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Basic income would not reduce people’s willingness to work

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Re: Basic income would not reduce people’s willingness to work

#71
Is it just me or is it impossible to mimic (and therefore test the psychology) of the real impact of UBI unless you implement it across a nation-state. For example, let's say you test in a small town in Minnesota. It's impossible to rule out variables such as federal taxes, healthcare costs, mobility, etc.

I therefore think its impossible to test UBI on the scale of the US for example.

Re: Basic income would not reduce people’s willingness to work

#72
post #34
post #27

Earlier quoted context omitted.

> there are plenty of jobs where you absolutely will quit And so what if people refuse to do shitty jobs? Perhaps we as society can do without those jobs. And if we can't, we should value them more

Which is exactly what will happen. The pay for those jobs will increase, until such a point where it becomes cheaper/easier to just not have the job in the first place. I don't honestly know why whether or not people will work even factors into one's support for UBI. Some people will keep working, some people won't. Nobody will starve so that seems like something in the "pro" column at least.

It depends if you just end up paying people not to work. Money doesnt just have some "value" you can share like a pie. The value in money is just the productive capacity of an economy.

If you're paying large numbers to do nothing, the value of that money plummets and people will starve.

Recall: 50% of the country make less than the median wage... UBI is going to have to be way below this to preserve the very wealth which UBI redistributes

Re: Basic income would not reduce people’s willingness to work

#73

Multiple studies of where basic income was tried in the real world found it to reduce work. For example, "Manitoba, Canada experimented with Mincome, a basic guaranteed income, in the 1970s. In the town of Dauphin, Manitoba, labor only decreased by 13%, much less than expected" [1]. There are plenty of others. I expect a targeted need use of scarce resources (tax money) is a much better use for helping those who need…

How much of that labor reduction was second jobs?

Re: Basic income would not reduce people’s willingness to work

#74
I think it’s the same reason people rarely choose frugal FIRE approach, that is, live spending as little as possible to optimise for early retirement. People generally have way too many desires for it too be enough. The pecking order dynamic, social pressure, etc, are far stronger forces I think.

Re: Basic income would not reduce people’s willingness to work

#75
post #55
post #34

Earlier quoted context omitted.

Which is exactly what will happen. The pay for those jobs will increase, until such a point where it becomes cheaper/easier to just not have the job in the first place. I don't honestly know why whether or not people will work even factors into one's support for UBI. Some people will keep working, some people won't. Nobody will starve so that seems like something in the "pro" column at least.

Those who work and thereby pay for the UBI may feel that freeriding is actually unjust, and not the hallmark of a glorious new post-scarcity society?

I'm sure some will. Some won't. So what?

I'm not trying to be dismissive, but this strikes me as a "but some people will be upset!" argument, which seems irrelevant to whether the policy achieves its stated goals or not.

Re: Basic income would not reduce people’s willingness to work

#76

A link to the actual research paper would be helpful. In this experiment, what amount was given to the treatment group that received basic income? How often? How does that amount compare to the cost of living in their city? > ‘It’s sometimes said that people will sit around doing nothing if you give them free money.’ I’m not an academic, so take this with a grain of salt. If my job requires menial labor or involves g…

The more money you have - the less value a marginal dollar has. I think there would be a massive pressure to raise minimum wage. Why would you work for $7.50 an hour and pay $1 in taxes - spending the majority of your day to make ~$50 - that doesn't buy much - and you don't have much time to spend it anyway? When your options are either do that or be homeless and hungry - most people opt for work. But when you have o…

UBI might cover your food and rent, but it won't cover much past that. So if you want some beer money or a new videogame or whatever, you'll need to work.

And since after UBI every dollar after taxes goes to luxuries, a low income provides a lot more luxuries than it does before UBI, so it's actually a lot more appealing to work -- you see the benefits directly.

Re: Basic income would not reduce people’s willingness to work

#77
post #15

We did a type of UBI experiment in the United States with the universal Covid payments. Low income workers got 80% of the salary. Many chose not to work. Why work 40 hours to make 20% more money than the dole? I’m acquaintances with two local business owners, a roofer and a general contractor, and they told me plainly that they were understaffed because their workers were taking a vacation until the Covid payments en…

The actual UBI element in Covid payments was minimal. Most of the money went into traditional unemployment benefits, which make low-income jobs unattractive by increasing the effective tax rate to something like 80% or 90%. That's one of the key issues UBI is supposed to fix.

UBI would require complete restructuring of income taxes and benefits. Everyone would receive a fixed sum every month, standard deductions and other common deductions/tax credits would go away, and you would pay something like 40-50% combined income/payroll tax for every dollar you earn.

Re: Basic income would not reduce people’s willingness to work

#79
post #55
post #34

Earlier quoted context omitted.

Which is exactly what will happen. The pay for those jobs will increase, until such a point where it becomes cheaper/easier to just not have the job in the first place. I don't honestly know why whether or not people will work even factors into one's support for UBI. Some people will keep working, some people won't. Nobody will starve so that seems like something in the "pro" column at least.

Those who work and thereby pay for the UBI may feel that freeriding is actually unjust, and not the hallmark of a glorious new post-scarcity society?

Most of the productivity gains go to the top percentage of people. Despite massive gdp increases in 20 years wages havent budged.

If all the work was automated/outsourced those people would still make the same money.

These are the people who ostensibly will pay for UBI and automation/outsources is one of the cases for UBI.

Re: Basic income would not reduce people’s willingness to work

#80

Multiple studies of where basic income was tried in the real world found it to reduce work. For example, "Manitoba, Canada experimented with Mincome, a basic guaranteed income, in the 1970s. In the town of Dauphin, Manitoba, labor only decreased by 13%, much less than expected" [1]. There are plenty of others. I expect a targeted need use of scarce resources (tax money) is a much better use for helping those who need…

If UBI could be implemented in around the same cost as the welfare programs it replaces, it would have a net zero effect on inflation. The downside of nearly all current forms of welfare (in the U.S.) is that they largely enforce the poverty gap. You get to a point where a small increase in pay causes a large decrease in benefits, and you become trapped unless you can get a large enough pay increase to jump the gap.

The two big ifs are: would UBI be the same cost as current welfare programs, and can we actually get rid of current welfare if we roll out UBI? There is a tremendous amount of overhead involved in current welfare programs, so it's not unreasonable that the first question is could be resolved. Politically, the second issue seems unlikely to be implemented.

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