I think with basic income there is a risk that a lot of people will forever be lost for the working world. Especially if the basic income is so low that you can barely survive.
I think with basic income there is a risk that a lot of people will forever be lost for the working world. Especially if the basic income is so low that you can barely survive.
I've been on welfare here in the USA. The way it works is dependant on your income. The more you make by hard work, the less assistance you receive.
That sounds fair... Until you realize that section 8 (housing) is the same way. Food stamps are the same way. At the time, there was a cutoff for the free clinic (which counted benefits as income).. I made $100 too much.
When doing work and getting paid $1 means taking $3 in losses from assistance programs, this grinds people further into poverty. The further I try to dig out, the deeper I get until I hit the point that I can start to survive without any assistance...
It needs to be done in such a way that the total-income curve is monotonically increasing, so recipients never have a disincentive to make a little more money in their job. This should be fundamental and obvious, but because doing it requires just the tiniest bit of linear algebra, our elected representatives are not capable of it. Mind-blowing.
For example, food stamps (SNAP) were made permanent in 1964 as one of the great society programs. WIC came a few years later. I suspect - but have not researched - that you will find this is true for a lot of current welfare programs.
There may be people in power making bad decisions about administering these programs, but I don't believe they were designed to ensnare.
Actually, it mostly shows that the programs are not a system, and were designed separately from each other, with inadequate consideration of their interactions. The fact that they often have overlapping target populations and that benefit reductions due to means-testing are therefore sometimes much greater than 1:1 isn't due to problems with math, its due to the fact that the questions that were asked and which math was deployed to answer weren't even the right questions.
Really wish we'd focus less on what is fair and more on what brings the greatest outcome.
On the other hand, there exists a worry that people on such an income who couldn't find additional work would keep getting pushed around to new areas as the influx develops each cheap locale.
The ecological era "farmer" gene required a disposition in humans to feel compelled (or at least comfortable) staying put. And that gene just so happens to be common today in developed nations. But it's not for everyone, and the economics right now are very much against the nomadic personality type.
That could be mitigate to a good degree by such a small guaranteed income.
If someone wants to live in an expensive area, they need to earn their own money to pay for it. The whole point of BI is to make sure people aren't starving or homeless or in danger of that. If you can live comfortably on the BI in bumfuck, PA or KS, then that's enough for you: society has done its part in making sure you're provided for. Maybe it's not exactly where you want to live, but society has no obligation to provide for your whims. If you don't like it, get a job and make more money.
Edit: also what happens to all the people living in projects in what would otherwise be expensive areas? Ship them off to a sparsely populated non desirable area? Good luck with that
Layaway firms aren't that bad, it's the payday loan places that are bad. That can be fixed with legislation, if we stop electing crooks like Hillary and her buddy DWS who are in the pocket of the payday-loan industry.
In theory, no. A UBI is not a free pass for a luxurious lifestyle, it's a basic income. If you want more than that, you'll have to work. If you want to not work at all and sit on your ass, then sure, you can go move to Tornado Alley or frigid Minot or wherever and live cheap and make some extra cash doing odd jobs like shoveling snow maybe, and smoke pot most of the time. I don't think most people want to live that way; people are too greedy for that, and want a nicer standard of living than the bare minimum. So, people will strike a balance, like they already do: they'll look for places that are affordable, but where jobs are also located. But unlike now, they won't feel so much pressure to live where jobs are, and might take a chance moving somewhere cheaper. We'll probably see more movement to lower-cost, smaller cities, and maybe some revitalization of small towns, but overall I don't think it'll be all that huge. I would expect a lot of people to move out of the really high-rent places where they're being subsidized by government programs to stay there.
>also what happens to all the people living in projects in what would otherwise be expensive areas? Ship them off to a sparsely populated non desirable area? Good luck with that
Why not? If they can't pay the rent, they'll be evicted. Then they'll have nothing but the clothes on their backs, and their UBI check, so if they want to have a roof over their head, they'll get a bus ticket to someplace cheap. This is a good thing: they're not contributing productively to their current city of residence, and instead of draining it of taxpayer funds, and they're taking up space that could be used for more economically productive residents. If their labor is really needed there, then the business owners need to raise their wages to allow them to afford the rent there, otherwise the businesses can go under. If the place is so high-rent that all the businesses move out and all the service workers move out, no problem, it'll collapse under its own weight and then after the landlords all go bankrupt the rents will go back to sustainable levels. Trying to keep people like that in an area isn't doing anyone any favors, except those who are profiting from the situation.
Some midwestern states already offer free land+settlement programs to anybody who's willing to move in http://www.freelandks.com/availableland.html and market distortions made real estate in some US cities extremely affordable http://www.nydailynews.com/life-style/real-estate/1-buy-hous...
Yet the economic activity in those geographies leaves much to be desired.
As for Detroit, $500 houses aren't very appealing in a place with a reputation for horrible crime, and where again there's no jobs (if there were good jobs there, the houses wouldn't cost $500). But who knows, a UBI might allow a bunch of young hipsters to move into the place and try to turn it into an art colony or something.
With a UBI scheme, this can't be allowed. People on Social Security can do this because they've earned that check by paying into the system over their working years (and in reality, expats like that have more money than just a measly SS check; it's not that cheap to live in those places, especially NZ; these are middle-class and up people with IRAs). UBI is not like this: it's unearned, but it's a dividend paid to citizens in the society for being part of that society, and taking advantage of the fruits of that society (like automated production). It's also an investment: it's meant to allow citizens to be free of severe financial worry, so they can take more risks (like starting a new business), or take more time off for good mental health. Part of the bargain, however, is that they have to actually stay in the society. That UBI check they get needs to be spent in the country, where it can be circulated back into the economy, for it all to work. If they just move to Costa Rica and spend all their UBI money there, that isn't helping the American economy.
Living in central SF, or Manhattan would be unfeasible. Is that s bad thing? BI could prevent urbanization, and make small businesses blossom in smaller countryside towns.
And outside of a city you would have better opportunities to grow some food on your own, making your BI last a bit longer.
I agree that urbanization has its downsides. However, lets remember that they aren't making land anymore:) As someone who grew up on a farm, I remember looking at suburbs as they sprawled out, taking over farmland. I was thinking, what are those people going to eat? Also, my observation is that there are more small business downtown, whereas walmart has dominated rural areas. Totally anecdotal, I know.
"And outside of a city you would have better opportunities to grow some food on your own"
I imagine this must be a dream to those who grew up in cities, having a secluded house with a nice garden. I know i am living the dream with dozens of restaurants/bars/shops within walking distance! But if we take an acre of farmland, and replace it with a house, lawn, and .1 acre of garden, what happens to the food supply? Apartment buildings and urbanization have their pros.
And you don't need much space to grow some veggies.
you dont need much space to grow some veggies, true, the point I was trying to make is that replacing an acre of veggies with a house and .1 acre of veggies reduces the total supply of food(since good, farmable land is limited). Given the demand for food is rising, the impact on the price of food is somewhat predicable