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We're officially launching UBI

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Re: We're officially launching UBI

#161
post #157

Earlier quoted context omitted.

I disagree. It may not be targeted to an industry, but it is a colossal subsidy that will greatly affect markets in a lot of ways. Plenty can be done to eliminate poverty. I'm confused why you would think large-scale involuntary wealth redistribution is the only way.

> it is a colossal subsidy that will greatly affect markets in a lot of ways It is, by definition, not a subsidy since it does not target a subset of economic sectors. > Plenty can be done to eliminate poverty. Name one means of eliminating poverty without wealth re-distribution or subsidies. The only ones I know of involve sterilizing, deporting, killing or otherwise demographically elminating poor people.

It will absolutely subsidize the industries most likely to gain from poorer people having more money. The yacht and high-end watch industries will not benefit while housing, auto, and entertainment industries absolutely will. This is basic common sense.

Nobody's eliminated poverty yet, so it may be impossible. We do have ways of fighting it, though, which can (and does) include charitable giving (note: voluntary) and economic development of areas.

Re: We're officially launching UBI

#162

Earlier quoted context omitted.

I disagree. It may not be targeted to an industry, but it is a colossal subsidy that will greatly affect markets in a lot of ways. Plenty can be done to eliminate poverty. I'm confused why you would think large-scale involuntary wealth redistribution is the only way.

Just to point out this program is not involuntary. All the funds so far as I understand it, have been generated voluntarily.

Right--sorry. For clarity's sake, I was referring to actual UBI. For these studies (as far as I'm aware), it's voluntarily collected money from outside the area.

Re: We're officially launching UBI

#163
post #118

Earlier quoted context omitted.

No idea why this is being downvoted. It's plain as day.

Not sure but maybe because it's not that politicians of all stripes want people to starve but that there is disagreement on how to bring that about. It's a painfully true reality that there are people who when given every opportunity, trust funds, etc, they are still immense drags on their community and economy as a whole with the destruction they leave behind in their wake. How will UBI deal with it's empowerment of…

Nobody disputes that there are lazy people who wouldn't work if given UBI. The dispute is whether that is actually a problem for UBI.

The questions we need answered to know this are:

1) How many (what proportion) of these lazy people are there?

2) How much economic output is wasted by employers trying to filter these lazy people out of their workforce.

3) How much economic output is wasted by the systems employers have to create to force the lazy people whom they do hire to be productive.

4) How much economic output can we gain by giving non-lazy people a safety net that allows them to find ideal vocations for their talents and preferences.

Proponents of UBI generally maintain 1) is low enough to be out-weighted by 2-4) while skeptics claim it is high enough to out-weight 2-4)

Really, these questions can only be answered by data. While 2) and 3) will be very hard to measure with small/medium studies, we can start getting a pretty good idea of how big 1) and 4) are respectively. So far there have been promising indications that 1) may well be out-weighted 4), but we need more, better and larger studies to be sure.

UBI's biggest challenge will likely not be finding ways to minimize 1) vs. 4) sufficiently, but will be finding ways to overcome people's cultural and political fear of 1)

Re: We're officially launching UBI

#164
post #141

Earlier quoted context omitted.

Destroying the paid market for a minimum standard of existence is the whole rassafrassin' point! The idea that you have to pay something if you want to continue living is the root cause of trade relationships that are fundamentally skewed against the already-disadvantaged party. You give everyone the bare minimum for free, and charge for anything on top of that. It's the freemium model applied to national economies,…

> Destroying the paid market for a minimum standard of existence is the whole rassafrassin' point! Except those paid markets are critical for finding and creating the efficiencies that allow us to raise everyone's standard of living. We need to balance the trade relationships, but we need to do it with without destroying these markets. Indeed, balancing the trade relationship means increasing the number of choices av…

If you don't produce it directly or demand it as taxes, you can't guarantee that it gets produced at all. And you need to guarantee that, if you're going to go around giving it away for free.

