The Czech Republic is one of the Eastern European economies that, despite its socialist past, is catching up economically with Western Europe. However, in addition to the increase in social welfare and overall national income, this process is naturally associated with a form of income and wealth inequality which is perfectly natural in modern market economies.
Can money distribution really motivate people to find a job? It doesn’t seem like it. But this depends on the level of basic income. If it is high, people might lose the incentive to look for an employment. However, the financial side of the Finnish experiment is not a tricky one.
The conclusion is that if we stopped providing the benefits for the richer part of the society and only the poorer families were entitled to them, public expenditures could decrease by EUR 270 million a year.