Basic income would not reduce people’s willingness to work
universiteitleiden.nl
universiteitleiden.nl
In this experiment, what amount was given to the treatment group that received basic income? How often? How does that amount compare to the cost of living in their city?
> ‘It’s sometimes said that people will sit around doing nothing if you give them free money.’
I’m not an academic, so take this with a grain of salt.
If my job requires menial labor or involves getting berated by customers (many retail jobs), personally I would absolutely not work.
My spouse worked for the state government as part of a benefits/disbursement program. She took phone calls from benefits recipients. Some who are disabled, on unemployment, or generally within the states bar to qualify for tax payer aid.
The pay was slightly above minimum wage. My spouse quit after about a year, during which my souse constantly suffered from verbal abuse and even callers who didn’t qualify threatening to murder my spouse unless they received cash from the state.
My point is - there are plenty of jobs where you absolutely will quit and not work if the basic income can provide a sufficient substitute.
I’m not making an argument against basic income. I suppose it’s sad that we as a society treat a significant number of people, even in developed countries, without a shred of dignity.
One of the problems of those studies are that they are temporal, and everyone involved know it. If I enrole you for two years in an UBI experiment, you'll probably not leave your job, even if you hate it. But if I guarantee you the same income for the rest of your life... well, lets take a look at how many people keep their jobs, and specially their boring/shitty jobs, when they win a huge lottery price. Usually they don't do other productive things, or even other improductive things: they tend to destroy their own lifes.
Another problem is that you have to take into account how slowly people internalize the new situations. E.g. when central banks started to use inflation as a source of government income, in the first decades it was "free". But people adapted and started to track inflation and price indexes to peg the salaries to them, "learning" how to live with the new situation.
enrolling in a study is not at all representative of how people would behave if the same were a permanent
I've been following the UBI space for a long time and I've never seen anyone use this as an example - that's just a strawman. What people discuss is the work that is valuable to society but is unpaid such as raising children, caretaking for the elderly, community support, and so on.
A few hundred dollars a month isn't enough to live on, but it moves the needle for those most at-risk for going hungry or becoming homeless. And for everyone else, it gives extra breathing room and negotiating power in the workplace.
What you talk about is not UBI, but other schema of basic income conditioned (thus not fulfilling the U).
And so what if people refuse to do shitty jobs? Perhaps we as society can do without those jobs. And if we can't, we should value them more
I don't honestly know why whether or not people will work even factors into one's support for UBI. Some people will keep working, some people won't. Nobody will starve so that seems like something in the "pro" column at least.
I'm not trying to be dismissive, but this strikes me as a "but some people will be upset!" argument, which seems irrelevant to whether the policy achieves its stated goals or not.
And for the record, I would appear to be in the group bankrolling it rather than receiving from it, and I'm completely cool with it.
Being a programmer, what I earned is a result of several factors - most importantly investments made into me by my parents and by the society (with schools, infrastructure etc. mostly funded with taxes); and also plenty of pure luck and sheer coincidence. Only afterwards comes a lot of hard work I've put into learning what I know. Without the former, I would probably earn only a small fraction of that (and/or under much worse conditions) even assuming that I'd be putting the same amount of hard work. Alternatively, with more dumb luck I could be earning much more while putting less work into achieving that. Of course, this is just barely scratching the surface, as there are also other ways to get rich than working hard or being lucky; mere ability to invest your time and effort into "working hard" is often filled with external factors as well; and "being (un)lucky" itself contains so many factors to consider that I wouldn't even know where to start.
You’re talking to one. I have no degree, am self taught and a software engineer. The most help I got was reading open source code, which was pretty difficult to do when I started. My parents had no money for school for me, and I joined the military to try to get some education. That still wasn’t enough to actually get a degree so I had to work low paying jobs knowing I could do better while working side projects to improve my skill. I just recently caught up to what I should be making.
It’s common for those that took the standard path to think nobody works for what they got.
I don't even have a degree, by the way; I'm mostly self-taught too.
I knew you were going to fixate on that, as you’re grasping at straws, which is why I put it in there. The amount of source code I read was one project, a php web framework. Yea I learned about 2 things from it back then, which I’ve long forgotten now.
Since I didn’t earn what I have, call your school, revoke your degree, quit your job and start over again with only unskilled jobs on your resume. Until you do that you won’t understand.
I already said that I don't even have a degree. All you did in this thread was proving the point of my original comment.
They do. I learned a lot thanks to them.
> What you’re saying is essentially that your degree was free.
My degree that does not exist?
Since you’re still not following, why do people post blog articles? Why do people write research papers? Just to get the info out there? No, they do it because it gives them some advantage over others. FAANGs won’t hire you without proof of knowledge. The other side of it is SEO. You want to exist on google you have to look like an expert, so you write a lot of articles to increase your score. Both of these situations are driven by money, not by some desire to help others.
> My degree that does not exist?
Fine, then you’re essentially saying that all the learning you did was free for you. It required no effort at all, all you had to do was read. If your self taught, or went to school, you know this is just dumb.
So back to the point, did you or did you not work for the knowledge you have? Or did it just get matrixed into you?
I've learned a lot from pseudonymous or even anonymous people with no money or fame involved. And helped others this way too.
> Fine, then you’re essentially saying that all the learning you did was free for you. It required no effort at all, all you had to do was read.
That's not what I'm saying at all and you would have known that if you would read what I wrote with comprehension. It took a lot of effort, but I recognize that this effort alone is just a single factor that influenced what I earn, and not even the most important one. Other factors outside of my control could have easily ruined (or boosted) it all, and it's true for everyone.
What it too to get mine, required very hard work and literally signing my life away for 4 years. Then, when I started gaining, I got fined for not having health insurance. Now that I can comfortably afford my health insurance and am starting to look at buying a house, here’s the left again saying I should help others, when I received no such help, and taking away the money I worked hard to earn. Imagine not having a degree in the software engineering field. The struggle is real, and if I can do it then what are others excuses?
No, I’m sorry, I will fight to force others to follow my path (albeit in a different field should they choose). I will not willingly pay for others to have an easy life unless they are related to me.
