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A universal income is not such a silly idea

timharford.com

261–270 of 337 posts

Re: A universal income is not such a silly idea

#261

Earlier quoted context omitted.

so did the parent, and everyone else in this thread.

... and this is why, selfishly, I would like to see the system implemented somewhere, albeit not necessarily where I live. People keep throwing peremptory statements here and there (on both sides of the argument), even though we really have no way to know what's going to happen. So let the Swiss implement it, and let the whole world see how it's gonna play out. If it works (which I sincerely hope, from the bottom of…

There have been a few trials of related things on a small scale. Certainly nothing approaching the amounts or number of people in the Swiss proposal.

Some instances here:

http://en.wikipedia.org/wiki/Negative_income_tax#Implementat...

Re: A universal income is not such a silly idea

#262

Earlier quoted context omitted.

so did the parent, and everyone else in this thread.

... and this is why, selfishly, I would like to see the system implemented somewhere, albeit not necessarily where I live. People keep throwing peremptory statements here and there (on both sides of the argument), even though we really have no way to know what's going to happen. So let the Swiss implement it, and let the whole world see how it's gonna play out. If it works (which I sincerely hope, from the bottom of…

It's always refreshing to find someone who wants a good debate to be settled by experiment. Hopefully that would be enough. Portugal famously had great success with decriminalization of nearly all illicit drugs, but unfortunately I don't think too many countries have changed their own laws as a result. There's almost always too much politics involved, and it's usually easy to find a reason that is at least superficially convincing as to why what works elsewhere will not work at home.

Re: A universal income is not such a silly idea

#263
post #80
post #56

Earlier quoted context omitted.

I agree, for this to work, everyone would have to receive that amount of money. Or at least say, everyone receiving under $100,000 a year in salary. Otherwise, you might feel cheated if you replace your $12,000 free money for a $20,000 job . You'd still have to receive the free money, so you'd then earn $32,000 a year.

I would hate to be the person who earns just over that arbitrary 100k line.

> I would hate to be the person who earns just over that arbitrary 100k line.

Yeah, that would be terrible. How could one survive?

Re: A universal income is not such a silly idea

#264
post #177

Earlier quoted context omitted.

Your reasoning is severely flawed. Nobody today wants to accept an income below what you need to survive because..you need to survive. Liberals don't want to see other people accepting an income below what is needed for them to survive in a way that we can accept, so pass rules about a minimum wage. With this proposal, there is wage that it too low. As long as you make enough to afford something nice that you want th…

Not that original intent should in any way be binding, but it's an interesting cultural shift that "single mom who, while working, and paying child care, makes less than on welfare" is now a reason why welfare is bad, when "mothers shouldn't be working" was part of what motivated welfare in the first place.

This reminds me of the old paradox that a man who marries his maid is reducing GDP, because when she was the maid she would cook and clean and he would pay her enough to support her as a business transaction, but as husband and wife, she still cooks and cleans and he still supports her but it's not a business transaction anymore.

Likewise, a mother who goes to work and spends her whole paycheck on child care increases GDP, but if she just stays home and cares for the child herself, it doesn't count because it's not a business transaction.

Re: A universal income is not such a silly idea

#265
post #120
post #102

Earlier quoted context omitted.

I understand the confusion, but its mostly there thanks to misconception about how things works now, > If you would like more than this, you can go and get a job and hopefully earn more (have a better lifestyle) than staying at home not working. Staying home and not working today is not actually an option in most places in the world. The reason is why this new model is called unconditional basic income. The current s…

The problem with making it unconditional is that it will completely break the ceteris paribus calculations as to what is good enough, making a lot of collateral damage on its way while being largely ineffective. Showering money to everybody is very likely to make more harm than good to real people's economies. A transition to Friedman's proposal on a "moderate" negative income tax (it's not what the name suggests) ma…

I wrote on this a while back (http://neltnerb.tumblr.com/post/58818804903/an-entrepreneurs...), and it is useful to note that mathematically a guaranteed income is completely identical to a negative income tax.

https://en.wikipedia.org/wiki/Negative_income_tax

That article contains a lot more information than most articles about stipends. Note that the US Earned Income Credit is a negative income tax, yet it doesn't seem to even make a blip on anyone's radar as communism.

Re: A universal income is not such a silly idea

#266
post #66

Earlier quoted context omitted.

It's already worse than that. There are many products which have a smaller size of that's more expensive than the larger size because the smaller one is WIC-approved. There's targeted price-gouging for people who are forced by the government to buy specific products. There are also ridiculous loopholes. People buy soda and milk with returnable bottles, walk outside, pour it out, return the bottles for cash, and buy a…

Who cares? The government pays for WIC, so the only people being defrauded in this circumstance are the government. There's no "price gouging" involved here; WIC recipients get a voucher that pays full price for the items on the voucher, no matter what they are or how much that is.

The point is it's a real-life example of what your parent believes will happen if basic income is implemented.

Re: A universal income is not such a silly idea

#267

The thing I genuinely don't understand regarding the basic income for all argument is that surely it just moves the goal posts rather than solves the problem at hand? In the current system, you can go stay at home and get income support, which should provide you with the basics i.e. a home, food, electricity etc. If you would like more than this, you can go and get a job and hopefully earn more (have a better lifesty…

As a huge believer in unconditional income, let me address your whole comment:

> The thing I genuinely don't understand regarding the basic income for all argument is that surely it just moves the goal posts rather than solves the problem at hand?

I agree, but I see it as a good first step towards getting rid of the plague that is (savage) capitalism.

> In the current system, you can go stay at home and get income support, which should provide you with the basics i.e. a home, food, electricity etc. If you would like more than this, you can go and get a job and hopefully earn more (have a better lifestyle) than staying at home not working.

