)

Study by RWI - Leibniz Institute on the unconditional basic income