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India floats the idea of a universal basic income

economist.com

151–160 of 252 posts

Re: India floats the idea of a universal basic income

#151
My vote goes to redistribution of wealth, by means of a progressive tax that starts negative.

It is the human thing to do. But it also aligns with economics and politics.

Redistribution: because more money at the bottom, means a larger overall market, and I think a more stable economy.

Progressive tax: any paying work will always improve your situation. (So people stay motivated to work.)

Taxing wealth creation (and to a lesser extend, wealth) makes sense. It needs a society with law and order and property rights. That needs to be payed for. But of course not so much as to discourage wealth creation.

Most societies already redistribute wealth. Minimum wage, social programs, health programs, pensions, some form of subsidies. UBI is a more disciplined way of doing this. And just like these programs, you can tune that knob from low to high.

Re: India floats the idea of a universal basic income

#152
I agree with the second part of this exceprt from the article, first having already been taken care of -- It will take time before 1.3bn Indians receive such a transfer. Keen as Mr Subramanian is, he concludes that UBI is “a powerful idea whose time even if not ripe for implementation is ripe for serious discussion.”

Re: India floats the idea of a universal basic income

#153
post #88

Earlier quoted context omitted.

It's not about jobs existing, it's about jobs existing at . We're far from that point now, so how am I supposed to take comfort in a technical argument that it won't get worse than ?

There's also the factor of those jobs being more effectively performed by humans than by machines.

That is a good outcome. If machines are good at a job that means human capital can be diverted to something more better and important.

Re: India floats the idea of a universal basic income

#154
post #139
post #17

In other developed countries, I think universal basic income makes sense, but not in the case of India. India has several systemic problems and a significant portion of the population has little to no education. Any income that can sustain a household without any pressure to grow as people will probably hinder their progress more so than help them. For a country with no lack of problems to solve, they are much better…

>> Any income that can sustain a household without any pressure to grow as people will probably hinder their progress more so than help them. I disagree. I believe the better place where one should do this is where it's needed the most. People tend to believe that when given money, others will just sit back and get lazy doing nothing. Matter of fact is you need money to do anything; to give your children a better edu…

While I agree with you on the perks of a UBI, I think India is not yet in a place where UBI could work.

As mentioned in the article, the pay would be a meagre Rs. 7000 per annum. To put it in perspective, I found it hard to keep my expenses per month to under Rs. 8000, living frugally as a student, with basically free housing and subsidized food.

Sure there are millions of people who would appreciate this sum and might gain some benefits from them, but it would be inconsequential to about 70-75% of the population. That's a lot of money wasted. It might br better to have focused welfare programs which would put this money to better use. For instance, government sponsored vocational training programs. India has a vast network of NGOs, and many of them have such programs. Another venue to invest this money might be on rural education systems. A disturbing number of them are not functional, where both teachers and students infrequently visit a shabby one room building to have free mid-day meals (I don't have any woes with this program, btw). Better infrastructure, better teacher training programs, are all venues that would benefit from the money. Ofcourse these venues are riddled with a corrupt administration which would substantially diminish the returns, but UBI distribution too might have similar problems.

Basically, in a country with this population, and with a huge wealth divide, I think UBI is a very ineffective welfare program.

Re: India floats the idea of a universal basic income

#155
India is very special, traditionalist society. As person who have spent a considerable time living in North India, I would say that people will turn this free money into gold and garments and other status symbols, like mobiles, which in turn, will cause inflation and soaring of prices of gold and other assets.

The analogy could be a land in the great plains of US. In San Francisco or New York the value and the price of land is ridiculously huge, while in plains it is almost free - no one needs it. Similarly, free money will simply lose any value and some new form of wealth storage and accumulation would emerge very quickly.

BTW, in India there is a free food available in many big temples, but for some reasons lots of people prefer to eat at home. In India people do not run after money per se, but for social status, which is a cornerstone of the Indian culture.

India is special. They have many local government programs to give nutrition to the poor, which does not work well due to rampant corruption. Simply distributing money to a bank account will obviously eradicate some corruption, the problem is that, perhaps, a third of population in some areas have no bank account.

Re: India floats the idea of a universal basic income

#156
post #143
post #132

Earlier quoted context omitted.

> But hey, since 40 years of social democracy has failed, let's keep doubling down and giving people more "free" money. ... you mean the countries with the highest quality-of-life measures? The Scandanavian nations, Canada, Australia, NZ, all of which have vibrant economies, high average wages, and strong middle classes? The US with their pathological fear of their own government is not what I'd use as a particularly…

They don't have "vibrant economies". They have strong economies, that long ago stopped being "vibrant" (by vibrant, I mean fast-developing). Europe and Canada have seen stagnant wage and economic growth since adopting social democracy. What are you basing your claim that these policies are working on? I strongly advise you to stop assuming that what you're told by the media and echo chambers on the internet is correc…

> (by vibrant, I mean fast-developing)

Nice, you take a word I introduced to the conversation, explicitly redefined it in a way I wasn't using it, and then proceed to demand I prove your new definition. Why should I bother, if you're just going to change the way I was using a word and then tell me I'm sheeple?

And since you like statistics so much, population growth, a foundational element in economic growth, also stagnated in Sweden starting in the '80s. If the population stagnates, then of course you expect growth to stagnate. So not only are you missing the point and creating a strawman, you're also being hypocritical about your own patronising demands on 'looking at the data'. Likewise this crazy expectation that human lifespans just linearly expand with improved circumstances - but what would you expect when you're citing data from a source whose raison d'etre is specifically promoting the free market? Hardly a neutral source.

