Emergent Phenomena Analysis of Basic Income on a Money-Circulation Macroeconomic System in Which Labor Motivation and Demand Provide Feedback to the Price and Output of Goods

Basic income (BI) policies are being explored through empirical experiments, theoretical studies, and simulations. However, some see potential issues with financial feasibility and a reduction in labor force participation as a result of implementing BI policies. To date, there has been a lack of BI research that specifically examines the interactions that arise from shifts in work motivation and individual decision-making in response to changes in the productive capacity of society as a whole. Therefore, this study uses agent-based modeling to analyze the impact of BI interactions on a system that encompasses a complete financial cycle in which output and prices are fed back to changes in labor willingness and market demand. The results indicate that while BI brings equitable consumption to a larger number of households, it also has the effect of stagnating economic activities such as capital investment. Furthermore, the results infer the existence of an optimal point at which a society would be better off with a lower rather than a higher level of BI benefits, although such a society would be better off overall if BI benefits were provided