Basic Income: Unintended Consequences
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Basic Income: Unintended Consequences
1–10 of 63 posts
Re: Basic Income: Unintended Consequences
#2I think this is an exceptionally stupid idea and I think part of basic income should be stipulation that it can't be used to get loans ie. make this illegal.
Because first thing financial industry would use it against the poor, get them lump sum and eliminate benefits of basic income.
I am sure this can be made in a way that wouldn't be limiting too much, yet prevent obvious abuses you are bringing.
Re: Basic Income: Unintended Consequences
#3I think this is an exceptionally stupid idea and I think part of basic income should be stipulation that it can't be used to get loans ie. make this illegal. Because first thing financial industry would use it against the poor, get them lump sum and eliminate benefits of basic income. I am sure this can be made in a way that wouldn't be limiting too much, yet prevent obvious abuses you are bringing.
To clarify, I am considering this idea not good, not reflective of OP.
Re: Basic Income: Unintended Consequences
#4Would basic income still register in the collective mindset as “help”? Because if it registers as “free money” I fear prices will go up. I understand that since BI correlates with income tax no inflation should be created. Yet people have particular ways to understand how welfare happens. In a poor community, when you know for sure that everyone there can afford some stuff, wouldn’t that be an incentive to collectively raise prices, just because you know there is definitely new money to be spent.
Re: Basic Income: Unintended Consequences
#5I think this is an exceptionally stupid idea and I think part of basic income should be stipulation that it can't be used to get loans ie. make this illegal. Because first thing financial industry would use it against the poor, get them lump sum and eliminate benefits of basic income. I am sure this can be made in a way that wouldn't be limiting too much, yet prevent obvious abuses you are bringing.
The problem of course is that BI's main benefit is to reduce regulatory burden, which is supposed to reduce bureaucratic overhead- now you're suggesting a new regulatory burden of policing issuing of predatory loans against BI holders.
Re: Basic Income: Unintended Consequences
#6I think this is an exceptionally stupid idea and I think part of basic income should be stipulation that it can't be used to get loans ie. make this illegal. Because first thing financial industry would use it against the poor, get them lump sum and eliminate benefits of basic income. I am sure this can be made in a way that wouldn't be limiting too much, yet prevent obvious abuses you are bringing.
The problem of course is that BI's main benefit is to reduce regulatory burden, which is supposed to reduce bureaucratic overhead- now you're suggesting a new regulatory burden of policing issuing of predatory loans against BI holders.
No regulatory burden necessary. Basic income not subject to credit defaults. Done and done.
Re: Basic Income: Unintended Consequences
#7The main unintended consequence is that nobody is going to want to be a grocery store clerk for minimum wage if they get BI. Hence, salaries for menial jobs will go through the roof... All of a sudden a gallon of milk will have to cost $20 to pay grocery store salaries... Now salaries will need to go even higher so that employees can afford food, themselves... And now you've got hyperinflation.
Re: Basic Income: Unintended Consequences
#8I think this is an exceptionally stupid idea and I think part of basic income should be stipulation that it can't be used to get loans ie. make this illegal. Because first thing financial industry would use it against the poor, get them lump sum and eliminate benefits of basic income. I am sure this can be made in a way that wouldn't be limiting too much, yet prevent obvious abuses you are bringing.
Protect it from attachments and it can't be used to secure loans.
Re: Basic Income: Unintended Consequences
#9The whole point of these unintended consequences are easily corrected by allowing penalty free (for the basic income at least) defaults. Just like the student loan issue would be solved overnight by allowing defaults, basic incomes would never have a problem in the first place with them.
Re: Basic Income: Unintended Consequences
#10I feel like there would be a number of arbitrage opportunities that would become available as well, though it's late and I can't think of any off of the top of my head. How it affects the currency exchange markets would be interesting as well. IMHO, a better option would be to provide Tax credits to employers for each employee's pay up to the poverty line. If employers don't pay poverty level wages, the government is stepping in with federal benefits. A tax credit is a more efficient transfer mechanism than the current system as well, but still encourages some sort of productivity.