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Why we should all have a basic income

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Re: Why we should all have a basic income

#161

Capitalism is going away, no matter what, once we have massive unemployment due to automation. You think people are just going to accept starvation? Shit will get real, real fast. And most people aren't as articulate or reasonable as the people on this site. There will be massive violence. A better way to look at UBI is that it's not about giving poor people money. Its about keeping the fabric of society together and…

"Capitalism is going away, no matter what, once we have massive unemployment due to automation"

No.

1)

The Industrial Revolution saw a considerably greater degree of automation than we are seeing now.

'Single Engines' replaced dozens of workers, some cases 100's.

Think 'weaving machine' vs. 'individual weavers'.

The 'automation' we have today is mostly 'soft' - do you think MS Word actually replaced 'Secretaries'? Or was it a confluence of things, including the fact that we now have 'Executive Assistants' which do much more than Secretaries ever did.

And what happened during the Industrial Revolution? Wages rose! Unemployment never really went down.

You know all those 'servants' in 'Downton Abbey' - the ultimately left to get higher paying jobs.

I should add - this had also a lot to do with the labour movement.

2)

The major source of 'job loss' in Industrialized countries is not 'automation' - it's 'outsourcing' to India and China.

'Automation' has been going on in a very aggressive way for over 200 years - and yet we still have fairly low levels of unemployment.

Entire new sectors have developed: entertainment, professions, services. There were 5 channels in 1950 and now 500. There weren't many pro athletes in the 1900's - now their are tons - and massive industries around them. We didn't really provide much in terms of healthcare in 1900 - now maybe 20% of the economy is healthcare. Very few used to go to University, let alone finish highschool - now education is a massive industry.

There is always 'work' that can be done so long as we can improve each others lives.

So - the question of 'UBI' comes down to how we decided to spread the surpluses. Do we give some surpluses to those who are not directly contributing?

Hint: we already do. Especially in socialized countries - we give massive subsidies to non-working people: healthcare, parks, security, all sorts of other services. Power subsidies (electricity is subsidized here in Quebec). We just don't give them spending money.

I think UBI is an interesting idea, but a dangerous one as well.

I live in Montreal, many of the people in my neighbourhood are 'artists' - photographers, actors - but really they all work full time in services.

You can get a 1/2 decent, small but respectable flat around here for $400 a month - and I don't mean grungy. It's entirely possible to live decently off $1K a month (remember healthcare is already paid for by other members of society).

I feel that with UBI - my neighbourhood would fall flat - because everyone would quit their service jobs (or work a lot less) - because they only need UBI + a little bit of extra cash - i.e. '1 day work weeks' - I think would be the preferred mode of existence for vast numbers of the young people around here. They would live a 'very low materialism' style of living, and be happy with it.

I think a 'means tested' form of UBI (not really 'Universal' ...) instead of welfare would be better.

In America - a better idea than UBI might simply be to make sure that everyone has access to healthcare, in a slightly-more-socialized way. I don't mean 'single payer' - but something. Having better healthcare for everyone would put people on a much more equal/fair footing - AND probably be good for the economy directly/indirectly. Solve that problem and you're already a huge step forward in trying to provide for better social outcomes.

Re: Why we should all have a basic income

#162

Earlier quoted context omitted.

Inflation comes from too much money chasing too few goods. How it works is different in each market. Real estate in big cities is supply-constrained but many other goods and services aren't, given time to adjust. In particular, there's little reason to believe that basic income would be bad for Walmart. They'd sell more and their workers would be better off. There's no reason for price controls and they wouldn't help…

Having an artificial force in a market economy almost always leads to unintended side effects. The inequity has to resolve itself somewhere.

There will be many effects (some positive, some negative) but I think you need to use your imagination more, and don't assume that what we have today is somehow natural.

On the margin this is increased freedom, security, and buying power for people at the bottom. How they would use it is hard to predict, but I think we can look at retirees to get some idea about which areas of the country become more popular.

Re: Why we should all have a basic income

#163

A better idea is making minimum wage match the poverty line. We already habe UBI for seniors and tbe disabled, and it works great.

