In this way at least the chasm between the richest and the poorest will always

In this way at least the chasm between the richest

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equalities, at least in relative terms. In this way, at least the chasm between the richest and the poorest will always remain constant. The proposal for a fixed ratio between the lowest and the highest income can also be applied at the microeconomic level . It is already the case in enterprises such as the Spanish Mondragon cooperative, where a more just relationship has been developed among its employees by paying a maximum and minimum income with a differential of no more than six times . From an environmental perspective, there are positive side effects of a maximum income, which somehow could compensate the potential draw- backs associated with basic income . A ceiling on income might provoke less incentive to work and pro- duce in abundance, which would clearly reduce envi- ronmental pressure. It is true that a maximum income has been criticised for not offering the adequate incen - tives for innovation, but in the present environmental crisis, resource conservation should be prioritised over economic innovation. Moreover, since a maximum income would affect the top 1 to 5% of the richest, it is likely that the majority of economic activities that would be hampered would be in the real estate industry or the financial sector. In fact, fewer innovations coming from these sectors might even be desirable. Desirable innovations, such as in energy-saving technologies or sustainable prac- tices, tend to emerge from small enterprises with an economic turnover well below the maximum income threshold, which means that it is likely that maximum income policies will not affect them. How - ever, an in-depth scrutiny of the economic sectors and the innovations that might be affected by a maximum income is recommended. The present arguments are only working hypotheses that need to be backed up by further research and some quantitative analysis. The applicability of a maximum income should also be ensured at the European level to avoid investment being displaced to neighbouring countries. Thus, the possi- bility of European tax harmonisation is a main issue for analysis, as is the effect of tax evasion and the political choice to control big tax evaders . Therefore, a credible political alternative to facing cor- ruption and tax evasion is needed at the European level. “The advantage of basic income is its easy applicability and current political desirability, whereas a job guarantee requires an efficient administrative apparatus (...) On the other hand, a job guarantee could be a stabilising factor for the economy while the social effects of a basic income seem less certain.”
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A wealth of possibilities: Alternatives to growth 17 2. Basic and maximum income and job garantee Areas for further research Since basic income has yet to be applied extensively, a lot of research still needs to be done. It might be worth following closely the experiments currently planned in Finland and the Netherlands. On the other hand, simulations are required on different ways to fi- nance basic income. Unless a clear way to finance it
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  • Summer '20
  • Dr joseph
  • Economics, European Parliament, Kallis

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