Basic income: a 50-state economic impact analysis

Abstract

Purpose

This paper aims to estimate the economic impact of a basic income for each state in the USA.

Design/methodology/approach

Building on existing pilot studies of basic income in the USA, this paper presumes a $500 per month basic income for individuals earning less than $25,000 in annual income. Using impact analysis for planning (IMPLAN) input–output modeling software, estimated increase in gross state product and employment are provided on a state-by-state basis.

Findings

A $6,000 annual basic income ($500 per month) to adult persons earning less than $25,000 annually results in an increase in gross state product (e.g. gross “regional” product in IMPLAN terminology) ranging from 0.7% (District of Columbia) to 5.7% (Florida). Likewise, this increase in household spending will create demand for employment across these states, resulting in an increase in employment from 0.9% (District of Columbia) to 5.8% (Florida).

Originality/value

To date, to the best of the author’s knowledge, this is the first state-by-state analysis of the economic impact of a basic income provision to lower-income individuals.

Citation

Jolley, G.J. (2022), "Basic income: a 50-state economic impact analysis", Journal of Financial Economic Policy, Vol. 14 No. 6, pp. 768-777. https://doi.org/10.1108/JFEP-04-2022-0090