Perhaps, this is a test of our future UBI/automation economy? No one's producing anything, but stocks keep going up based on, I assume, consumption from government handouts. Only thing being produced are dollars by the fed. I feel like we're living in an episode of black mirror.. lol
UBI would be funded by taxing production. Depending on the specific details of the implementation, it can certainly be deficit neutral. For example, with the economy from 2014-2019 a 25% tax on personal income would have fully covered it. Absolutely affordable, and a net benefit for most Americans. Now, as automation increases and personal income decreases over the years, we'll need to transition what our tax targets - but the principle remains the same.
This isn't really a test of UBI, as people's spending patterns change depending on confidence and continuity. These are one time payments. What is next month, or next year going to look like?
Moreover, we need to address housing. My plan for UBI includes a "nest egg", payments to everyone under 18 as well. By the time they come of age - they'd be able to partner with someone and straight up pay cash for most homes in this nation. That is a powerful and transformative change to our society, but takes a generation to implement in a deficit neutral way. The more immediate housing solution would be a federal home loan with payments guaranteed through UBI. Wall Street gets giant loans and bailouts while our people get foreclosed on? The status quo is terribly wrong. Together, these two programs can put an end to that.
We can provide home and food security to all Americans, we just have to push for the policy that would get it done.