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Universal basic income to be tested in Wales

bbc.co.uk

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Re: Universal basic income to be tested in Wales

#281
post #266

Earlier quoted context omitted.

Yes, there is a huge sentiment among the conservative public in the UK that people should not use benefits to gain capital or for social mobility. This isn't just a policy issue, it does come along with a commonly held attitude.

Can there be social mobility that is independent of social social status, or does "social mobility" have a literal definition where if someone gains social status someone else must by definition be lower on the social ladder. If one follows that definition it seems not too strange logic that social support should go towards those at the bottom of the social ladder, and if you change the social ordering then who recei…

Yes it's a left vs right issue here. This interpretation will seem very biased, since I am very left wing, but it really is this way:

The left see benefits or welfare as a right, and as a very important way to help people who have found themselves in difficult situations. Here in the UK, left wing people often view those on benefits as victims of their situation or upbringing. They do not think of them as of low social status.

The right see benefits or welfare as just a necessary evil to prevent mass death. Here in the UK, right wing people often view those on benefits as leeches and criminals, who have made the choice to be ineffective at achieving and maintaining a high enough income. They think of them as of low social status.

Sweden is very differently politically to a lot of countries, at least I've heard you have far less party politics. The UK is absurdly polarised on these issues.

For your cancer treatment thing, that's not how it works here in the UK at all. While we do have universal healthcare, unfortunately it varies drastically based on where you live, and if you live in a poorer area, you are much more likely to get overwhelmed and struggling hospitals. So really a hospital in a richer area will give totally different care to one in a poorer area.

Re: Universal basic income to be tested in Wales

#282
post #86

In practice the UK already pays the price for a universal basic income. Most poor people get some sort of tax credit and/or housing benefit. What we don't do is allow people to use it to rise out of poverty. A disabled lady thought saving some of her disability was the responsible thing to do, despite further impoverishing herself, once she built up some savings she was prosecuted for fraudently claiming benefits whi…

What is outrageous if that the UK prevents you from getting any benefit of you have any savings. It's basically encouraging you to not save any money.

This is not true. The new universal credit rules allow you a certain amount of savings.

A member of my family has just been on universal credit due to the pandemic impacting her work sector, and they still gave her benefits even with her having savings, it's slightly adjusted down, but she still got payments.

Re: Universal basic income to be tested in Wales

#283

Earlier quoted context omitted.

What do we do when automation reaches most jobs? Create artificial jobs to keep people busy? Now that I think about it, that seems to be what we have been doing for some 30-40 years now. By artificial jobs, I mean jobs that if they disappeared, life would go on pretty much the same. This was in fact quite visible during all the lock-downs. Many many people no longer worked and all the essential and many non-essential…

I imagine this is an uncomfortable thought for many people on HN. How many folks are essentially creating CRUD apps of dubious value all day long and lying to themselves that what they provide is of great value to society simply because it is compensated well? IMO modern society can easily support the needs (and wants, for that matter) of ourselves with just a fraction of the workers we have. So we create busywork fo…

>How many folks are essentially creating CRUD apps of dubious value all day long and lying to themselves that what they provide is of great value to society simply because it is compensated well?

Well, I thought about it, my employer wants a CRUD app but is it really necessary? Is there no other way to do it? I mean, if they had to pay Silicon Valley wages it would not be very easy to justify paying that much, so it boils down to why the employer wants the CRUD app, not how much you are being paid.

Well, the first potential reason would be that it is 100% superfluous and the employer is just following a CRUD app trend and doesn't want to miss out. I somehow doubt that this is the case but things are never black and white. In this case the wage is arbitrarily high or low.

The second potential reason is that the CRUD app is replacing an alternative, presumably the problem the CRUD app is solving has to be solved and if it is not done via a CRUD app it would be done manually by office workers. The CRUD app therefore saves my employer the cost of hiring more data entry people for example. I find this to be likely. I can crank out 3 CRUD apps per year. Assuming all three CRUD apps combined increase productivity enough to cut one data entry job (technically they were never hired in the first place) and the app is good for 3 years that means I can charge up to 3 years of salary for one year of work. The benefit to society is that people don't have to waste their life on trivial problems.

The third potential reason is that the CRUD app is the only way to solve the problem, essentially the CRUD app lets us solve a problem that is otherwise impossible to solve. In this case compensation depends entirely on how much income solving the problem brings in and thus my wage is bounded by that income. In this case the wage could be arbitrary as well but it would be tied to solving a problem. I consider this a significant driver of wages in Silicon Valley but the CRUD apps I am writing are not in this category. The benefit to society is that the problem has been solved at all.