You don't need a bureaucracy to figure anything out. I have already done it. Everyone gets 2 L of bottled drinking water, 2200 kcal of food, a lockable room about 8'x10'x8.5', tap water, electricity, and Internet. The utility numbers mostly came from current usage statistics, the room size is based on solitary-confinement prison cells and self-storage units, and food and water based on the generally recognized dietary subsistence level of 2000 kcal/day and 1 mL/kcal rule of thumb for drinking water. An easy way to do it is to rely on the Geneva Conventions. If you cannot supply conditions sufficient for humane treatment of refugees and prisoners of war to your own citizens and residents, your numbers are wrong.

If you don't like the food you get with your ration, sell it. I'm sure there will be a service around to collect your unwanted UBI tangible goods and resell them to someone else in exchange for a cut of the proceeds, so you can get more, different, or better of something else that you do want. If you're a petite lady, you could likely trade in your 2200 kcal of basic UBI food for enough cash to buy 1800 kcal of better food. If you don't use all your free electricity, you could use it to mine bitcoins or purify copper electrode or recharge batteries. If you don't use your tap water, you could do someone else's laundry for money. But I picked the numbers to be in the "this kinda sucks" territory for a typical American. You'll probably always want more than you get, and for that, you still need to access the paid trade markets. And if for some reason you don't already want more than you get, that's what advertising is for.

The same calculation problem exists with the cash-only vision of UBI. Someone has to decide how much is enough. But then that number constantly changes as prices adjust to what people actually buy with their "enough".

The point of the tax thing is that the US has long been conditioned to be averse to communism in any recognizable form, and a less sizeable fraction is also averse to fascism. The fact remains that whatever you want to give away for free has to be produced first, and you can't guarantee that a for-profit business would make enough as long as it is possible to earn higher profit by producing less. If the government needs 750 Tcal of food to meet its UBI requirements, it can do one of 3 things: own farming capacity sufficient to produce it, order existing agribusiness to produce at least that amount and surrender it, or tax/print whatever it takes to buy that much on the open market. If communism is unacceptable, you have to do one of the other things, and the latter has the potential to destabilize your entire monetary system.

Re: We're officially launching UBI

#165

Earlier quoted context omitted.

They are usually very similar, depending on how your you set up your tax brackets. There might be operational differences, depending on concrete proposal (dispensing cash yearly vs. monthly, etc.)

>dispensing cash yearly vs. monthly Which is not at all similar if you're poor.

Of course not, but that's neither here nor there when looking at differences between negative income tax and UBI. Both can be implemented on monthly basis.

Re: We're officially launching UBI

#166
The math on UBI doesn't work. It simply resets $0 to some higher amount set by UBI. It's a means of inflation and hilariously, it will make the rich even richer, because it will remove some incentives to do what it takes to get rich - learn skills and information that make you wealthy.

The story that comes after UBI and other forms of socialism is that humans are greedy and terrible to each other and institutionalized theft only makes greed and corruption worse.

Oh, and the funniest part is it will look initially like a good idea because it will probably improve the lives of those who are given money in small and rare cases, and the positive effect will dwindle the more universal it becomes.

A wiser move would be to teach others how to compete more effectively, but that doesn't sell as well as free money. The people doing these programs aren't stupid and I think it is our generation's "Let them eat cake!" moment. It's certainly good marketing to do so, and I think they believe it will truly make a difference.

One last thought on my silly little rant, "Do you think Mark Zuckerberg or Bill Gates or Warren Buffet should get UBI paid out to him?"

Re: We're officially launching UBI

#167
post #32

I wonder what the differences are between UBI and the day to day life’s of people who get straight cash payments for being citizens like: UAE, Saudi Arabia, Native American tribesmen with successful casinos etc. To my knowledge, it ain’t all sunshine and rainbows (technical term) for them either. They suffer stagnation, heavy dependency into oil money(for those in the Middle East), and it’s dsfinitely a time bomb whi…

I'm only really familiar with Abu Dhabi but there, idleness is a concern. It's directly evident in schemes such as paying school children to exercise. However, it is masked somewhat in the adult population as foreign companies are required to employ natives in senior positions. Anecdotally, the incumbents aren't famous for their work ethic. But it's hard to argue that it's not overall positive for the local populatio…

thats an issue I considered as well for the gulf states. What happens when there is less oil consumption ? I’m very much hard pressed to think of a global company that has come out of these for all intensive purposes UBI countries. (Please don’t cite Aramco or Emirates etc. As they all are either started or staffed largely by Americans and Brits)

Re: We're officially launching UBI

#168
post #134

Earlier quoted context omitted.

