Chicago creates one of the nation’s largest ‘guaranteed basic income’ programs
washingtonpost.com
washingtonpost.com
To be clear, I completely support this kind of pilot. It is essentially needs-based free $500/month for 5000 families. They need the help, so give them the money. But the only way we are going to afford a UBI-like program is to remove all the bureaucracy currently wasted to administer these programs. All so that someone doesn't accidentally get an extra $100 or is eligible despite making $1K/year more than some nonsense restriction. Instead, take those billions (across the US) and start helping people instead of paying people to make sure those who need it don't get help. We can just use previous year's taxes to figure out thresholds if it isn't truly universal with minimal overhead.
This is why I believe that UBI will never actually be implemented. That bureaucracy consists of a lot of unionized jobs, and those workers vote.
“Everybody who supports single-payer health care says, ‘Look at all this money we would be saving from insurance and paperwork.’ That represents one million, two million, three million jobs [filled by] people who are working at Blue Cross Blue Shield or Kaiser or other places. What are we doing with them? Where are we employing them?”
The overhead compared to money given to people in such programs is minimal.
Care to cite one with waste by providing the budget numbers?
Care to show any of the UBI "experiments" had less overhead than this? I cannot find any, and I checked a few. In fact, here [2] is a peer reviewed article demonstrating that the efficiency UBI proponents imagine is a myth in practice.
[1] https://www.ssa.gov/oact/STATS/admin.html
[2] https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.83...
This means expenses to provide 1.091 trillion in assistance is 0.013 trillion, so the overhead is around 1%.
In fact, they do all this for you, finding administration costs well under 1% [2] when all benefits and costs are accounted for.
Pick any program you want, do the same. Medicare, SNAP, TANF, SNAP... go ahead and show me the excessive overhead to manage these programs.
Have a citation to the contrary?
[1] https://www.ssa.gov/budget/ [2] https://www.ssa.gov/oact/STATS/admin.html
"Basic income might seem like it is a vast expansion of state power, since presumably its the government (or some quasi-state institution like a central bank) that would be creating and distributing the money, but, in fact, its the exactly the reverse. Huge sections of government and precisely, the most intrusive and obnoxious ones, since they are most deeply involved in the moral surveillance of ordinary citizens would be instantly made unnecessary and could be simply closed down. Yes, millions of minor government officials and benefit advisors like Leslie would be thrown out of their current jobs, but theyd all receive basic income too. Maybe some of them will come up with something genuinely important to do, like installing solar panels, as Leslie suggests, or discovering the cure for cancer. But it wouldn't matter if they instead formed jug bands, devoted themselves to restoring antique furniture, spelunking, translating mayan hieroglyphics, or trying to set the world record for having sex at an advanced age. Let them do what they like! Whatever they end up doing, they will almost certainly be happier than they are now, imposing sanctions on the unemployed for arriving late at cv-building seminars or checking to see if the homeless are in possession of three forms of id; and everybody else will be better off for their newfound happiness."
How optimistic. You don't think some of them are going to prepare for the next January 6th insurrection?
What happened to the near universal assessments of various conflict theories (mostly recently, those purporting to explain the emergence of Islamic extremism, 1980s-2000s) that pinned the emergence and expansion of violence on the idle hands of young men (and increasingly, as with ISIS, young women), mostly from working- and middle-class backgrounds that weren't threatened with starvation or homelessness.
Are we going to recapitulate Facebook and general techno-anarchy optimism all over again, where we deliberately ignore pathologies in contemporary human culture in favor of narratives that fit the peculiar desires and anxieties of the technocratic elite?
So let's keep them slaving away?
If you ask me, this faux anti-authoritarian obsession you've expressed is very much part of the problem. If you have a society steeped in victim culture, that believes it's oppressed by both its own historic metrics as well as contemporary international standards, what do you think will happen when you give it more rope? You think those feelings of oppression will dissipate? No, because those feelings are only very loosely tied, if they're tied at all, to objective conditions.
Paradoxically, a society very likely already must believe it's in a good place for it to actually maximize the benefit of greater wealth transfer. If the design is to use policy to nudge culture in a certain direction, then you're going to have to be very smart and incremental about it. Otherwise, as a general matter, culture usually precedes successful legal policy. Post Civil Rights-era activism seems to have convinced Americans it works the other way around, but it doesn't.
Moreover, this fear of social unrest because of this new social media craze/new-woke extremism and closed-mindedness of other views is a middle-class thing. Poor people can't afford to waste their time arguing on social media/protesting/going deeper down the rabbit hole. Even if it were moral to oppose UBI on such grounds, I do not believe it is an actual issue that would get worse because of UBI.
