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Universal Basic Income is Capitalism 2.0

timjrobinson.com

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Re: Universal Basic Income is Capitalism 2.0

#61

I can’t help but think that UBI would distort job markets. Let’s pick an example of a “sucky job” (and I say this as just an example, I realize these guys work hard and are vital). A garbage man. He get’s paid $42k a year because they have to find people who would be willing to do this sucky job and need to pay higher than minimum wage to do so. At some point of income, people would be willing to accept the suckiness…

UBIs also have the capacity to expand the workforce. As I age, I find my social circle increasingly includes people who can't work a traditional 9-5 job -- whether that's temporary (caring for an ill family member, early parenthood, etc.) or permanent (illness, disability, harmed on the job).

At least in New Zealand, those who can claim a benefit from the Government end up in a welfare trap, because we reduce welfare payments as you regain an income. There's no immediate financial benefit to you, the welfare recipient, in working 10-20 hours vs. not working at all.

There's a whole philosophical discussion involved in whether those people should have to work, but rightly or wrongly, a lot of societal and personal value is derived from employment. A UBI deletes the welfare trap, and allows people who exist on the margins/are incapable of full-time work to find and immediately benefit from employment again. Maybe the garbagemen will need to be paid more, but we should also see more part-time workers put their hands up.

A UBI would certainly change job markets; I'm not sure whether "distort" is the right word.

Re: Universal Basic Income is Capitalism 2.0

#62
UBI is extremely dangerous as long as governments exist. Take what China is doing with their citizen score and it's not hard to imagine what could go wrong.

"...imagine how easy it would be for such a government that was also providing a basic income to its citizens to manipulate their citizens based on that basic income that they depended on. If they can deny citizens access to things like public transportation based on their ‘citizen score’, they can also deny those citizens (part of) their basic income depending on how ‘good’ their behavior is. So if you were too critical and thinking too independently, you could very easily be denied your basic income, and this could be a serious problem especially if you were brought up to be dependent on the government and to (heavily) rely on the income they provided."

More: https://blog.kareldonk.com/an-example-of-the-dangers-of-a-go...

Re: Universal Basic Income is Capitalism 2.0

#63

I can’t help but think that UBI would distort job markets. Let’s pick an example of a “sucky job” (and I say this as just an example, I realize these guys work hard and are vital). A garbage man. He get’s paid $42k a year because they have to find people who would be willing to do this sucky job and need to pay higher than minimum wage to do so. At some point of income, people would be willing to accept the suckiness…

Taxation is not necessarily regressive. Where I live, income tax accounts for almost all of the tax I pay, and income tax is very much progressive.

But also where I live, the garbage man is not a public employee, but an employee of a private garbage company. So my taxes don't need to change, instead my garbage bill goes up. That would be regressive, since a garbage bill is a higher percentage of poor people's income. But some poor people just don't pay the garbage man, and instead take their garbage to the landfill themselves, which is way way cheaper.

Incidentally, you can make the same argument about minimum wage increases - the cost of getting low wage work done increases, so prices increase. I don't want to get into an argument about the effectiveness of that, but the evidence generally suggests minimum wage works better than conservative naysayers sometimes claim.

Re: Universal Basic Income is Capitalism 2.0

#64

I can’t help but think that UBI would distort job markets. Let’s pick an example of a “sucky job” (and I say this as just an example, I realize these guys work hard and are vital). A garbage man. He get’s paid $42k a year because they have to find people who would be willing to do this sucky job and need to pay higher than minimum wage to do so. At some point of income, people would be willing to accept the suckiness…

UBI frees people from economic coercion. poverty is like having a gun to your head. you do what you’ve gotta do. if salaries for essential, dirty jobs must go up, i am all for it.

To me, it seems like man's constant fight against the brutality of mother nature will never end. As long as we need food, need medicine, and entropy destroys what we create, we will need a lot of people working to solve problems.

Any conception of basic income where we can freely give out $2000 a month to everyone has a net present value roughly equal to giving each person a lump sum payment of $500,000. There's not enough wealth in the world to sustain it.