Also I’m a Navy veteran. I can’t tell you how many times I can back from deployment to see actual hatred from these people I had never met, who I was defending their freedom for. The idea of helping others is gone after 1) I already did by defending their freedom and 2) most people here are assholes only thinking of themselves, so i joined them.
I haven't "got mine" yet and tend to disagree when people propose to lock me out of upper-middle class lifestyle by taxing the hell out of my income. It is more like people like you who "got theirs" want to pull the ladder up.
Not trying to be an ass but the so what attitude does not tend to further constructive discussion.
What a weird claim. Decisions in democracies upset some people too. That's the whole point of voting on things, to resolve conflicts.
> If you support this idea then feel free to donate to the cause.
Donate to what?
> Not trying to be an ass but the so what attitude does not tend to further constructive discussion.
"Some people will complain" isn't constructive by itself either.
It doesn’t resolve the conflict, one side is just forced to accept something they don’t want. The hatred, and therefore the division, builds regardless.
If all the work was automated/outsourced those people would still make the same money.
These are the people who ostensibly will pay for UBI and automation/outsources is one of the cases for UBI.
of course it's not at the same rate as GDP (5x vs 1.5x for personal income).
If a minority of voters are dependent on the UBI and a majority decides that they do not like the system, or a politician persuades them so, they will vote against it. ("Working your ass off on lazy strangers" is a huge boon for populist politicians.)
If a majority of voters depends on the UBI and a minority is compelled to provide it to them, they basically have no recourse but to emigrate. At which point you lose their tax money, unless you impose draconic measures on emigration.
Which nation is that?
Otherwise, I can simply point out that many almost all the countries with single-payer health care are still plenty enough peopled to be able to pay for it and don't have to have any draconian policies against leaving. As I understand it, even residing outside of them often exempts you completely from taxation, which even the 'can't afford single-payer!' US doesn't do.
Imagine something as simple as burger flipping became completely automated. There would be a million fast food workers suddenly unemployed. Add making espresso to the mix and half a million baristas lose their job.
There won't be a million new jobs created to maintain the automation to pick up the slack.
No, it replaced large number of medium and low skilled jobs too. Before industrial revolution, more labor hours were spent on working distaff and spindle than probably any other single job. Industrial revolution reduced number of spinning jobs to roughly zero. The same happened to many other low skilled jobs, like weaving, mining, digging, and many more.
Due to the massively the increased efficiency the industrial revolution created many many of them low skilled new jobs which couldn't have existed earlier. An average person in the 19th century probably consumed significantly more textile and other manufactured products than someone in the prior centuries. However in the beginning this increase in efficiency led to large decrease in incomes due to the surplus in labour and in part because efficiency increases in agriculture were trailing behind other areas. E.g. an unskilled worker in the UK could only purchase about 60% of the amount of bread in ~1800 compared to what he could in 1750 (real earnings only started to grow significantly between 1850 and 1875.
Modern automation on the other hand seems to mostly just replaced many low and medium paying jobs with a smaller number of high paying ones.
> Modern automation on the other hand seems to mostly just replaced many low and medium paying jobs with a smaller number of high paying ones.
Modern automation created so much prosperity that we now have significant portions of the population doing things that 19th century people would scarcely call "jobs" -- Tyler Cowen, an economist, collects many of those on his blog, see https://marginalrevolution.com/?s=new+service+sector+jobs . Additionally, many jobs that would be recognizable to them are now done by greatly increased number of people. Consider, for example, a job of university administrator: as such, this job would make sense to 19th century people. However, the idea that university employs more administrative than research or teaching staff would seem rather ludicrous to them. The reason we can do it is that the productive sector of the economy creates so much surplus, that we can through regulation, taxation, and social custom funnel so much of it to people doing jobs that are not by any means crucial to the functioning or prosperity of the society.
No, it won't. It might be the best way forward but it's not the only option. You could:
1. Give people free housing and food
2. Allow people to work other jobs, even if they're marginally as productive as automation (sweeping the floors, picking up trash, etc)
3. UBI
4. Give people welfare/foodstamps as we currently do in many countries
Both of these are completely automated already.
https://newsexaminer.net/food/mcdonalds-to-open-restaurant-r...
I can’t find a link for the espresso machine but many FAANGs have the ones you can place orders through a website then go to the lounge to pick it up.
If you're paying large numbers to do nothing, the value of that money plummets and people will starve.
Recall: 50% of the country make less than the median wage... UBI is going to have to be way below this to preserve the very wealth which UBI redistributes
I expect that UBI could start off very small and still have huge impact. A quick search shows that median income can range from ~40k-80k state to state. I'd bet you could radically change this country for way less than that.
We already pay large numbers of people to do nothing, retirees.
Absolutely not. Having a large fraction of population being unemployed is not good but this is not the point of UBI. Also, this is completely disconnected from inflation/deflation.
Furthermore, deflation and "people will starve" are very much disconnected. Many countries devalued their money on purpose to be more competitive on international markets.
There are many stages between "people will starve" and having access to high quality food (and high QOL in general). For example if UBI is sufficiently high to allow most people currently employed in the food and service industries to not work (or to invest their time into gaining new skills etc.) I think a massive increase in food prices is unavoidable, at least in the short term until automation catches up. While basic foodstuffs would still remain affordable to all/most (the government would be forced to subsidize them if not), eating out and high quality, labor intensive products would likely become unaffordable to most people.
No I'm not.
> so export plummets, which will bring down the value of the $
No, if anything, it's the very opposite.
How?
The trillions of dollars printed by the Federal Reserve in the past two years beg to differ.
Honestly, if the country is going into deficit, you might as well give it directly to people instead of injecting it via financial institutes.
Society in general may greatly benefit from having people not HAVING to work.
What if we printed the same amount and gave it directly to people? the $6T/year could yield ~$40K to each of the ~150M working-age Americans.
The biggest impact is to give employees more power in the negotiation with employers: currently, employees are far more pressed to find work than the employer needs to fill in a position (if the employee fails to pay rent, they are evicted; if an employer fails to meet a deadline, nothing happens immediately), and have the inherent disadvantage of having orders of magnitude more employees than employers.