But I will leave you with this: economic growth isn't everything. That's the point of quality-of-life measures. People have a high quality of life in Sweden. Whereas China has recently had a rapidly-growing economy, and life sucks there. People escape it when they can. The gradient of the growth chart doesn't tell you much about freedom of expression or the happiness of citizens.

Re: India floats the idea of a universal basic income

#157
post #112

People being able to exercise their right to freely contract and control their own private property is sickening? You'd prefer people being thrown in prison for refusing to surrender their private property rights, or for engaging in a voluntary economic interaction that some other party created a prohibition against? Please help me understand your preference for authoritarian violence against peaceful people.

>You'd prefer people being thrown in prison for refusing to surrender their private property rights

Yes, I'd prefer people be thrown in prison for refusing to feed the starving, rather than people starving to death.

I think property rights are valuable in-as-far as they improve overall utility, but insisting on enforcing them to the point where it could cause people serious harm is clearly beyond that point.

We can argue about the extents of property rights, but suggesting there be no limits is arguing for legalised economic murder.

EDIT: Just to note that I edited this quite extensively after posting.

Re: India floats the idea of a universal basic income

#158
post #156
post #143

Earlier quoted context omitted.

They don't have "vibrant economies". They have strong economies, that long ago stopped being "vibrant" (by vibrant, I mean fast-developing). Europe and Canada have seen stagnant wage and economic growth since adopting social democracy. What are you basing your claim that these policies are working on? I strongly advise you to stop assuming that what you're told by the media and echo chambers on the internet is correc…

> (by vibrant, I mean fast-developing) Nice, you take a word I introduced to the conversation, explicitly redefined it in a way I wasn't using it, and then proceed to demand I prove your new definition. Why should I bother, if you're just going to change the way I was using a word and then tell me I'm sheeple? And since you like statistics so much, population growth, a foundational element in economic growth, also st…

>Why should I bother, if you're just going to change the way I was using a word and then tell me I'm sheeple?

It doesn't really matter how you define it. What matters is that they have not improved much from the position they were at when they adopted social democracy, and the reason is because their rate of economic growth has stagnated.

The way to measure the success of a policy is to see how much a country has improved from the position it was at when it adopted the policy relative to other countries.

>And since you like statistics so much, population growth,

Gee why would anyone base their views on large-scale phenomena on statistical evidence!? Why don't I just base my ideas on what's culturally popular and which notions give me warming feelings!?

>If the population stagnates, then of course you expect growth to stagnate.

You're taking an amateur approach to this, in missing all sorts of facts to arrive at your predetermined conclusion. The fact is that per capita GDP growth has slowed, not just GDP growth. Moreover, wage growth has slowed, and wages are a per-capita measure.

>Likewise this crazy expectation that human lifespans just linearly expand with improved circumstances

There's no indication that it's a "crazy expectation". The point I was making is that there is no evidence that social democracy has actually made anything better in the countries where it has been adopted. The trends in place before the adoption of social democracy were superior to the trends that came into effect after its adoption. So there is no objective evidence to support your ideological inclinations.

>but what would you expect when you're citing data from a source whose raison d'etre is specifically promoting the free market?

There's absolutely no evidence that the source's raison d'etre is to promote the free market. It's entirely possible that they want to further public welfare, and have concluded, based on empirical evidence, that the free market is the best way to do that.

>But I will leave you with this: economic growth isn't everything. That's the point of quality-of-life measures. People have a high quality of life in Sweden. Whereas China has recently had a rapidly-growing economy, and life sucks there.

More bullshit logic indicative of an amateur approach to economics and society.

China is still extremely poor relative to the West. But people in China are FAR better off now than they were 30 years ago, and that's primarily down to the massive economic development the country has experienced. Wages growing by a factor of 4-5X is hugely important to quality of life.

Re: India floats the idea of a universal basic income

#159
post #112

People being able to exercise their right to freely contract and control their own private property is sickening? You'd prefer people being thrown in prison for refusing to surrender their private property rights, or for engaging in a voluntary economic interaction that some other party created a prohibition against? Please help me understand your preference for authoritarian violence against peaceful people.

>You'd prefer people being thrown in prison for refusing to surrender their private property rights Yes, I'd prefer people be thrown in prison for refusing to feed the starving, rather than people starving to death. I think property rights are valuable in-as-far as they improve overall utility, but insisting on enforcing them to the point where it could cause people serious harm is clearly beyond that point. We can a…

>Yes, I'd prefer people be thrown in prison for refusing to feed the starving, rather than them starving to death.

So I guess you won't complain when some self-righteous modern-day Robin Hood engages in armed robbery against you to feed children in an orphanage in Africa. And if you resist? Well, the consequences fall on you. Who are you to deny others who are in need your income.

That actions that are unconscionable by any normal moral standard suddenly become socially acceptable to endorse when done through the political process shows how detached political ideology has become from humanity/morality. The political ideology you endorse is sociopathic and narcissistic to the extreme.

Re: India floats the idea of a universal basic income

#160
post #93

Earlier quoted context omitted.

> Currently government is redistributing income upward by economic prohibitions (regulatory barriers) Forgive me for the double post, but part of a sibling comment of mine is especially relevant here: > I'm regularly floored by people's ability to talk about network effects, economies of scale, information asymmetries, moats, winner-takes-all games, and mergers/acquisitions with one breath -- all of which are non-reg…

All regulations, except on natural resources like land, should be eliminated in my opinion, as they are forceful interventions against people exercising their legitimate right to freely contract and utilise their own private property. In industries where network effects emerge, the government should fund open-source protocols that can compete with privately owned options. For example, applications built on a distribu…

Should I have the right to force someone into slavery\indentured servitude if they inadvertently sign their rights away?
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