The Universal Basic Income (UBI)

“There is an urgent need to find new forms of work truly capable of fulfilling our human potential and affirming our dignity. In order to ensure dignified employment, there must be a change in the prevailing economic paradigm, which seeks only to expand companies’ profits.” (Pope Francis)

His Holiness
Pope Francis
Casa Santa Marta
Cittá del Vaticano
CV-00120 ROMA

Vienna, 14.12.2020

Your Holiness, dear Pope Francis!

I followed both of your speeches in front of the General Assembly of the United Nations in 2015 and 2020 with enthusiasm. I am especially grateful for your strong effort to overcome economic injustice in our world. Therefore I want to contribute my share, introduce my model of an Universal Basic Income and dedicate it to you.

The model is quite easy. It introduces a minimum basic income, a maximum net income, and a minimum wage in between. The amount of these incomes can be applied to every country in the world. It depends on the nationwide GDP (Gross Domestic Product) of each country:

The Universal Basic Income:

UBI (Universal Basic Income):
1/4 of GDP (PPP) per capita

Children up to 18:
1/2 UBI

Minimum Net Wage:
2 x UBI

Maximum Net Income:
100 x UBI

For better understanding I calculated this model for my home, the European Union, and for your home, South America:

Monthly UBI in Europe (EU):

Austria: € 935.42

Belgium: € 859.17

Bulgaria: € 180.83

Croatia: € 262.92

Cyprus: € 519.17

Czech Republic: € 430.00

Denmark: € 1,113.13

Estonia: € 440.83

Finland: € 905.83

France: € 751.25

Germany: € 861.25

Greece: € 364.58

Hungary: 306.67

Ireland: € 1,468.13

Italy: € 616.88

Latvia: € 331.88

Lithuania: € 360.63

Luxembourg: € 2,129.17

Malta: € 548.96

Netherlands: € 975.42

Poland: € 286.04

Portugal: € 430.42

Romania: € 238.33

Slovakia: € 359.79

Slovenia: € 478.75

Spain: € 550.83

Sweden: € 962.08

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(Data: GDP European Union 2019)

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Monthly UBI in South America:

Argentina: $ 427.85

Bolivia: $ 155.77

Brazil: $ 336.54

Chile: $ 541.21

Colombia: $ 311.31

Ecuador: $ 244.13

Guyana: $ 177.48

Paraguay: $ 279.06

Peru: $ 296.33

Suriname: $ 324.69

Uruguay: $ 484.88

Venezuela: $ 153.01

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(Data: IMF South America 2018)

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Let’s take our two home countries as an example:

In your home country, Argentina, the Basic Income is $ 427.85 per month. So, for children, beginning with conception, it is $ 213.92 per month.

In my home country, Austria, the Basic Income is € 935.42 per month. So, for children, beginning with conception, it is € 476.71 per month.

The minimum wage in Argentina is $ 855.70 per month. The minimum wage in Austria is € 1,870.84 per month.

The maximum net income in Argentina is $ 42,785.00 per month. Every amount above this will be taxed. The maximum net income in Austria is € 93,542.00 per month. Every amount above this will be taxed.

I would suggest, we pay every income in the Americas in USD ($), every income in Europe and Africa in EUR (€), and every income in Asia in CNY (Chinese Yuan Renminbi). Australia and Oceania can choose which currency they want.

We could start as soon as possible, at best in January 2022. The Vatican could start to pay its priests and employees like this even before.

So what do you think?

Deal?

All the best from Vienna to Rome

Peter

P.S.: As you saw, I took the official data of the EU GDPs of 2019, but the official data of the IMF for the South American GDPs from 2018 (except Venezuela). So the South American incomes (except Venezuela) should already be a bit higher…

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See also: The Global Tax Model (GTM)

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