Basic Income: Unintended Consequences

Post by dawnbreez » Wed, Feb 17, 2016, 4:23 PM UTC

desireco42 wrote: post #42

jjxw wrote: post #23

Earlier quoted context omitted.

In general, I agree, but there is a cost to such regulation in the sense that it would make banks more wary to lend to legitimate borrowers on the promise of future basic income payments. Making it illegal to seize basic income assets in the event of default creates a classic adverse selection problem where bad actors will have incentives to attempt to take a loan. That being said, the point of a basic income in the…

Maybe you didn't read it completely or I was not clear, I would just make it illegal to lend money expecting it to be paid by basic income. Anyone getting basic income should be completely free to spend it any way they want. That is essential.

Post by dawnbreez » Wed, Feb 17, 2016, 4:34 PM UTC

jmspring wrote: post #35

The individual is pretty flawed in his reasoning and examples... "Since the lifetime of the average person is roughly 78 years, net present valuing a lifetime of $12,000 yearly basic income payments works out to roughly $287,000 assuming that yearly payments total $10,000 and applying a 4% yearly discount factor. That is enough to purchase a median priced single family home" While factually true, in total, $12k a yea…