UBI will help the public by reducing the pressure on employees to find job, thus improving the negotiation power and conditions for all other employees. Even the slight help during COVID created the best conditions for working people in decades. Seems to be worth the inflation IMO.
those trillions were swapped, not given, to the financial institutes, in return for the bonds and treasuries they held.
It isn't the same sort of printing that you hear about in Zimbabwe or Venezuela.
If the gov't really printed trillions and gave them to people like you described, you'd get major inflation. Oh wait, that's already happening...and it's only a couple thousand for some people, and it's not printed, it's borrowed. Imagine the effects, if it was truly printed like you described!
The inflation we’re experiencing now wants to have a word with you.
Some things will become expensive. Some might be balanced. Construction cost will increase, but land value may decrease (since there is no necessity to crowd in job hubs).
Taxis and Uber will probably increase as people are not forced to work at all costs, but people might find this trade-off favorable: unemployment is far more painful than having to take the bus.
And everyone could still work to afford expensive things, if they chose so. They will also have much better working conditions, since they will have much more negotiation power.
The "so what" is that basic income doesn't change the ordinal ranking of how much people prefer to do different jobs. Neither does it change people's ability to get those jobs. Better qualified applicants will always have better options. So while basic income might increase the nominal pay of the least preferable jobs, it wouldn't mean you suddenly get to skip over the "shitty jobs" and suddenly get access to the better ones.
Want to “work” as a golfer? Cool, enjoy living on UBI because no one will be topping up your salary for that. The person who cuts the greens earns wayyyy more than you though. Want to play lots of golf? You’re going to run out of UBI to pay for all those greens fees. Maybe you need to think about taking on a side gig in a comfortable back office worker role (salary $1k/year), or a refuse collector (salary $130k/year).
Why? Golfing is a poor example because you can already lose money trying to be a pro. Or, you could become world famous and make millions. What's more is that you don't need to be "hired" to become a golfer.
When we talk about jobs that firms pay salaries to fill, then I don't see why the supply of those jobs would change, whether they're enjoyable or horrible. Since the supply would still be in the same ratio as before basic income, I'd think that doctors would still make more than the hospital janitors, even though the janitors would make more than before on a nominal basis.
Are you not underestimating just how radical a change UBI would be? You’re going to radically change which jobs are viable.
For example, if you pay every teacher UBI, is it a stretch to imagine more than half decide not to go into work tomorrow? It’s not just a case of paying teachers more when they can afford to say no to your job. You’re talking about completely changing the role.
There’s going to be zero room for unruly kids in that classroom. Suddenly the teacher flips from being one of the least powerful professions to being up there with doctors and lawyers (im aware in some societies this is already the case but not in the US).
How come multiple times now people point out UBI as being a way to deal with the entitled people running around right now? And with more entitlements we’ll have more of an issue with entitled people.
With more money in some cases and less in others. Entitlements, that’s far too broad an umbrella.
What exactly would you be entitled to beyond sufficient money to make a basic living and pursue the free pleasures in life (which are generally among the best available in life).
What’s more fulfilling, spending $130k to ride the vomit comet for a couple of hours - i say this as someone who would LOVE to do that - or hiking to the top of a local mountain with a loved one to watch a sunrise? Vomit comet is COOL but it’s not fulfilling. Not in the meaningful way that time spent with a loved one enjoying the beauty of life is.
But back to the entitlements - why is a teacher going to agree to teach an unruly kid? They don’t need this job. They’re here because it’s a passion in life, they’ve chosen a career not of necessity but of interest.
You missed my point, the kid is unruly because of the entitled attitudes running around this country. If you pay people UBI, it doesn’t fix this, it exacerbates it. Fix the entitled attitude by making people earn what they get instead of handing it to them and maybe we’ll fix that attitude and not have to destroy our economy?
If you're behaving in an entitled way, and you're told - i'm sorry you're not welcome here. Having sufficient dollars is not enough for entry to my classroom - then what's the problem with them continuing to be entitled off on their own elsewhere?
When society is no longer driven by profit, then other forms of exchange become relatively more important again. It'd be no bad thing if basic decency to other humans was a requirement to access services you'd like to consume.
>> Fix the entitled attitude by making people earn what they get instead of handing it to them and maybe we’ll fix that attitude
If this idea were true, it would have happened already.
And this requires giving everybody money instead of just fixing the entitled attitudes by kicking them out of your store? Why are we choosing the most expensive path?
> If this idea were true, it would have happened already.
Because we have actually addressed the entitlement and not fed it right?
Why are there no golfers? If everyone has basic needs met, shelter, basic food, healthcare, you’re telling me no one is going to make use of some time to go play some golf? Why?
>> why are the groundskeepers making so much?
Golf courses dont magic out of thin air, ubi can do a lot but it’s not magic. You’re going to have to pay someone enough that they choose to specialise then take on that career. They’re going to need capital for equipment etc etc but there’s a lot of people would like to play golf. A golf club won’t look anything like those of today though. Ubi would have such a drastic change in society given sufficient time that perhaps even the game of golf itself would change.
I explained why, read it again. And golf is not a basic need, it’s entertainment. Which in hard times nobody pays for. You’re gonna choose golf over eating?
>> You’re gonna choose golf over eating?
Why?
I can’t wait to see the GDP “growth” charts…
E.g. instead of “grow” - which is inherently unsustainable, you run out of materials and labour to feed the economy - i mean we can continue to kick the can down the road for a few generations yet and pretend we don’t understand what “grow” means in the context of finite resources. Instead of “shrink” which is also unsustainable. Is there some other viable point?
The reason most currencies are worth anything are because you get thrown in jail if you fail to pay tax levied upon you denominated in that currency.
But you can basically only get rid of them by automating the process and disconnecting human workers from complaintants. How well does it work?
Ask anyone who lost a YouTube channel without learning the real reasons and has no path to appeal to a human. HN hates whenever this happens.
And we may have a long discussion about "how to engineer software so that it doesn't need as much support". Theoretically, it can be done; practically, we have all been astonished by Ways of the Common User that no one anticipated, plus you always hit the problem with diversity of hardware.
Apple seems to be pretty user friendly, but Apple products are expensive to boot and Apple does not support their OS on non-Apple hardware.
