Run it, and it will look very similar to what the more complicated model results in.
Almost the entirety of his model's result comes from the fact that the BI is given to everyone, while the basic job is not. All the other parameters he brings up are interesting asides but irrelevant to the actual results of the simulations. His model of the basic jobs proposal is pretty much equivalent to a proposal that "if you're unemployed, you should get a basic income; if you're employed, you shouldn't."
Basic income advocates consciously reject this. I don't have time to finesse the simple model right now to represent why we reject that proposal (I have, well, a job to go to =). But I'll hopefully get to it this evening.
He had several arguments for this. One is, that at the moment in Germany, labor is taxed, so there is an incentive to move production to overseas. A VAT is applied to goods from abroad and from the same country fairly.
The basic income would then be a negative tax refund to compensate for the social problems that a high VAT causes (since poor people suffer under high VAT more than rich people).
So let us say a person spends 1000 EUR on VAT-relevant purchases (food, clothes, phone, etc.). Now a VAT is introduced, so the products now cost 2000 EUR. Then a basic income of 1000 EUR would annihilate the additional burden. Another person spending 2000 EUR a month at the moment would soon have to spend 4000 EUR, 1000 EUR being provided by the basic income, therefore this person would have to spend 3000 EUR (1000 EUR increase) to buy the same goods as before. Because other taxes would be abolished, the income would be higher. Furthermore, with VAT there would be less tax loopholes and tax collection would be a lot easier.
As a _second_ idea, this basic income could be chosen to be above the level necessary to compensate for the VAT. This is the idea which is in generally associated with the basic income and outlined in the model.
I will take a look at the model more closely. I find this approach really interesting.
While talking about basic income we should not forget that he's running one of the largest drugstore chains in Germany. If everyone would have a basic income the difference in income would be going into consuming products. So retail would benefit a lot from it.
On the other hand removing tax on labor would benefit retail too because it's a major cost factor there.
I'm not convinced that we would have better society if we would implement his proposed scheme.
Thank you. I look forward to seeing your alternative model. Please email me if this thread vanishes before you write it up, I really want to see it.