Problem #1: Minimum wage locks some people out of the workforce. If you aren't disabled, but your skills don't rise the value of 2x of the minimum wage (wage + payroll taxes + benefits), then you are locked out of finding any legal work. If you start to raise the minimum wage much higher than it already is, you will start to make some forms or work and some industries economically unfeasible.

Problem #2: Disability most definitely does not "work great". If you take disability, you can be charged with a felony for every seeking work again. It is a side-track to poverty for the remainder of your life, despite the fact that you may be re-employable at some time in the future (possibly due to innovations in technology or changes in the workforce). Additionally, despite the name of the program, not everyone who accepts "disability" (SSDI) is incapable of working. After trade deals like NAFTA, there is a structural change in some industries and regions that qualifies workers in that industry (usually ones where the trade deal is expected to offshore jobs) for "disability" even though their body and mind are perfectly capable of working again. It would be better to give them a UBI-like program which doesn't dis-incentivize them to permanently leave the workforce.

We have safety nets like "Section 8" (housing vouchers), "Food stamps" (grocery vouchers), unemployment insurance (UBI-like fixed payments), but each of these is a step function. As soon as you get a job that pays above the cut-off range, you lose the benefits and can have a net loss in purchasing power. A UBI to replace these programs is superior because there would no longer be a penalty for finding a job or making above the cut-off.

Re: Why we should all have a basic income

#164

Earlier quoted context omitted.

With that logic all taxes and social policies are theft.

Correct. Personal taxes (taking things via threat of force) are theft. It does not matter who is doing the taking.

You have redefined the English language for your own propaganda purposes. This significantly degrades any chance of you being taken seriously.

Re: Why we should all have a basic income

#165
post #54

Funny how all the proponents of a Universal 'Basic' Income aren't proposing instead to make every 'Basic' item 'Free'. After all, if you believe their rhetoric, giving someone $500/mo should be the same as giving them free bread, eggs, milk, some clothes and some movie tickets. I wonder why... Maybe, the reality is that over time our 'Basic' needs increase. In certain parts of the world shoes are still considered a l…

"should be the same as giving them free bread, eggs, milk, some clothes and some movie tickets."

I wouldn't spend any of my UBI on any of those things.

Re: Why we should all have a basic income

#166
post #21

This article seems really out of touch, and anybody mentioning the 'UBI' experiment in Manitoba Canada as a success or in a positive light I can hardly trust about the experiments I haven't read about. When we Canadians did an experiment it failed!

If it's a failure, this isn't widely known. Links?

Re: Why we should all have a basic income

#167

bad idea. totally unworkable. this will create a class of dependent poor people. It will also create a working class who slaves away to provide for those who refuse to work.

There already is a class of dependent poor people. Most of them have jobs.

Not to mention the class of dependent rich people.

Re: Why we should all have a basic income

#168
Who is "we"? Who is "all"? Does this include migrants and undocumented aliens who do the dangerous jobs for low pay with no labor protections or civil rights? Or would they be excluded from the basic income? If they are excluded, and have no rights, but continue to perform the dirty jobs while the rest of "us" relax and benefit from their labor, how is that different from the system of chattel plantation slavery?

Re: Why we should all have a basic income

#169

Earlier quoted context omitted.

With that logic all taxes and social policies are theft.

Correct. Personal taxes (taking things via threat of force) are theft. It does not matter who is doing the taking.

Thank you. If my seizing my neighbor's extra car because I do not have one is theft, it is still theft if I convince a majority to pass a law take it for me. And it is enforced with the threat of (or actual) violence against my neighbor, if my neighbor refuses.

Re: Why we should all have a basic income

#170
post #47

EconTalk has a recent episode on basic income [0]. The guest is against basic income but the debate is interesting. [0] http://www.econtalk.org/archives/2017/01/michael_munger_3.ht...

My interpretation of that episode was that the guest was largely _for_ UBI, so long as it replaced many of the current safety net / welfare programs (it is simpler to administer, doesn't require large bureaucracies to verify eligibility, and doesn't dis-incentivize people from getting a job and working their way up as do disability, unemployment insurance, section 8, food stamps, etc).

My interpretation was that the host wasn't sold on the idea nor on the low estimated tax increases required to fund a UBI (IIRC the guest stated 3-10% increases in income taxes and the host speculated more like 20+%).

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