Wednesday, August 14, 2024

UBI and targeted stimulus

“Some of us think holding on makes us strong, but sometimes it is letting go.”
— Hermann Hesse ||

Hi everyone! I hope you’re all doing well!

Below I dive into the slippery slope of government giveaways, from the theoretical to the real-world example of Thailand. It’s a long one today, but since I’m out for the rest of the week, I figured you wouldn’t mind. 😁

I have SUCH a backlog of things to dive into – the wrapped BTC moves, new experiments with tokenized deposits, some data on crypto use, and so much more. A lot going on, all of it so interesting. And because I like to step back and think about things rather than merely report, well, sometimes I get to stuff later than I would like. But I do get there, and I like to think that the bigger picture perspective makes this newsletter different.

If you find Crypto is Macro Now useful or informative, would you mind sharing it with your friends and colleagues, and maybe encouraging them to subscribe? ❤ I’d really appreciate it! 

Programming note: This newsletter will miss publication tomorrow (national holiday here in Spain) and Friday (another short summer break), but I will publish the free weekly on Saturday.

IN THIS NEWSLETTER:

• No “free lunch”

• Thailand’s airdrop

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WHAT I’M WATCHING

No “free lunch”

In light of encroaching digitization, creeping censorship and a looming employment crisis, it’s time to look down the slippery slope of Universal Basic Income (UBI). The idea is that the state distributes money, essentially paying people for being citizens.

The supposed benefits are a happier society and a boost in economic activity, because that money will of course be spent on what makes the recipients better off. The assumption is that much of the “free” money will be invested in education, parenting, better health and/or the stock market, with the resulting economic gains improving overall productivity while delivering additional tax revenue to the state.

This is especially relevant as all democracies are terrified of rampant unemployment, because unhappy and hungry people tend to vote for the opposition, whatever their platform. It is also becoming more urgent given the threat to jobs from new technologies such as artificial intelligence (AI).

The idea is appealing. Who wouldn’t want “free” money? Only, just how “free” is it?