Maybe there is a financial limit of compensation after which dealing with them stops being a problem - I would certainly personally tolerate an onslaught of assholes for a million dollar salary, at least for a few years - but that limit of compensation may be unrealistic to reach.
I am not sure how an utopia where people stop being assholes to one another could be achieved.
You can postulate about how much we should value these jobs, but the reality is that most people wouldn't be able to afford a meal at a restaurant where all the staff make 50k, or a packet of strawberries picked by pickers who make the same.
There’d still be footballers - the person who was picking fruit left that role to follow their UBI funded dream of being a footballer. They’re just not going to make the same amount of money.
Same goes for CEOs and other roles with comparatively enjoyable execution vs high pay. Every man and their granny will be a CEO of a one person company when you take all the risk out of the system by giving everyone a safety net.
Enjoyable jobs will pay less, hard jobs will pay more.
CEOs aren't paid a lot because the assume risk, they're paid a lot because business leadership is hard, and good leaders are scarce. I also don't know of many CEOs at large companies whose job I would classify as "enjoyable".
> Every man and their granny will be a CEO of a one person company
Then we'll need a new word for "company" as it's meant today. Also no one is stopping anyone from being an independent contractor, which is basically this. I'm not sure I'm following.
Already ahead of you: a one-person company is called a ZZP'er here in NL. ZZP = zelfstandige zonder personeel == self-employed without employees.
A UBI would be more efficient than the extensive patch-work of policies and regulations that we use today to artificially redistribute income. There would be a lot more work happening on material things, not less - especially when adjusted for productivity. Minimum wage work today is some of the least productive.
Who will do all the hard, unpleasant work then? Who will pick strawberries, work retail, or do hard labour, for anything less than a fortune? What substitute to the current "don't starve/end up homeless" incentive structure will motivate people to do these jobs?
Productivity improvements aren't universal, they're specific. We've not improved productivity for strawberry pickers because we've not come up with a way to automate the picking of strawberries. The least productive work tends to pay minimum wage.
That’s an easy yes.
The people who are currently not able to make ends meet are suddenly succeeding. So not everyone is poorer.
You’re confusing “things will be vastly different” - which is not disputed. The richest today will be relatively less rich.
Anarchist capitalism is probably the closest as far as i can see so far.
How are you quantifying this success? If people have "more money" but are suddenly unable to afford things they previously could (those same strawberries), wouldn't they be worse off?
> The richest today will be relatively less rich.
Isn't this just communism with extra steps? Why do you think these things have always worked out poorly, economically speaking, triggering runaway inflation and material scarcity?
My thesis is that the the threat of abject poverty is the only thing keeping much of our economy functioning. If we remove this threat, then the economy shrinks significantly and we all end up in poverty anyways.
By the lack of:
>> threat of abject poverty
>> Isn't this just communism
Where would a planned economy come in?
Surely UBI results in something more like an-cap? You collect your ubi payment in exchange for agreeing to live in the area serviced by the United States corporation.
UBI wouldn’t be a small tweak around the edges of the current system. It’d be fairly radical.
By redistributing the amount of money in question, you are effectively planning the economy. You are writing into law the idea that everyone should be able to afford to eat, with no means to contend with the fact that there may not be enough food.
I don't think you're addressing my core thesis. When I worked in a restaurant, I did it to maintain myself - to pay primarily for rent and food. My coworkers were much the same. If I was provided these things, I wouldn't have applied at the restaurant. Multiply this by every tedious or difficult job and you'll find that many of them just wouldn't get done. People will avoid them, and pursue other fields. This sort of thing has actually happened in places like the USSR. Loads of highly educated, trained specialists, talented (or not) artists, shortages of farmers and labourers. Breadlines.
(see in broad lines eg. US North (machines) vs South (slavery) in first half of 19th century)
If you increase the minimum wage by 10x, well... quite some low wage work wouldn't actually cost 10x a single person's wage to automate. Depending on the nature of the good or service, the price might go up a bit at first to recover development costs, and later it might go down drastically once those costs are recovered.
This is highly speculative, and almost certainly false. The requisite developments in chemistry and metallurgy were nowhere close to realized during classical antiquity.
> quite some low wage work wouldn't actually cost 10x a single person's wage to automate
What about the rest of it?
For example, the Netherlands started out industrializing on wind power using wood and rope and cloth, ...actually they still use a lot of wind power today, though now with exotic composites. (At some point in between there were traditional windmills that were still being updated with odd things like aviation leading edge slats made of aluminium up to something like the 1950s! )
So -while speculative and certainly open to discussion- in some alternate history Romans could have had some sort of industrial system, though it might not look like something we would immediately recognize.
I'm trying to convey the intuition that if you have a perfectly workable society based on slavery (the cheapest form of labor), you don't have as strong an incentive to start using machines instead. Conversely, I have the impression that the abolition of slavery in the 19th century is one of the big contributors to our modern industrial society.
I'm just being cautious wrt saying that most low wage work wouldn't cost 10x to automate. One can never be sure one hasn't missed an example somewhere.
Of course, if we find some examples of low wage work that really do cost more than 10X the cost of the work needed to automate it, possibly we've been under-valuing those tasks all along.
Emerging global trade networks incentivized producers to scale up indefinitely. The resulting innovations transformed the textile industry. Textiles are always in demand, and their non-mechanized production is extremely labour intensive. The lessons learned from mechanizing this industry were applied everywhere else. It's true that competition with cheap Indian labour was a major factor in textile automation in the UK, but these global trade networks could not have been sustained without massive advancements in stellar navigation provided by the invention of the telescope. This in turn was only made possible by advancements in chemistry that enabled the production of clear glass.
All of these processes were well underway before the abolition of slavery in the US. It should be noted that innovations such as the cotton gin were eagerly adopted by the slave-powered US cotton industry. There's nothing like efficiency for an industrialist.
With regards to automation, I think all of the low-hanging fruit has been picked. We're left with things that seem simple, but are in fact horribly difficult, and require near-human levels of dexterity and situational awareness, such as driving or construction work or food handling. That however doesn't mean that our society would be just fine if we provided workers in these industries an alternative to their jobs.
