Can somebody explain to me how basic income can work in terms of the cycle of spending? If companies have to pay for all of people's income through a taxable percentage of their income, then these companies will only receive a share of that amount back through consumer spending? So the economy will shrink in a vicious cycle, right?
I think it is hard to be confident about what would happen. If most people elected to stop working the economy would probably contract. If instead the impact were to give more people the option of making longer term choices, you might see the economy expand.
If the basic income is set at a basic enough level, work should remain an attractive option.
