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Replacing welfare payments with “basic income” for all is alluring, but expensive

economist.com

31–40 of 131 posts

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#31

I haven't really made up my mind about Basic Income, but one thing I never heard advocates of Basic Income talk about is that incentives matter to human behavior. BI will tax people who work more and give handouts to those who don't. This disincentivizes working and incentivizes not working. For example, the increasing numbers of people on Social Security Disability Insurance seems like a similar phenomenon and is no…

You are right, but only because most BI supporters advocate too high an income. Keep the equivalent down around a part-time min wage job, and it would do wonders for the economy with little disincentive.

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#32
A generous basic income funded by very high taxes would be self-defeating, as it would reintroduce the sort of distortions that many of its advocates hope to banish from the welfare system. Loafers could live comfortably without lifting a finger.

Basically, if there is not enough jobs for everyone - the raison d'etre of the basic income - then at some point, some aren't going to do anything: that's the point.

In other terms, the basic income is all about how do deal with the people which does nothing since we have reasons to think they couldn't do anything anyway according to the situation.

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#33
I am going to tell a story about the state I live in: Maine.

We have many programs: HUD (to help pay rent), Food Stamps, HEAP (fuel/electricity assistance), and others.

All of these have complex forms to fill out, and offices filled with staff that don't actually understand the complex rules, and the rules seem to change all the time.

Hiring these people costs money. Due to the complexity of the rules and forms, many families that qualify for these programs do not apply for them due to the frustration they cause, and when you're poor you only have a limited amount of frustration before you curl up and cry yourself to sleep every night.

Many consider just getting any aid from the state a full time job in of itself.

Not only that, programs like food stamps issue a card, the maintenance of these cards is probably not cheap as they outsource it to some company out of state. The minimum you can get on food stamps here is $15/mo (which helps absolutely no one, I'm sorry, but $15/mo could be a day's worth of food for a couple with a kid); what is the actual cost of doing that $15/mo? I read somewhere that a quarter of a million households qualify for food stamps in Maine, how much are money are we losing administering a program like this that has such little benefit? Could we be feeding another few thousand households with that waste?

I've been advocating a basic income program for years purely because of the efficiency of it. Once people no longer have to worry about where their next meal is, or their wife's next meal, or their kids's next meal, or if they will have a roof over their head tomorrow, or will their car be stolen, I mean, repoed by the bank tomorrow, they can actually focus on being gainfully employed, or go back to school, or just not be a fucking wreck.

I live in Maine. I suspect we are the poorest and most forgotten about state in the great experiment that is our nation. A program like this would create all the jobs we don't have, would end the constant bullshit people here have to deal with, and probably save lives as well.

Life here is so bleak that, as a non-alcoholic, people have assumed that I mean that I'm just in AA, and quit drinking. "No," I tell them, "I really don't drink. Never have." They look at me like I have two heads.

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#35

Here's some of my ideas: 1. CEO pay cap @ 20x(or some other similarly reasonable #) of the median salary of the employees. Median salary is 30k ? So I can only earn 600k ? Screw that, I'm going to get everyone closer to 75k, that'll put me at 1.5 mill, that's way better - and everyone profits. 2. Flat but fluid Nationwide Sales Tax (would mean anyone visiting, or staying illegally has to pay taxes -- way better than…

What is really going to happen:

1) let me fire a bunch of low income workers, this causes the media and average to go up + stock options go up. Oh actually let me take the entire thing in stock options. Also now I work for 1 company that exclusively owns the other companies and only have one other employee who makes millions.

2) I rent everything or move to a different country

3) Same

4) Mother of 3 starved to death because government lost her address notification - read all about it in the news.

5) Only idiots want to run for the Senate.. Oh never mind

6) This will probably work, but I wonder if it will do enough to offset the cost?

7) You want to further incentivize companies to move out of the country?

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#36

Earlier quoted context omitted.

'Need public housing? Not if you set a high enough basic income level.' If everyone's income were increased, might not prices for things like housing go up as well, so some people could still be priced out?

Yes. But the presence of a large group with a consistent fixed income would incentivize the building of large-scale low cost apartments - those don't exist currently outside of major cities (where 'low cost' is substantially higher), because the demand isn't there.

There is no shortage of incentive for that in most of western Europe - such property is significantly profitable. The reason why not much gets built is because (a) cheap housing blocks results in ghettoisation, which most governments try to prevent with mixed-dwelling planning requirements, and (b) local residents invariably object to any planning request for housing more low-income people near them.

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#37
post #7

Probably as expensive as giving the homeless free housing... which has repeatedly shown to be cheaper than not

If you believe that deeply in that idea, then turn it into a startup. Put your own money into it and I'm sure you'll see truly interesting results!

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#38
Unvoiced assumption #1: working is good. Corollary: Not working is bad. Unvoiced assumption #2: anyone who wants a job can get one.

We know that #2 is false. Coupling the assumptions together produces a group of people who are considered to be bad for reasons that are entirely beyond their control.

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#39
In the relatively near-term future it will be literally impossible to employ more than half of the population in nearly full-time positions that produce a net gain for their being filled. At that point there are essentially two choices - let some people not work, or let everybody work less. (There's actually a third choice that will probably be the default - make-work for all, so that we can be kept too busy to effect change).

The latter sounds more fair, but is inherently less efficient - specialization means that for every doctor to work half as much, we have to train twice as many doctors for the same amount of 'product' (the practicing of medicine).

The math in this article seems to also have inexplicably paired 'basic income' with 'flat tax' - while I'm sure there are plenty of people who would like both, those two systems are completely separate, and there's no good reason not to consider the effects in isolation rather than together.

Re: Replacing welfare payments with “basic income” for all is alluring, but expensive

#40

I am going to tell a story about the state I live in: Maine. We have many programs: HUD (to help pay rent), Food Stamps, HEAP (fuel/electricity assistance), and others. All of these have complex forms to fill out, and offices filled with staff that don't actually understand the complex rules, and the rules seem to change all the time. Hiring these people costs money. Due to the complexity of the rules and forms, many…

I have never heard someone talk about Maine as bleak. Seems like most people who live there or are from there love it. Are you really saying poverty in Maine eclipses the Deep South?
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