ECO 355: Public Finance

One expert analyzes the 7-2 U.S.S.C. decision on Medicaid expansion, which stated that the program could continue, but the penalty for states not participating would be removed.

Imagine getting a check from the government every month—$600 or $1,000 guaranteed. It’s happening in Finland and other countries, where pilot programs are being launched to test what is known as a “universal basic income.” Such programs, supporters argue, simplify the social safety net, combat poverty and income inequality, treat all citizens equally, and provide a cushion for workers, giving them latitude to take risks in the job market. But to afford such a program, opponents point out, the government would have to eliminate the rest of the safety net, such as Social Security, food stamps, and housing vouchers. A universal basic income, they argue, would take away the incentive to work, waste money on those who don’t need it, and come at the expense of targeted and effective programs that help the poor. Is the universal basic income the safety net of the future?

The Highway Trust Fund that helps finance road, bridge, mass transit, and other infrastructure projects across the United States is running out of money. Its revenue source, the federal gasoline tax, at 18.4 cents per gallon, has not changed since 1993. Some argue that Congress should raise the gasoline tax to fund infrastructure projects. But others oppose raising the tax, arguing that states should shoulder more of the costs. Should Congress raise the federal gasoline tax?

Behravesh explains how permits work and describes the price point as the best gauge of where the costs and benefits of contamination reduction stabilize.