Re: Universal Basic Income is Capitalism 2.0

#65
post #21

> Even the most hardcore anti-capitalists have to give respect to how the combination of capitalism and technology has worked to lift most of the world out poverty and provided us with the security and comfort only kings enjoyed just a few century’s ago. no, we fucking don't.

Why not?

A few centuries ago we didn't have lighting, refrigeration, microwaves, electric ovens, clothes washers and dryers, cheap food, even fruits were only seasonal whereas in many capitalist-favoring places in the world now you can buy them year round. You can eat meat for every meal.

The view from the kitchen alone makes us look like we live like kings from centuries past.

Not to disregard the downsides of capitalism - rent seeking being just one of many. But to say we aren't living in the luxuries of capitalism is disingenuous IMO.

Re: Universal Basic Income is Capitalism 2.0

#66
post #21

> Even the most hardcore anti-capitalists have to give respect to how the combination of capitalism and technology has worked to lift most of the world out poverty and provided us with the security and comfort only kings enjoyed just a few century’s ago. no, we fucking don't.

Can you provide any facts to refute his claim? It’d be hard to argue against him on this one.

Re: Universal Basic Income is Capitalism 2.0

#67

most of the middle eastern countries have UBI. Hasnt really done anything for them

You’re unfortunately getting downvoted because you did not elaborate: Iran [1], Saudi Arabia [2], ...

[1] https://en.m.wikipedia.org/wiki/Basic_income_around_the_worl...

[2] https://en.m.wikipedia.org/wiki/Citizen%27s_Account_Program_...

Re: Universal Basic Income is Capitalism 2.0

#68
post #8

No, a land value tax is Capitalism 2.0 - deriving tax revenues from people who don't work instead of people who do work.

That’s a really regressive tax and would punish poor people, who have a much greater portion of their net worth tied up on land than a rich person.

Wait... land tax is regressive because poor people have a greater proportion of their net worth in land?

Literal nonsense. What is this economic wonderland you live in where poor people have land and assets?

As for land tax, you can make it progressive with 0% for the first 1m to cover people in high cost areas with only a family home.

Re: Universal Basic Income is Capitalism 2.0

#69

I can’t help but think that UBI would distort job markets. Let’s pick an example of a “sucky job” (and I say this as just an example, I realize these guys work hard and are vital). A garbage man. He get’s paid $42k a year because they have to find people who would be willing to do this sucky job and need to pay higher than minimum wage to do so. At some point of income, people would be willing to accept the suckiness…

UBI frees people from economic coercion. poverty is like having a gun to your head. you do what you’ve gotta do. if salaries for essential, dirty jobs must go up, i am all for it.

> if salaries for essential, dirty jobs must go up, i am all for it

so all goods and services that require said "dirty job" in the supply chain will go up in price. This eventually negates the UBI benefits, because the level of UBI no longer can sustain purchases of all the goods and services that it originally could due to the increases in prices.

So do you increase UBI to counter this? Or do you let it be, and UBI no longer pays enough to maintain the same level of living standard. In which case, people are now once again, forced economically, to work "dirty jobs" despite not wanting it.

Re: Universal Basic Income is Capitalism 2.0

#70

Won’t it just be negated with increased cost of living? If people get 1000 a month free, you better believe that rent starts at 1000. The free money will never do what it’s supposed to do in the long run. It’s better to just give the actual service for free (healthcare, college, transportation).

1. Inflation is primarily a monetary phenomenon. So as long as you pay for UBI through increased taxes rather than by borrowing or printing the money, it won't cause overall inflation. Certainly it will cause local distortions -- some stuff will go up in price but that should be balanced by the stuff that goes down in price.

2. Another possible theory is that UBI will allow people to move away from expensive cities to areas that are cheap to live in. $1K a month won't go far in SF, but you might be able to live on that in the middle of nowhere without having to fin a job. So decreased demand for housing in expensive cities means that UBI might cause housing prices there to go down.

3. Housing problems are fairly orthogonal to UBI. In pretty much every other market supply can rise to match increased demand so that prices stay close to their marginal cost of production. We need to fix our housing pricing problems UBI or no UBI.

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