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Moving Forward on Basic Income

blog.ycombinator.com

311–320 of 1001 posts

Re: Moving Forward on Basic Income

#311

I grew up with basic income. In high school my parents gave me $25 a week. If I wanted a new bicycle or expensive sneakers I had to work. At the time $25 covered going to the movies on a Friday or $7 grand stand seats at Fenway. Maybe we should look at how teenagers manage allowances.

I don't think that's a good test case because allowances don't have to go to things like basic necessities so leisure and nonessentials get all the money and there are a lot of constraints on what a teenager can do. They're bound to their home and have limited free time to do other things.

Re: Moving Forward on Basic Income

#312

Earlier quoted context omitted.

You completely side stepped the question. I find it absolutely amazing how naive BI supporters are. I grew up poor in a ghetto in New York. Studied, went to university, became an engineer and am no longer in that socioeconomic bracket. However it is very apparent that the people in my current bracket (the one's that support BI), have no idea about the issues of the poor. Poor people are mostly poor because of the dec…

If you are an engineer I would expect a better capability of root cause analysis than that. Your list of things there is entirely comprised of things that are largely outside of the control of individuals. "Poor people are mostly poor because of the decisions they make." * Drug addiction Yes, a person can choose to use drugs. Usually the choice is made under intense peer pressure and at a young age. We won't let chil…

Wow, this is extremely condescending with no actual backing information.

The fact of the matter is, people make bad choices. People who make bad choices are more likely to be poor. Lack of impulse control is extremely prevalent in poor communities. Like the GP, I was poor, I know poor people, and 95% of them are just shit at thinking long term.

The educational system fails people sure, but why does that mean we should give $1200/mo to people who do not have the necessary discipline to use it appropriately? CCTs have been used extremely effectively, and do combat this problem on a structural level.

There is actually a huge lack of skilled professionals in blue collar fields. We import mechanics at a ridiculous rate. This is true throughout a large portion of the world -- a SKILLED mechanic in Mexico can earn roughly the same wage as a skilled mechanic in the U.S...

It is hard to support your basic needs because you need to budget appropriately and you don't have extra money to spend -- but a large portion of poor people spend it anyway. I can't tell you how many of the people I know will drop $30 on some alcohol, drugs, club cover, concert, when they know that they'll be struggling to pay rent at the end of the month.

If you're actually an engineer you'll realize that most problems are multi-faceted and flat out telling people who have lived in a situation that some poorly researched secondhand analysis (i.e. the joke that is modern Sociology) is more relevant is absurd.

Re: Moving Forward on Basic Income

#313

Are there any papers addressing the issue "basic income increases the returns to owners of scarce goods" issue? I don't know what the correct name is. Use case: A 250 square foot apartment in a building with twenty annual homicides rents for $350 per month before basic income. After basic income, the same apartment rents for $1350 per month, because the rent on all the apartments in safer buildings has gone up due to…

> Are there any papers addressing the issue "basic income increases the returns to owners of scarce goods" issue? I don't know what the correct name is. The correct name is "inflation", the effect to which this is effect is present for suppliers of any particular good is measured by "price elasticity" -- both price elasticity of demand and price elasticity of supply play a role (in a real tax-funded BI, which is redi…

"Inflation" occurs when the money supply increases but the supply of things money can buy does not increase.

If basic income is funded by taxation, then the money supply does not increase. Every dollar distributed to the set { A, B, C ... } is taxed away from the set { A, B, C ... }, so the purchasing power of the set is unchanged.

Re: Moving Forward on Basic Income

#314
Although I admire the intent here, my opinion is that it's focused on the wrong variable. Lack of "enough" income is not the root of the problem for why people get sucked into poverty and stuck there. The problem is that working people have become increasingly unable to turn their income into equity. And the number one expensive expense of "shelter" is why. So the poor people will have more money to pay rent ... woohoo. Landlords in Oakland are probably already salivating, factoring this into their next rent increase, maybe even planning to build a few more "brand new affordable housing units" in a complex that will increase both supply and price of rent. Are people ever motivated to work harder to pay their landlords more? Almost never... But give them an opportunity of ownership, and that truly turns the tables on not only what kind of work they can do, but how they spend their time and money.