WRT windmills, don't take my word for it.
If we increased the minimum wage 10x and somehow that policy was binding, there would be a whole lot of involuntary unemployment, workers' overall income would plummet and we would have a deep economic depression. But there's nothing that suggests such effects from an economically viable UBI. Such an UBI would barely be enough for subsistence, possibly not even that, so people would still choose to work if only to acquire some disposable income. For every single thing that 'ceased to be done' because of increased expenses, there would be growing employment in some other, higher-productivity sector.
(In fact, I would argue that high-paying manufacturing jobs have always required some degree of skill, even when this kind of manufacturing work was especially common in the West.)
The ones I've met are intelligent, though their locus of intelligence is in their thumbs. Someone on a project needs to have it there, so that's just fine by me!
Last time I did a robot project, the people who would ultimately be the machine operators were involved every step of the way, learning and building together with the team.
I'm not sure how installing a handful of machines in one small corner of a huge factory that's already full of machines would somehow change someone's entire life. Hopefully it does make it a little easier though!
I have never worked in robotics, save for hobby drones and hexapods. The question is not whether we would enjoy it, it’s whether someone else will. You seem very convinced that you should decide what people do for work. That’s the part I’m trying to get across to you, you should not have that power for anybody but yourself.
I don't think that I've ever decided what people do for work. I unsure if that that is a thing. As far as I (can/do) know, they decide internally and then hire me to help.
I'm not sure how to proceed. Could you unpack your assumptions for me?
This is not my experience at all. I once had a job setting up home PCs and internet for low income people in my community. Almost every single home had a projection TV (the top of the line at the time) and a recent mercedes in the driveway. They’re able to afford these things because they are actually receiving income, it’s just not reported (and therefore also not taxed)
Everyone’s a drug dealer? Doesnt sound plausible. Or at least They’re getting so much income they can afford to run a fancy car (debt free because who’s lending to a person with minimal documented income).
I mean is that a poor person when they have $50k laying around to go buy a fancy car outright?
Something about your proposition doesnt add up in a really basic obvious way.
Where did I say drug dealer? Or is this the first time you’ve heard of jobs getting paid under the table?
And yes some of them had much more than $50k judging by their things. But hey, make them more wealthy. Some people are really good at gaming the system.
Pay for waiters and labourers, like pay for everyone else, is on top of UBI. There's no particular reason it would have to rise by 2x or 3x—unless the industry is categorically unwilling or unable to ensure that their workers are treated well enough that they just don't see it as being worthwhile for less.
If the industry is dying out because we introduce universal basic income, then the poorest people will still be at least as well off as they are now, and in many cases much better, because they are guaranteed to continue to be able to pay their bills, no matter what happens with their employment status.
> guaranteed to continue to be able to pay their bills
This all depends on how well your UBI keeps up with inflation. If you trigger runaway inflation, then you won't be able to buy bread with a wheelbarrow full of cash. Fundamentally, it's not about how much money people have, but about how much work they do. If UBI reduces the amount of work done overall in the economy, it will contract said economy and make everyone poorer as a result.
Well, sure. That's more or less a given, but it's also an implementation detail, not a problem with UBI as a concept.
Another study discussed here showed only a mild net reduction in amount of paid work being done on the short term; and arguably the unpaid work being done instead was also beneficial to society.
Interestingly, in general, UBI studies don't show really alarming reductions in amount of work done. Sadly they also don't show hoped for amazing increases in productivity either. It seems like the advantages and disadvantages of UBI for stimulating work seem to balance each other out. I think people's arguments don't need to be about the work aspect so much.
UBI is basically communism lite - with all its flaws. People who are provided for tend to behave just like animals who are provided for - after all, people are animals - they mainly lounge around and try to amuse themselves. This isn't a moral judgement, just an observation. I've not seen any study that has conclusively refuted this.
It is the rare, exceptional, person that will spend their free time on something truly productive and constructive. We can see examples of this already - we've made it very easy to get a loan and go to college, partially socializing college education. As a result, we have a surplus of college graduates and a shortage of labourers and trades. Introducing UBI would simply magnify this effect. When people have alternatives, they don't tend to want to go work on farms, construction sites, or in restaurants or shops. People work these jobs primarily because they would otherwise be destitute. I know that's why I did.
Since HN discussions tend to be short and fleeting; I think the point to focus down on would be "free time". Just because you take (some of the) money out of the picture, doesn't mean that there still isn't a lot of work to be done. And it doesn't mean that all the other motivators to do that work aren't still present.
Instead of or in addition to money: people work for power, prestige, recognition; but also for love, honor, duty, "FOR SCIENCE", beauty, tradition, for personal satisfaction&improvement, and many other reasons.
With all these different reasons to want to work, and all kinds of different people and professions, (eg. politicians, artists, homemakers, soldiers, police officers, doctors, nurses, scientists, students, artists ), you might imagine that taking money off the table might not actually have such an influence on these people's desire to work.
If you think back, surely you'll recognize these motivations showing up everywhere; including in stories, newspapers, citations, history books, holy books, and surely even scientific studies. They're all part of the human condition, after all.
The examples you give of farming, construction, hospitality and retail are often mixed motivation. Some people (like you?) only work in those jobs because they need the money. And without further motivation, then surely one won't like the work.
But many people who work in these sectors actually do so because they believe in their job, because they want to build something, and/or because they see it is valued and helps the community. When they are down and demotivated, this is where they draw their strength to carry on.
This is especially true in SME's, which is where I've had a lot of my experiences.
Overall, I don't think the "human condition" is much of a thing. People are marginally more clever than apes on average, and that small margin pushed us past a tipping point into civilization. Give a chimp a smartphone and they start to behave remarkably like people (or is it vice versa).
However, even if you're right, and most people would find humanistic motivation to work, my point is that we just can't have all the people who do menial, necessary, jobs pursue careers motivated by higher values. If all baristas were suddenly free to pursue their dream art careers, who will pour the coffee?
More in general: I think that Maslow's hierarchy of needs [1] has a quite a lot of levels between "basic physiological needs" and "transcendence". I think that as long as people need to fulfill needs anywhere on that ladder, they'll be willing to do work. If people are lucky and/or smart, a lot of their needs will be immediately fulfilled by their work; other times things may still need to be covered by money and/or free time.