At its heart, UBI sounds like a good thing but it ignore basic human nature and particularly in-group and out-group conflicts. UBI in America would calcify a class system where one group of people works and another lives off their work. The working group will come to resent the non-working group and it will further divide the society. People are living a bubble if they don’t think this would be a major source of poli…

Nobody is talking about giving you 50k and free housing. You would likely receive much closer to 15k (federal poverty level) and free housing (if any) would likely not be in a ski town. Good luck affording food and rent in a ski town, plus enough video games to keep you busy all year on 15k. You might quit your full time job, but you would probably find some part-time programming work you enjoyed to allow you to affo…

> 1) How many of these lazy people are there? > 2) How much economic output is wasted by employers trying to filter these lazy people out of their workforce.

I am pretty lazy but I'm not lazy all the time. I don't think there exists such a classes of "lazy people" vs "non-lazy people". Laziness is a mood, a state. It can be altered by motivation. Income is one important motivator although arguably not the only one.

My point is, if we have welfare state with UBI, we will form in-groups and out-groups just as you describe. The taxes of all the "non-lazy” group will be unbearable high. You will hear choruses of complaints from them. They will resent those “lazy people”. Let’s add some other component like race, language or country of origin and you have society more divided than before. These are just a few of the unintended consequences I would see.

And 15k is hardly enough to sell this program politically. You can get that now on disability.

> You might quit your full time job, but you would probably find some part-time programming work you enjoyed to allow you to afford good snowboards

I can get by on a used snowboard. I could also steal on from one of those “non-lazy people” :)

Re: We're officially launching UBI

#169

How can you meaningfully experiment with UBI if the “BI” is not even universal ? My understanding is that many of the criticisms of UBI are based on externalities that would only become manifest in a meaningfully large population. For example, price increases and inflation might arise from everyone having extra money. If you’re only testing UBI on a small population, then 1) it’s not even universal, and 2) there will…

> everyone having extra money No. UBI redistributes income (slightly differently than welfare). It does not create new money.

Then many (the upper half of?) citizens will have tax burdens greater than their basic income payments.

Is it “not means tested” because you and the IRS both mail each other checks instead of using net settlement?

What makes UBI different from standard progressive taxation and welfare?

Re: We're officially launching UBI

#170
post #141

Earlier quoted context omitted.

> Destroying the paid market for a minimum standard of existence is the whole rassafrassin' point! Except those paid markets are critical for finding and creating the efficiencies that allow us to raise everyone's standard of living. We need to balance the trade relationships, but we need to do it with without destroying these markets. Indeed, balancing the trade relationship means increasing the number of choices av…

If you don't produce it directly or demand it as taxes, you can't guarantee that it gets produced at all. And you need to guarantee that, if you're going to go around giving it away for free. You don't need a bureaucracy to figure anything out. I have already done it. Everyone gets 2 L of bottled drinking water, 2200 kcal of food, a lockable room about 8'x10'x8.5', tap water, electricity, and Internet. The utility nu…

> If you don't produce it directly or demand it as taxes, you can't guarantee that it gets produced at all.

How the heck does that work? Demanding bottled water as taxes is ridiculous. Either producing the bottles water is cheaper than paying equivalent taxes, and every company will do it or it is more expensive and nobody will do it.

Add that to the fact that you are trying to mandate the production of 4x the bottled water that the US currently uses per capita. This means there will be NO market for bottled water and thus you will have no idea the of the value of the bottled water that is being used to pay taxes.

Why mandate the production of 8x10x8.5 rooms for every citizen when most people won't want that? Why waste large amounts of energy and petrochemicals producing enough bottled water to hydrate the population? Why waste everyone's time by forcing them to engage in secondary markets to resell the goods they don't need?

> The same calculation problem exists with the cash-only vision of UBI. Someone has to decide how much is enough.

Yes, but this is a far simpler problem. We can use measures of inflation, economic growth and employment to determine the level of UBI that we can afford and that will optimize economic output.

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