The “negative income tax” as a steering mechanism: the semantic field of the NIT around Milton Friedman in his pre-monetarist period (1939–1948)

AbstractThis paper explores the intellectual history of Universal Basic Income (UBI), specifically focusing on Milton Friedman’s Negative Income Tax (NIT) as a precursor. Examining Friedman’s work in the 1940s, the study reveals the polysemic nature of early NIT proposals and underscores the significance of Friedman and Stigler’s engagement with concepts like Abba P. Lerner’s Social Dividend and Kenneth Boulding’s adjustable tax plan, the latter often overlooked in the literature. Contrary to the prevailing view of NIT as solely a poverty alleviation policy, this research also positions it, at this moment, as a macroeconomic steering mechanism. Drawing on Reinhart Koselleck’s categories, theoretical analysis emphasises the importance of exploring diverse “layers of meaning” in early NIT debates, shedding light on nuances that echo contemporary discussions on UBI. [ABSTRACT FROM AUTHOR]