The problem is that a lot of minimum wage employees are treated with minimum respect since they really are forced to be there. This way of thinking makes everyone miserable by not considering the quality of life of those concerned. And I'm just talking about "not being verbally abused" here basically, not even "have a nice kitchen". And there aren't enough public employees to ensure people don't get treated like shit.

> This therefore means there is an incentive to go work. There is also control, to make sure the money the unemployed person is getting is mostly spent on the basics (such as housing, rather than say drugs).

See, I disagree that the state should have such moral authority. But more to the point, this provides an incentive to the state to disregard basic needs (thereby reducing "needed" money) and pretend everyone has the same basic needs (thereby giving more people an arbitrary minimum). Also, people are still currently buying drugs/alcohol with their state money, because at the end of the day addiction will often win over food, and that's not a problem you solve by giving people less money (who will only starve more and/or commit more crimes).

> The problem with suddenly giving everyone a minimum amount of money, is that due to everyone now 'at least' having that amount of money at hand, this becomes the new 'bottom' of the market. If I get a job, I earn money on top of this basic amount, which means I can afford nice things and the person unemployed still can't afford anything.

That's on purpose. That's why it's not a communist scheme. But don't forget that food and house prices are/can be mostly controlled by the state, so it can make sure that everyone gets the real basics (as it already tries to do).

> If let's hypothetically say, you gave everyone in Vietnam this basic wage, the cost of beer would not remain at 14 pence. The first reason is because the work force would find their existing pay negligible compared to the basic pay (so wages would have to rise to be incentive to work on top of basic pay) which would in turn cause cost of manufacturing to rise, but also the market would realise with this extra money available - the price could be set higher and would rise accordingly.

That's also on purpose. One of the points is that everyone gets to be treated in a non-shitty manner, which means everything is going to cost more to produce, which means the middle class and above will be poorer on average, all things considered. I count that as a good thing (reducing income gap). However we're not talking about Vietnam (or China or Taiwan), because the powers that be would not allow the world factories to fuck up their way of life. This program only makes sense in first world countries, if we're aiming for things staying the same.

> Now back in the UK if this was to occur, you would have slight price rises due to these factors which would in affect move the poverty line up higher, which would mean the people at the bottom are still poor relatively.

Right. But more people would be able to not work under terrible conditions.

> What's worse is that assuming the people who are unemployed are given the choice on how that money is spent, they may in fact not spend the money sensibly (i.e. on their housing) and end up homeless instead.

That doesn't really make sense, since people need an address now to receive welfare, and I see no reason for this to change. If you're homeless you have a whole new set of problems, which would not be addressed by the measure afaik.

> The final problem with this model is that the cost of living and economic output is not evenly distributed throughout a country. £1750 a month in northern England may give you a fantastic lifestyle, where as in London you'd barely cover your rent. (What happens to the unemployed in London in a fixed give everyone a basic income situation? They have to leave London and move where they can afford, which then makes it potentially harder to find a job and splits the country into two halves, the elite / the poor).

This is a problem and needs to be addressed. I don't really think people on welfare can currently afford to live in London anyway (correct me if I'm wrong), so it doesn't really change anything.

All in all, remember that no one wants to have a shit life and be homeless. So if you give people money, they're likely to use that money to get a better/steady life rather than fucking up their life. There will be people who "mooch" on the system, but there already are. This is about working conditions and the right to be treated fairly (and to left-wingers like me, the right not to work).

Re: A universal income is not such a silly idea

#268
post #78

Earlier quoted context omitted.

> The system is broken, but the equality of pay and living standards is not to blame with the government, it's to blame with greedy corporations, share holders insisting they need to do anything for profit and wages being pinned down to the minimum they can be that the work force will stand for (to maximise profits). Let me ask you something... If you start a new business, and let's say you take out a huge loan to pa…

> Corporations pay market value for wages, to increase wages you need to either increase the number of jobs, or decrease the number of workers. To a large degree the market value for wages is such only because of a government subsidy to the employers. Take Wal-Mart for example, they go as far as helping their employees enroll in all sorts of government poverty programs because even though they are full-time workers t…

The government isn't subsidizing Wal-Mart; Wal-Mart is subsidizing the government by reducing these people's dependence on government benefits from 100% to something less.

Re: A universal income is not such a silly idea

#269

Earlier quoted context omitted.

How is it not welfare in your estimations? It's nearly the dictionary definition of welfare. Why would it negatively impact the value of the currency and how is that any different than the current state of welfare (where only some people receive it)?

Because welfare, being given to only a small percentage of the population, can be funded out of taxes from the much larger pool of people not receiving welfare. But if everyone were suddenly on welfare, the system would quickly run out of money. We would then have to print more money.

We would then have to print more money.

You seem to be under the impression that this is not being done already. That impression would be wrong. The treasury creates trillions of new dollars every year.

Re: A universal income is not such a silly idea

#270
post #66

Earlier quoted context omitted.

It's already worse than that. There are many products which have a smaller size of that's more expensive than the larger size because the smaller one is WIC-approved. There's targeted price-gouging for people who are forced by the government to buy specific products. There are also ridiculous loopholes. People buy soda and milk with returnable bottles, walk outside, pour it out, return the bottles for cash, and buy a…

Really? You sound like a snopes advertisement. I believe the most generous glass bottle return is 10c, can return 5c, and that would be down at a recycling center. A six pack of crap beer is $5, meaning you would need to buy 50 bottles or 100 cans, pour them all out, take them to a recycling center and back (bus fair) and then buy some beer. I doubt this happens consistently at grocery stores.

In CA, that's basically the scenario.

In MI, can deposit is 10c, and many grocery stores have returns in the back.

The situation described still seems unlikely to be tremendously common, but is more feasible than your reasoning would suggest.

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