Give your opinion about which one of the following social safety net proposals you would favor and why.

1. A means-tested transfer: Pay 1000 dollars per month to those with zero income. Phase out the transfer: Lower the amount of the transfer by 20% of the income made. That is for any positive income transfers will be 12000-0.2*income (with this scheme transfers will becomes zero at $60,000). Finance this by a progressive income tax: The government taxes 20% of all income above $60,000.
2. Universal basic income: A transfer of $1000 per month to everyone. Finance it by a 20% flat tax on all income.

Watch: Would a "Wealth Tax" Help Combat Inequality? A Debate with Saez, Summers, and Mankiw (1:21:35)

Answer the following questions based on the video:

1. Summarize points made by Summers against the usefulness of the wealth tax.
2. Summarize the argument Mankiw makes about Sam Spendthrift and Frank Frugal.
3. What is the remark Mankiw makes about the two social safety nets proposed earlier?