I think it'd be strange if people would only have boolean motivation (either 100% staying alive, or 100% enlightenment). I think in real world people, it's often going to be some mix of motivations, with all sorts of levels in between. Sometimes more towards one side, sometimes more towards the other.
So that's my theory anyway.
Here's some examples of anecdata I have:
* An electrical technician I met at $factory. Possibly they'd work somewhere else if not for money, but on the other hand they do get a kick anytime a machine they fixed starts working again.
* An industrial programmer who got to play with $MM worth of robots and computers and lasers. They outright forgot to bill me and needed to be reminded. (oops)
* An awesome Barista who made coffee into an art form indeed; A lot of deep knowledge and skill and creativity went into it. They charged me about 2-4x what it would cost out of a machine, but it was worth it!
[1] https://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs
> very few kids say they want to stay at home and sit on the couch all day
You will notice however that, in absence of intervention, most kids do sit on the couch all day, especially in the digital age. We also observe that this behavior continues as long as it is materially supported. Countless articles have been written about the increasing numbers of seemingly-functional adults who live under the care of their parents and don't do very much at all. UBI will enable more people to adopt this lifestyle, to become starving (read: non-productive) artists, man-children or hikikomori. Why don't you think they'll take the opportunity?
> people would only have boolean motivation
I agree that it's not a binary motivation. In aggregate however the point stands, removing x% of motivation for work will inevitably result in x% less work being done. Furthermore, any decrease in x represents wealth transfer from those who are motivated to work by higher values to those who are motivated to work by lower ones (in Maslow's hierarchy). All of this raises many moral questions, and I think these are fundamentally worth discussing.
Note: I do appreciate your continued replies =)
The only way an industry "can't survive" is if there is no price for their product/service at which both of these are true:
1) People can afford to pay for it
2) The employees can afford a living wage
If an industry is vital to our modern way of life, but it fails to meet those criteria, there's a third option: government subsidies, ensuring that the price can stay affordable while not shortchanging the employees.
However, as critical as I generally am of market-based solutions, in this case I genuinely believe that at least in the vast majority of cases, the second-order effects of the safety net offered by UBI will not require additional government subsidies for any vital industries. Some things may get more expensive, but overall, life will get better.
I can clean the walkway, or toilets.. granted i don't spend my whole month on it with shoddy equipement.
Your point still stands for the professions for which abuse is part of the job by definition. However, I get the idea that too many industries are tolerating it while it could go away by having a culture change.
Another reason why one could argue it’s not the same as willingness to work is because if one is willing to work a job where abuse isn’t really common then you could say that person does have a willingness to work.
I think there would be a massive pressure to raise minimum wage.
Why would you work for $7.50 an hour and pay $1 in taxes - spending the majority of your day to make ~$50 - that doesn't buy much - and you don't have much time to spend it anyway?
When your options are either do that or be homeless and hungry - most people opt for work.
But when you have other options - spending your entire day to make $50 seems dramatically less appealing.
Also, I think many menial jobs could be made a lot more pleasant with only a slight cut in productivity.
Hurray for qualify of life!
And since after UBI every dollar after taxes goes to luxuries, a low income provides a lot more luxuries than it does before UBI, so it's actually a lot more appealing to work -- you see the benefits directly.
Why wouldn't regular minimum wage workers just be homeless and spend their money on luxuries if this was the case?
What use is buying the new video game if you don't have a place to put a TV to play it on?
Then people start advocating for universal housing and universal food.
Food: Foods are commodities, meaning that the price is the marginal cost. The price of a bushel of rice is set by the buyer, not the seller.
Which is exactly what has happened (in the US at least) as people received mini-UBI called "stimulus checks" and their bosses got PPP "loans" (that didn't need to be paid back)
People will bid up apartments because they have more money.
UBI would be a subsidy to landlords and supermarkets; who would cream off a profit.
Not to excuse bad behavior, but one of the arguments for UBI is that it could help streamline the convoluted systems of government benefits; under a simpler basic-income system perhaps those callers would be fewer and less angry.
That implies your job currently doesn’t require those things. Does it mean you would continue to do the work you currently do?
I think a better phrasing to the hypothetical might be: “if my current job requires…”. And sure, you would leave that job, but does that mean you wouldn’t work at all?
Or does it mean you might use that free space to learn the skills to do a different job that wouldn’t treat you like such garbage.
It almost sounds like your conclusion is: “such a program would allow workers to reject abusive workplaces, and require management to ensure people didn’t abuse their workers if they would want any workers”. To which I say, don’t threaten me with a good time.
Maybe that's a good thing. It's insane how people in service industries are treated - like they're less than human. Shifting some power to them and giving the job a little more of an air of dignity or status would probably help a lot.
And the pay would obviously go up. People would be willing to do the job if it means life or death, but not for minimum wage - and that's a good thing.
Maybe. Many jobs can be automated, but it was cheaper to just hire minimum wage people to do a job. If the pay required to find people got to be too high, automation would happen more rapidly.
Private property can coexist with government supplied housing for instance.
In the "capitalist" USA a lot of the military industrial complex lives off government handouts. Why not the people too? The cakes and cookies we should earn ourselves, the meat and potatoes (and housing) should be a right for every citizen
Maybe we should leave terms like capitalism and socialism out of the discussion because no one can agree on their meanings so they just become fighting words and their usefulness to the conversations are less than meaningless.
Really, you'd just want to tax corporations over a certain size that are both highly automated (i.e. high revenue per employee), and have lopsided compensation structures (which could be measured by CEO to median worker pay). If a company successfully automates a bunch of jobs, and then makes that money rain equally on all their remaining employees, I'd have no problem with it. I only think they should be taxed if they try to distribute those gains exclusively to the executives and shareholders.
why would the remaining employees, who have no invested capital into the business (with which the automation is driven by), receive any of the gains from said automation?
The people who invested the capital into the automation reaps the profit. In this case, it's often the shareholders in the end.
Yes, that's how it works today. That's not how I'd like it to work.
