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A comment on The Libertarian Case for a Basic Income. Parent comment

Re:The Libertarian Case for a Basic Income by dragonwriter on Thursday December 05, 2013 @02:49PM (#6856701)
> We can't make these conclusions until we precisely know how people will spend the money. It could go into paying off debt and savings.

Its not like marginal propensity to consume of people in different income levels is a completely opaque mystery about which we have no information.

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Re:The Libertarian Case for a Basic Income by jganetsk on Thursday December 05, 2013 @04:15PM (#6857295)
But there are many other factors other than people's propensity to consume that you need to account for. And I'm not sure if this degree of raise in income practically changes marginal propensity to consume that much.
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Re:The Libertarian Case for a Basic Income by dragonwriter on Thursday December 05, 2013 @05:54PM (#6858005)
> But there are many other factors other than people's propensity to consume that you need to account for.

Not to determine short-term demand effects of redistribution of income there isn't.

> And I'm not sure if this degree of raise in income practically changes marginal propensity to consume that much.

Probably not, but since marginal propensity to consume is the amount of the next dollar of income that will go to consumption, that means that the consumption effects are fairly straightforward if you have an idea of marginal propensity to consume.

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