I'm slowly building Ecosteader to go this direction of enabling ownership to build equity. My motivation was originally to build a land development network of people interested in green / sustainabile building, but the more I investigate this piece of the project, the more apparent it becomes that land ownership really does solve both problems in one. People who own land or homes tend to care more about environmental quality / NIMBY issues.

For the "property tax is just rent" crowd arguing that angle -- property tax on a small and undeveloped piece of land is almost nothing... build a small structure on that land and it doesn't go up by that much. In 90 percent of the US, I'd imagine that tax for the whole year is less than one month's rent in Oakland. It's when people who have massive square footage on massive acreage start complaining that property tax makes them poor that the perception gets skewed.

Re: Moving Forward on Basic Income

#315
post #264

Earlier quoted context omitted.

You completely side stepped the question. I find it absolutely amazing how naive BI supporters are. I grew up poor in a ghetto in New York. Studied, went to university, became an engineer and am no longer in that socioeconomic bracket. However it is very apparent that the people in my current bracket (the one's that support BI), have no idea about the issues of the poor. Poor people are mostly poor because of the dec…

Well, it's a study... I can totally see giving someone $1200 once will not going to food and shelter. But just maybe, over time, it'll relieve what may be a sense of hopelessness, or other complex social factors that leads people to poor decisions. And it may not help for 100% of people in that socieconomic bracket, but optimistically I think it could help a large number of people get out of a bad cycle.

No, it's literally called enabling, and it doesn't help people's problems. There's a reason why you're told to cut off funds to people who have problems like this.

Re: Moving Forward on Basic Income

#316
post #60

So, a question for the BI fans: I've seen it said repeatedly that BI will save us money (or at least, not be so outrageously expensive) in part because we can eliminate existing welfare programs. "Just cut a single check, no more overhead from several agencies", they say. But riddle me this: what do you do when someone on BI has a financial emergency or, as will happen with some regularity, just flat-out blows all th…

This is the wrong question to ask, based on the wrong premise.

The point of BI is NOT to save money but to provide income for the increasing number of people who wont be able to provide value for the labour market.

If someone has a secured income then there is also a better chance that they can get insurance, a loan and so one.

Re: Moving Forward on Basic Income

#317
What amazes me in this discussion about BI is that most people don't seem to realize that systems similar to BI have already been tried in Europe, and that they didn't work.

I come from the Netherlands, which has always had unemployment benefits. Nowadays you get those only if you meet a bunch of strict conditions but it hasn't always been so tough. In the early eighties, there were almost no checks whatsoever. The result was that many people started to see the benefit as a 'right', and that the choice to work or not to work was a matter of personal choice. So basically the same thing that BI tries to achieve. But the result in the Netherlands was that more and more people chose not to work, or chose to do work that didn't pay anything, or worked for black money and collect the social benefit at the same time. In the end the whole system just got too expensive and had to be adjusted to be much more strict.

Tl;Dr; BI is a very nice idea on paper but unfortunately becomes too expensive in practice.

Re: Moving Forward on Basic Income

#318

> Oakland is a city of great social and economic diversity... Ok, here's an honest question. These days we often are told that increasing diversity is the responsibility of all successful healthy organizations, end-of-discussion (see: GitHub). Under what conditions would increasing _economic_ diversity be seen as a good outcome?

Few people complain when rich and middle class people start moving into historically low income areas (at least until the poor can't afford to live there)

When it applies to companies, I think it's pretty universally suggested that hiring people from poor backgrounds who've worked very hard to get close to the hiring thresholds and are probably being overlooked by other companies is usually a good decision. You don't get any additional "diversity benefit" from paying them less though...

Re: Moving Forward on Basic Income

#319
post #213

People wonder "where is the money going to come from?" On a national level it could be newly issued fiat currency, which silences the "it's theft!" argument but then raises the crucial question: what about inflation? Well, there are two issues here: 1) If the people are freed up to learn or take jobs (I wish minimum wage would be abolished in any jurisdiction that UBI is given out) then more dollars would be chasing…

"newly issued fiat currency" is theft. Forced inflation is theft from people with savings etc etc etc.

Re: Moving Forward on Basic Income

#320
It's in the corporate interest to promote Basic Income. Relieves the social unrest of an automated future.

Corporate calls for Basic Income aren't very credible unless they come with a new corporate tax.

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