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Yes, but the point of UBI is not boosting V, it's just a side-effect. The point of UBI is change in structure of production. Also, regarding savings, according to standard theory, savings are indeed equal to investment. But I think it is wrong, because in the real world, there is a difference in reversible and irreversible actions. So I consider investment/consumption to be only irreversible actions on the world (for example, building a factory), while savings are reversible actions (buying a gold brick from someone). In the real world, it makes sense to postpone irreversible actions if possible (you can always react to others), and so investments and savings are not the same thing! In fact, this happens in deflationary crisis, people hold money (that is, postpone irreversible decisions, and by above definition, save) in expectation that the money will gain more value. And they are effectively deadlocked, waiting for each other to make move and make irreversible decision. This is bad for economy, because economic production requires people to make irreversible decisions (to invest and consume), and so giving everybody some amount of money (especially to people who have no option than to spend, in the form of UBI) can break these deadlocks. |