Economy in focus: Experts warn of risks of basic income!

Economy in focus: Experts warn of risks of basic income!

On January 8, 2025, a central point was highlighted in the political debate about economic strategies and social systems: increasing competitiveness and strengthening the economy. Loud Economic service This is a common goal of the FPÖ and ÖVP, with Maik Schneider from the University of Graz emphasizing that additional measures may be necessary to reduce budget deficits to three percent. He mentions possible adjustments to the pension system that a demand from the SPÖ could meet with resistance. In order to realize the increase in tax revenue, tax increases and cuts in government spending are also on the table.

In another aspect of the debate, the concept of an unconditional basic income (UBI) is discussed as a potential solution to income distribution and the associated economic challenges. As in a post by Economic service As stated, the introduction of a UBI could have far-reaching effects on the labor market, wage levels and goods markets. The basic income, which is granted to all citizens without compensation, would replace current social systems and could have both positive and negative effects on the economy, depending on the type of financing.

With regard to financing, different approaches are conceivable, such as an increase in VAT and a possible wealth tax, all of which could have an impact on government finances and the general economic situation. There could be a change in the labor supply, particularly in the low-wage sector, and influence the distribution of income within society, so that issues of social justice and economic stability are closely linked. These considerations play a central role in deciding whether and how the concept of basic income can be implemented in practice.