World wide money circulation, UBI and why Social Democracy no longer work.
Disclaimer: This is AI generated image and it sort of illustrated my point.
I post world wide money circulation of USD. This circulation work so well because it is a part of more fundamental money circulation which was created after Brenton Wood die and financial sector was unleashed.
Now we look on this fundamental circulation. It included all financial markers and real economy. Why it exist? Real economy does not create money. So in order to function amount of money circulating in it, payed in wages and good and services need to stay constant or even increase with real economy grow. And that mean if excess profits go to financial sector, equal amount has to be borrow by real economy. The same true about interest on existing debt. That why financial capital and debt always grow. Individual can pay of it debt, workers as a class can not, unless by forced redistribution.
Idea of UBI, even old come back to public focus after 2008 crush. Crush happen because real economy no longer was able to service it debt by borrowing more. There was a suggestion of "helicopter money". In 2008 USA was easy able to do that. Instead of QE just create money and give to USA population, this solve problem. Interest would be paid and borrowing will resume. Instead financial sector was bail out by QE.
That is economy idea of UBI, give population money equal as minimum interest it is pay and as maximum interest + excess profit. That will balance economy with out touching financial sector. USA was able to do that when USD circulation was secure. This money will be suck into financial sector and will not effect real economy. Just balance it. Any other country can not do it. Any other country need to tax rich one way or an other in order to finance UBI. Taxing workers would not do the trick, as money need to go to workers in order to balance economy.
And here we come to "why Social Democracy stop working". It is simple, goverment no longer tax rich as it used to. Case study is the last attempt to use Keynesian economy ideas to balance economy by a big country, France under https://en.wikipedia.org/wiki/Fran%C3%A7ois_Mitterrand goverment. It attempt to realize it Socialist plan and tax Capital. Capital declare strike and run to Germany. There was no Capital controls, which existed under Brenton Wood in order to make it work. So, Socialist Keynesian plan was abandoned.
And here I will give recognition to TOP. They identified the only way governments still have power to tax rich - Land Tax. Rich can not take land away, yet. Problem is - It would not be enough. Taxing other wealth may work specifically for NZ in current political situation, as rich may want to continue to stay in NZ. We probably safest place on earth from War, especially Nuclear War. But do not underestimate rich greed, tax need to be small. May be TOP would be able to give UBI equal to amount interest real economy pay and this keep NZ economy stable, but I would not bet on it.