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Tomoyuki Misumi

Tomoyuki Misumi

  • What is the optimal level of income distribution? This is the critical question in basic income which try to protect minimum level of living standards while avoiding the spoil of competition in market economy. Modern microeconomic theory tells the pareto optimum point of resource allocation, however

    What is the optimal level of income distribution? This is the critical question in basic income which try to protect minimum level of living standards while avoiding the spoil of competition in market economy. Modern microeconomic theory tells the pareto optimum point of resource allocation, however, it doesn't related to the egalitarian. No economist knows the solution for it; only they have “opinion”.

    Correcting income inequality across people’s attributes is highly political matter, and no optimum, theoretical solution for it. However, standardizing the tax burden and refund policy across "generations" seems to be solvable in the context of government fiscal dynamics and lifecycle-projection of households' consumption. We can deal with it as a problem of "permanent income hypothesis": rational people maximize the utility by allocating disposable income and normalizing the consumption level in every stage of lifecycle.

    We should discuss the basic income as a means of restructuring welfare system, achieving efficient government entity and automatically managed,

    predictable fiscal policy, while minimizing discretionary income redistribution. It’s not the utopia as stipulated in this article.