Re: Universal basic income to be tested in Wales

#284

There are already studies on effects of UBI: https://philip.greenspun.com/blog/2016/11/30/long-term-effects-of-short-term-free-cash-guaranteed-minimum-income-experiments/

Clickable link: https://philip.greenspun.com/blog/2016/11/30/long-term-effec...

Re: Universal basic income to be tested in Wales

#285

Earlier quoted context omitted.

Although there's much we likely agree on (as you can see downthread), I downvoted this comment due to your use of "Democrat party" as an epithet. I think there's room for substantive conversations about these policies that cross partisan boundaries, but epithets are going to work against that. Even if you mean "Democratic politicians" and not "Democratic voters," that's not necessarily how Democratic voters are going…

See, this would be a reasonable point of view if only we weren't currently seeing far more strident rhetoric coming from the other side, routinely accusing Republicans, white folks, those who care about traditional values, etc. etc. of furthering "racism and white supremacy". This kind of divisiveness does far more in practice to "reduc[e] the chance of communicating effectively across party lines" than a mere quip (…

The people you're referring to are also engaging in partisan battles. As you can probably tell, it's not very convincing to those on the opposite side (yours, in this case). I agree, it's divisive. It's why I try not to do so whenever there's a chance that I might change someone's mind.

Quip or not, it frames the conversation in partisan terms, and people on the other side are going to check out if you do that. I'm not defending partisan warfare, but being divisive in response isn't going to contribute to making the conversation any less divisive.

I can't stop you, obviously, but realize that you're doing your own position a disservice by making it less likely that people will listen.

Or, if you like, think of it this way: the country is divided about equally politically. You only need to sway a small portion of people to win an election. If you can engage with like-minded people who lean the other way but the opposing party can't, you're likely to win consistently. Don't you want to win? (Democrats, you take note too.)

Re: Universal basic income to be tested in Wales

#286

In practice the UK already pays the price for a universal basic income. Most poor people get some sort of tax credit and/or housing benefit. What we don't do is allow people to use it to rise out of poverty. A disabled lady thought saving some of her disability was the responsible thing to do, despite further impoverishing herself, once she built up some savings she was prosecuted for fraudently claiming benefits whi…

What you describe very clearly isn't universal. One of the major selling points of UBI is that it never disincentivizes recipients from earning, saving or investing in their futures.

A negative income tax would achieve the same goal without giving money to people that dont need it.

Re: Universal basic income to be tested in Wales

#287

Earlier quoted context omitted.

Yes but that way of splitting would very quickly destroy for the very very obvious reason - no money must be given to children... And dividing by adults, say over-15s, it's 70T per 257M, $272K per adult or $1044 per month for that family of 4 with 2 adults in it... That hardly solves any questions. And you can't divide all of it, because it means destroying capitalism, taking the bottom out of society. Only a small f…

> $272k per adult or $1044 per month for that family of 4 with 2 adults in it Something fishy about your math here. $272k per adult is $544k per family. If you paid it over one year that's $45k per month. Edit: oh, I see, you are only giving people the interest on the capital and assuming a growth rate of ~2%. Both of which seem quite silly to me, but whatever.

But we spoke about possibility of creation of sustainable income for everyone, not a one-off money grab? Not a growth rate, but yes, dividends rate - because growth in capital itself will go into inflation, population growth, and growth of living standards, so yeah, 2.3% is all we can realistically plan for.

And then the big question is: how is this society different from Soviet Union? Literally, i am not exaggerating: an economy where capital is, by law, owned only by the government, and private ownership of means of production is a felony (or how else you will take all capital away)? Or if you want to literally give shares to individuals, not to some immense state fund which will do the redistribution job, what will prevent these people from drinking and gambling these shares away? If American rich will be robbed off all their money so they won't be able to buy, to the Chinese rich (they will be able to afford as people will be running to sell off - if they were attracted by 2.3% returns they'd be buying stock now as it is, only reason why they don't is that they don't see it as attractive - so they WILL sell - and stock will be dirt cheap)

It all sounds like a way to kill capitalism, or sell it off to foreigners...

Re: Universal basic income to be tested in Wales

#288

Earlier quoted context omitted.

