Economy of the Union

Universal  Base Income + Incentivization:

All citizens of the Union receive a basic per-person subsistence allowance (in electronic funds) that provides adequate economic support to survive without concern for essential human needs. This program is funded through the Joint Allowance Coffers established and maintained by ongoing Cartel support to the Governance Expense Fund.

In addition to this primary income, Union citizens are allowed to earn through any legal means, whatever additional income they may up to 1,000% of their UBI income without affecting their eligibility for base support.

Employers are encouraged to negotiate a reasonable incentive salary for employees and must realize that not offering adequate compensation for work to an individual who does not NEED to work, will result in not having employees very quickly.

Cartels are required to pay compensation to all employed members of their cartel above the 1,000% threshold so that it eliminates the possibility of all cartels subsidizing the workforce of any one cartel. However cartel members are not required to be employed by the cartel in which they have membership.

Currency

Credit:

Credits are the official currency unit (often called “chit” because of the electronic transfer mechanism) All major business operations (Cartels and other large employers) pay for everything using electronic currency that is recorded through a large central exchange system and accessed through paytag devices (chits) of various configurations. Most employees receive incentive salary through this system.

Credit/chit can be used to pay for almost anything a person needs, as most vendors can access the central exchange system from anywhere in the Union.

Papercred:

Printed currency exists and is commonly used for small financial transactions between individuals. Printed on thin flexible plastic sheets this currency is commonly called papercred (as a holdover to the old earth practice of printing on paper). Papercred can be deposited into the central bank as it is an official currency, although many of the individuals that use it often do not trust that access to their account is going to always remain stable. As a result hoarding is common.

Some small businesses consider papercred as more valuable since using it does not track transactions through the central bank. However papercred does fluctuate value with respect to the more tightly controlled  electronic cred.

At one time the Union Government tried to remove papercred from circulation and the resistance to the plan was so great that the economy nearly stalled entirely. Now the central bank buys and sells papercred to control its “concourse value” and occasionally will release large amounts back into circulation to keep it in close parity with the electronic form.

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