Many people here get a significant portion of their compensation via RSUs, ESPPs, and other profit-sharing initiatives, and any company that decides to extend these benefits to lower level workers should be treated favourably by the tax system.
I started working my freshman year in high school in 2008 as a busboy at a local restaurant making $4.50/hr + tips from the servers working that night. I couldn't even drive yet so I pocketed most of that money and was grateful for the opportunity. (This ultimately allowed me to build my first PC and I allowed me to get into programming.)
I moved from there to another local restaurant with a similar job title, but quickly moved up into working in the kitchen as a line cook. I think I made $8 or $9/hr when I got the "promotion". After graduation I wandered around some and eventually ended up as an asst. manager at a Burger King.
Now, over a decade later, I can sometimes look back nostalgically at my time in food service, but I don't know that I would ever go back, for any amount of money.
The things I am nostalgic for are structure, a defined start/end time, and being able to leave work at work. The pay was awful, the people were generally nice enough, but there's always a rude customer at some point or a manager with a power trip. I don't miss waking up at 5am to man the drive-thru, or going home after midnight smelling like grease.
If I woke up tomorrow with no qualifications to write software, I would sooner go into a back breaking trade than go back to retail.
I think we will see automation really start to take over these retail spaces in 2022. In my city (Dallas), pretty much every single fast food restaurant has mobile ordering or a kiosk available. My local Kroger expanded their self checkout lines and after 10pm, there are no more manned checkouts open. I've frequently had to scan and bag a full cart of groceries using self checkout (which sucks).
The past two years have opened up a lot of time for these giant corps to invest in R&D as the labor pool shrinks. Through the perfect storm of chip shortages and labor shortages, we haven't seen a large scale roll out, but I'm confident it's coming as soon as parts and installers are available.
Full time WFH since significantly before covid, it's B2B so even though I'm nominally on call, that's just a nice chunk of extra pay for maybe 1-2 calls a year. I do work hard when required, but it's not as required any longer, so I end up with a lot of free time when there are no issues to solve and I use that to go the extra mile to keep my customers happy.
You haven't really debugged things until your tests involve forklifts and 10t cranes. O:-)
Fortunately people are working to make that kind of thing less necessary (though it can't be eliminated completely of course; someone still needs to watch and maintain the machines).
Though that said, I remember not too long ago a lot of people saying "oh if minimum wage goes over $15 we'll just automate the jobs" and now the McDonalds by my house is offering $23/hr for entry level work and robots are nowhere to be seen.
There are a few companies working on automated meal makers and they are slowly being rolled out.
It is just going a bit slow right now.
Ahh yes, as the AI marketing department always says, we're 99% of the way there, it's just that the last 1% is the hardest!
https://www.bloomberg.com/news/articles/2021-08-17/waymo-s-s...
Still, it seems that even those that clearly are solved problem can be done badly. Recently KFC rolled out here. And their kiosk seem to miss the basic options to customize the meals. Like just removing things. Can't do that with meals... Have list of extra options of stuff possibly not even in the product... Actually they don't even tell anywhere what is in their burgers. But I digress. All other chains including the local one manage to have these options present...
So in the end automation won't always solve everything immediately...
Or like shifting from having workers fetch items for you to modern-style stores where you have to find everything yourself (that change was long enough ago that the idea that you should feel put-out at having to do this part of a store's job is lost to time). Or filling your own drinks, which is at least semi-compensated by being able to refill as much as you want or even "steal" an extra cup, but since a large soda costs the store pennies that's not much of a benefit.
I'm struggling to think of a consumer-facing "automation" that wasn't actually just making consumers do more work. It's bad enough that we have to do the work of regulating prices (think of the time and brain-space you devote to figuring out whether the sale price on, say, apples is actually a decent one, keeping that figure/heuristic up-to-date, et c., now multiply by your entire shopping list, now multiply by the entire population)
https://misorobotics.com/flippy-2/
Looks like it's a work in progress.
Who's pouring the drinks at your McDonalds? Over the past five or so years, the robots have taken that over. McDonalds has never been a stranger to labor savings, although I don't think they use burger conveyors like other chains, they do lots of little things. They've also been putting in two lane ordering all over the place, which increases throughput.
All these things work together to reduce the people hours to put together an order. Sometimes that means one less person on a shift.
Generally, prior to COVID-19, the customers themselves.
At least 10 years earlier. Probably more but that's outside my memory range.
https://boards.straightdope.com/t/mcdonalds-refill-policy-in...
It’s all happening in Asia and we outsource our manufacturing to them. This won’t end well for America.
With a UBI there is less incentive due to hunger but those same wages look much more attractive. There is still an incentive to work.
The money for the UBI does imply that profits go down, taxes go up (a mixture).
But importantly those workers, previously on the edge of starvation, will start consuming services initiating a virtuous cycle. That is the theory.
But a sensible housing policy (hello San Francisco) is very important or landlords will simply hover up all the surplus.
I agree, but is this feasible or wishful thinking?
As a society, we’re decidedly split on whether we should wear masks or should or should not get vaccines, despite the science or despite whatever seems like a rational decision. (Admittedly I’m introducing my bias here).
Would raising pay for retail workers or people acknowledging that we need to treat them with respect - would either of these actually lead to the right outcome? Or would it fuel another voice that vehemently sees these jobs as a stepping stone and not entitled to respect and dignity?
If we always chose not to do something because it would be met with resistance, then nothing would happen ever. The US passing the civil rights act was met with vicious resistance as it was happening, should it not have happened because there were critics of the law? Ultimately, I think we do need to raise pay and facilitate a higher level of discourse in those kinds of environments., regardless of what detractors will say.
But I think the overall idea that companies would have to put a little more effort into their employee’s well being would be borne out if a country could commit to a basic income for long enough for the effects to shake out.
This is good behavior that companies would be forced into, not because of morals like respects and dignity, but because a mass exodus of employees would eventually hurt profits more than keeping unreasonable customers around.
Hell, we have professions now that demand respect (cops) and magically, the vast majority of the population seems to be able to grow up and not act like a child when confronted with an undesirable situation.
I don't think anyone in retail is asking for an undo burden by the rest of society when demanding humane treatment in their workplace.