EDIT: Or I guess it might, by making these people middle class/giving them too much time. I still think this is immoral and not grounds on which a democratic society should oppose policies.
Just as a matter of principle, was it more moral to depose Saddam Hussein and give Iraqis their "freedom" even though it resulted in hundreds of thousands of deaths and untold atrocities, including inducing the Syrian civil war and the rise of ISIS? Was it possible to have deposed Saddam by force while giving Iraq and the surrounding region a soft landing? (I tend to think anything is possible, so the better question is how likely was it that anybody could have threaded that needle?)
The point I'm trying to make here is that "nation building" isn't a straightforward endeavor. Domestic social welfare policies are fundamentally that--nation building. Advocates on both the left and right even use the same lexicon--oppression, freedom, etc. Most people who have lived through the past 20 years understand that in the context of foreign policy the line from A (worse social situation) to B (better social situation) is most definitely not a straight line, it can't be decreed even if you throw money at it, and things can easily go sideways. Yet for domestic policies that hard earned lesson (which sadly had to be re-learned in the foreign policy context with blood for the umpteenth time) is completely ignored.
Cultures aren't static things. Therein lie numerous dilemmas and paradoxes. It's sort of like voting--why vote when your individual vote doesn't count? The answer is that your vote counts if you (and enough people in your community) believe it counts. Social change doesn't proceed in a linear, mechanical fashion, to say the least. Rather, the most important buttons that need to be pressed are often the ones that seem the least relevant or obvious--sometimes the consequence you're attempting to achieve (e.g. some deep sense of social equity) is actually a necessary prerequisite for the change you're attempting to enact (e.g. massive transfers of wealth, a lower GINI coefficient).
I don't see basic income programs being nearly as effective as people expect them to be unless they're preceded by or simultaneous with other, deeper changes in social expectations and national identity. I mean, we have several examples of countries with far more comprehensive programs. Iran had a basic income. Several extraordinarily rich Middle Eastern countries basically throw money at their citizenry to quell political discontent, and do so as regular stipends or pensions that people very much come to rely upon. Indeed, throwing money at people regardless of need has historically been the preserve of authoritarian regimes. Do we really think these polities are stronger for having these programs? If they're not stronger, what liberties did those payments actually buy those people that directly providing basic necessities according to need couldn't have provided, except perhaps a moderately more efficient program (ignoring fraud, even though fraud tends to be a function of pre-existing social cohesiveness).
Japan achieved a degree of social cohesiveness and professed life happiness that was the envy of the world. In many ways it still is the envy of the world even in its degraded state. And it was entirely based on guaranteed employment, not guaranteed payments. As guaranteed employment disappears, they're learning that it's very difficult to buy their way back to that situation. Is the loss of employment cause or consequence of the malaise? IMO, what Japan enjoyed had little to do with employment or income, per se, but with how people related to the society--not just what they received, but their ability to fulfill their well-defined social obligations. And that sense of purpose preceded the social contract of employment. Note that until recently Japan didn't have a large class of exorbitantly wealthy people; people in that position willingly forewent larger salaries for several generations.
Today we like to look at Scandinavian countries for models of social development. But arguably the fundamental dynamics behind their success are similar to those in Japan. Compare the Law of Jante with it's counterpart(s) in Japan, which we like to cynically express in the proverb. "the nail that sticks up gets hammered." Notice how these basic principles of civic life have nothing to do with one's freedom to disengage from society and pursue your own personal interests, yet by everybody adopting them those freedoms may be more fully realized than in societies who profess them as their primary goal.
At heart I'm still an anarchist. I have faith that humanity can boundlessly increase wealth and equity while also deconstructing systems of violence. It's just a very long, arduous process which will require alot of non-obvious twists and turns. And I suspect that what replaces external violence may very well be some of the seemingly "oppressive" norms for which modern (especially Anglo-American) cultures often criticize Japan and some other countries. Even modern American culture tends to see 1950s-era American culture as hopelessly oppressive, even when stripped of caricatured prejudice--actual racial and class oppression was much worse than the popular narratives describe, partly because people today can't even fathom it--without appreciating that that unity of purpose (however "unfair") is what made possible the Civil Rights Acts of the 1960s wherein privileged classes relinquished much of their privilege in a manner we haven't seen since.
“I believe that this instinct to perpetuate useless work is, at bottom, simply fear of the mob. The mob (the thought runs) are such low animals that they would be dangerous if they had leisure; it is safer to keep them too busy to think.”
—George Orwell, Down and Out in Paris and London
I feel like the only really humane thing to do is to have a livable wage as a floor. But also it seems like we will need a new type of high-tech money to make that work.
No need to further empower the private central bank.