Spain announces guaranteed free money: What's really going on?

Spain is about to implement Universal Basic Income. But's let's put the correct label on what's happening.

Universal Basic Income

Please note Spanish Government Aims to Roll Out Basic Income

The Spanish government is working to roll out a universal basic income as soon as possible, as part of a battery of actions aimed at countering the impact of the coronavirus pandemic, according to Economy Minister Nadia Calvino.

Social Security Minister Jose Luis Escriva is coordinating the project and plans to put some sort of basic income “in place as soon as possible,” with the main focus on assisting families, Calvino, who also serves as deputy prime minister, said in an interview Sunday night with Spanish broadcaster La Sexta.

But the government’s broader ambition is that basic income becomes an instrument “that stays forever, that becomes a structural instrument, a permanent instrument,” she said.

Honest Thieves

At least the Spanish government is honest about its redistribution thievery.

They do not all pretend that it's temporary.

Honest Theft™ is the best one can hope for these days.

Guaranteed Free Money™

Rather than labeling this Universal Basic Income (UBI), I propose Guaranteed Free Money™ (GFM)

The money is not really free, however. Government will tax the hell out of everyone then return a portion to everyone.

Of course, some people will put in way more than they get back.

So this is really a redistribution scheme that robs the middle class and upper classes then redistributes the money to everyone to make it appear like a "universal" benefit.

Then again, the MMT crowd will propose this really is "free money", that taxes don't have to be collected, and we can all live in a fairy tale economy of Guaranteed Free Stuff™ (GFS).

Guaranteed Free Stuff™

1. Guaranteed Free Money
2. Guaranteed Free Healthcare
3. Guaranteed Jobs
4. Guaranteed Standard of Living

In case you are wondering "What can possibly go wrong?" please look at Venezuela, Cuba, or Zimbabwe for some extremely likely answers.

Meanwhile, I have a suggestion: Buy Gold.

For discussion where and how, please see No WSJ, Gold is Not the New Unobtanium: Where to Buy?

Also see Gold's New Breakout is Very Bullish: Here's Why

Mike "Mish" Shedlock