UBI Impact Simulator

Model the economic feasibility of Universal Basic Income. Adjust monthly payments and funding sources to see if you can balance the budget.

Select Currency

Program Design

Monthly Payment Per Person $1,000

Slider represents USD equivalent purchasing power.

Target Population

Funding Mechanisms

Value Added Tax (VAT) 10%

A consumption tax on goods and services.

Carbon Tax (per ton) $50

Welfare Overlap (Savings) 30%

% of current welfare recipients who opt for UBI instead.

Wealth Tax (Top 0.1%) 2%

Fiscal Impact (Annual)

Total Cost

$3.1T

New Revenue Raised

$1.5T

Net Budget Balance

-$1.6T

Poverty Rate

Inflation Risk

Buying Power

Wealth Gap

Can We Afford Universal Basic Income?

Universal Basic Income (UBI) is an economic model where every citizen receives a set amount of money regularly from the government, regardless of their income or employment status. While proponents argue it eliminates poverty and buffers against AI-driven job loss, critics argue the price tag is astronomically high. This simulator lets you do the math.

1. The Cost of the Program

The calculation is deceptively simple: Population × Monthly Payment × 12. However, small changes in the monthly amount create massive swings in the total cost. Providing $1,000/month to every US adult costs roughly $3.1 Trillion annually—nearly 50% of the entire existing federal budget.

2. Funding Mechanisms: Where does the money come from?

To pay for UBI without printing money (which causes hyperinflation), governments must raise revenue or cut spending elsewhere:

VAT (Value Added Tax): A tax on consumption. Since wealthy people consume more, they pay more. It is a reliable revenue stream used by most developed nations.
Carbon Tax: Charging companies for emissions. This raises money while discouraging pollution.
Welfare Overlap: Many UBI proposals suggest that citizens must choose between UBI and existing benefits (like food stamps or housing assistance). If people switch to UBI, the government saves the administrative and payout costs of the old programs.

3. Economic Impact Indicators

The dashboard creates a rough forecast of economic health based on your inputs. If you print money (run a massive deficit), Inflation Risk spikes. If the payment is high enough, the Poverty Rate plummets. The goal is to find the "Goldilocks Zone": a payment high enough to help people, funded by taxes efficient enough to prevent a debt crisis.