Right, so you are looking at the pie and seeing a redistribution, and going "this is all equal". The key you are missing is that this fixes the incentives. Currently NIMBY's(No in my back yard) say no to new housing so that their home prices appreciate in values. Currently companies buy empty lots and leave them empty for 30 years. What happens when you have a UBI funded through a LVT? Well, exclusivity drives market…

Yeah I'm not quite seeing how the pie gets bigger. You have a UBI at the cost of massive wealth destruction in the housing market. How does LVT favor dense housing? And why would people be building more now that they don't expect the price of homes to ever increase? I'm not seeing how the scenario you've outlined is the most likely to happen.

>You have a UBI at the cost of massive wealth destruction in the housing market.

Have you played monopoly? It's literally like that. It's a board game where if you land on a square with a house owned by another player you have to pay "rent" but technically it's a tax because landing on a square that is not owned by a player costs you nothing. In other words, owning the house essentially gives you the right to "rob someone at daylight", you're forcibly taking money from someone else and the money manifests itself as the appreciation of your house.

I'm not talking about rent paid to a landlord here, I'm talking about the value that has been forcibly extracted by sitting on the land, i.e. by denying a more productive use of the land. If you live and work near a neighborhood and that neighborhood's land value goes up then a portion of that rise was taken from your own hard work.

Therefore a correction of land prices via LVT is not wealth destruction, because the wealth was not generated by the land, it was generated by people living near the plot of land (they don't even have to live on that plot). What happens is that people get to keep their existing wealth instead of being forced to give it away to a land owner.

>How does LVT favor dense housing?

A LVT is entirely based on the land value of the plot. If you build a duplex, then the tax burden on each unit is half as much vs a single family home. Suburbs have lower land values, which means building single family homes there is viable. Cities have higher land values, which means building apartments will reduce the high tax burden significantly.

>And why would people be building more now that they don't expect the price of homes to ever increase?

If you overpay for land, then you have less money available for building a house. If you want more rental income, you must build more units.

Compare this to classical land value extraction, where you can sit on the land and let it go up in value without building anything. You should rather ask how the latter encourages construction since it offers a secondary income stream that has nothing to do with building housing.

>Yeah I'm not quite seeing how the pie gets bigger.

Land prices are often high because of proximity to employers. If someone builds a single family home on that plot, then that person is essentially denying other people the ability to live near those employers. As mentioned above, the LVT would allocate the land in a way that increases the number of people that get access to these employers, which means more people can have higher incomes.

Re: Universal basic income to be tested in Wales

#289

Earlier quoted context omitted.

> “work should be optional and the basics of life should be provided for all [via the work of others]” The answers to this are: provocative: work is already optional for holders of large capital - if it works for them, why not the rest of us? humanitarian: everyone deserves decency (and we have enough to go around) utopian: we are/will be rich in everything we need, so we do not need to work for basics - we will only…

It's not up to you to decide what to do with other people's money. Feel free to donate all your money to the poor who deserve better; if you will use threat of violence to get someone else money (no matter the cause) I'll call you immoral.

I'm not deciding what to do with other peoples money and I am not threatening anyone with violence.

We decide these things together through the democratic process.

I know it is hard for people like you, who reject democracy and any kind of power anyone could have over them, it must feel terrible to not be able to escape a system you disagree with. But I also think that on the spectrum of systems we had, it is not really fair so scream "taxation is theft" and "social security is immoral" at democracy, if you consider what we had before.

Re: Universal basic income to be tested in Wales

#290

Earlier quoted context omitted.

The idea of LVT is that it replaces some of your taxes. So you're paying the same as you would on a mortgage (except it would be less, because land use would be more efficient) but saving on what used to be your tax bill. And, sure, you can't really "pay it off" but that's true of any tax. This would also shift quite a bit of savings towards more productive endeavors than opportunistically betting on the future appre…

But if it's replacing my taxes then it can't be used to fund a UBI. I guess I could be open to such a tax but only if I thought I would be able to sell my home before the massive price deflation. It seems like implementation of such a tax would have huge negative economic implications in the short term. Imagine taking out a mortgage on a property, then LVT is implemented and now your home is only worth 50% or less of…

That's true but that's one of the fundamental problems with land ownership. The government sells the land while it is cheap, now it has no control over land usage anymore, it cannot do anything to fix the problem unless it repossesses the land at the current market value (or at least enough to pay the mortgage).

There are some workarounds, one could grant the property a tax discount equivalent to the assessed market value or pay zero tax for 20 years and then introduce the LVT. However, this would run into a different problem in the short term. The government would not receive property taxes for 20 years, at that point, outright buying the land would be a more appealing option because it is far less complicated.

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