By law in most situations you must comply with the police officer. Not really the same.
https://www.forbes.com/sites/bryanrobinson/2021/10/14/employ...
Also isnt there some possibly-not-totally-fantasy narrative where at least some of these jobs become automated in response to workers not wanting them and its maybe a good thing?
While we have automated things, we are nowhere close to that today. A lot of current menial jobs CAN be automated today, but the cost of labor is cheaper than designing and deploying automated solutions.
Having higher cost of labor will incentivize more capital solutions to menial jobs (automation, substitutions), which will change societal patterns a lot (maybe you should expect a machine to take orders at every restaurant) but could certainly lead to a happier 'steady state' long term.
"Suppose that at a given moment a certain number of people are engaged in the manufacture of pins. They make as many pins as the world needs, working (say) eight hours a day. Someone makes an invention by which the same number of men can make twice as many pins as before. But the world does not need twice as many pins: pins are already so cheap that hardly any more will be bought at a lower price. In a sensible world everybody concerned in the manufacture of pins would take to working four hours instead of eight, and everything else would go on as before. But in the actual world this would be thought demoralizing. The men still work eight hours, there are too many pins, some employers go bankrupt, and half the men previously concerned in making pins are thrown out of work. There is, in the end, just as much leisure as on the other plan, but half the men are totally idle while half are still overworked. In this way it is insured that the unavoidable leisure shall cause misery all round instead of being a universal source of happiness. Can anything more insane be imagined?"
[1]https://harpers.org/archive/1932/10/in-praise-of-idleness/
From that moment on it was very clear to me what my value to the company was. Combine that with the long hours, low pay and constant watching over my clock in times made it very easy to just "walk" from that job with no notice.
The worst part was knowing that there were people who had been there 20 years and had (seemingly) no upward mobility during the entire time. After 6mos I was moved up to QA (with an insignificant pay increase) and I realized that I was as high in the company as I was going to get without someone dying.
I have no issue working...but if I am going to be poor while working 56hr weeks...why do it?
Well that's not the outcome automation is having but quite the opposite. Automation means fewer jobs for some, meaning those left without those jobs have to compete for a brutal job market to make rent when unemployment runs out, it doesn't mean they get to prop their legs on the table and pursue arts and other hobbies.
The automation utopia where everyone is free from most work cannot and will not happen under the current economic model where all the benefits of automation are vacuumed by the private companies developing them and the governments have to deal with those left without a job and support them with taxes taken from those who still have a job.
Now we have 40 hour 5 day weeks as standard - already a utopia compared to before automation started with the first industrial revolution. People are even talking about 32 hours. These tiny work hours buy us a king’s ransom of goods, and probably half of us are either retired or too young to work.
Added to this, we’re seeing the best job market in history.
If you can find the cloud inside this silver lining, your eyesight is to be applauded. Perhaps you had modern eye surgery giving you 20/20 vision.
https://fred.stlouisfed.org/series/LES1252881600Q
Fewer workers means fewer goods and services. If demand remains constant or increases, you get inflation. The pandemic caused supply chain issues, but this wouldn't have been as big of an issue had demand been artificially pumped with the stimulus. In many places, such as the ports, productivity is at an all-time high, but they're still bottlenecking consumers.
I think it's likely a universal basic income (small at first --- not a "living wage" yet, but enough to provide everyone with more security and to eliminate some conditional benefits programs, EITC, etc) would be a good thing. But it's really fairly unprecedented, despite efforts at research.
A big question to answer is about paternalism in benefits-- what's the right amount?
We have a big contingent of people angry when other people buy luxury goods or candy with SNAP. We're also worried that if we don't provide housing or food assistance to the poor-- putting strings on the money ensuring it's used for those purposes-- they wouldn't eat. We end up with this wacky system where there's restrictions on the money that are ineffective at preventing abuse but also strikingly effective at preventing poor people from using it to systematically improve their situation. We also incur massive costs for these administrative controls compared to just giving money out, and create benefits "cliffs" where improving your income reduces your net resources.
The more power you give to employees the faster people will jump ship from bad bosses to good ones - and the awful ones will have a harder time keeping their positions.
For example janitorial workers. At an old workplace of mine there were three shifts of at least two workers three during the day. Then they were cut to just one worker per day and evening no nights. One person frantically running from bathroom to bathroom not even getting to the other tasks that had to do like vacuuming.
Then they cut their hours to part-time for all but two workers. At minimum wage it was barely livable on 40 hours per week.
They also ask the night worker to come in the next day with less than a seven hour gap from the previous shift.
Even at the punch clock they were scolded for punching in or out a mere 1 minute off from the time to work or end.
I could tell when talking to the staff many of them felt defeated and this was the only job they could do. They just had to sit there and take it.
Guaranteed income (GI) would at least buffer some of the anxiety. I could also see businesses knowing it existed would cut worker hours to part-time. But if part-time plus GI was enough then the worker has the power.
This is the biggest advantage I see, and shows why you wouldn't even need a living wage. You need a sufficient amount of money so that if a worker is being abused they can say "fuck it, I quit" and be able to live until they find another job. Being able to do that should prevent a fair amount of abuse in the first place.
You have that luxury because of savings.
It will fail unless the government gets easy money from eg producing oil like Emirates. Otherwise someone needs to produce stuff. We already have a big inflation problem that is directly related to policies that rain money on those not working. Let's not make things even worse, please.
Do we have any sort of evidence for that claim?
[1] https://www.washingtonpost.com/graphics/2020/business/corona...
ometimes first order approximations (or "basic principles") lead you in the wrong direction. My understanding is that economics is full of pitfalls like this.
So yes. We do the same for non-wage slavery. We do the same for any bad thing that trades off against a different bad thing.
[1] https://www.ajc.com/news/this-has-been-happening-for-a-long-...
[2] https://www.smh.com.au/national/nsw/migrant-worker-lured-to-...
[3] https://www.hrw.org/reports/2001/usadom/usadom0501-04.htm#P3...
We should get rid of wage slavery. We can then work on the economic consequences.
We have inflation because of sustained fiscal and monetary stimulus through a period of sharp restrictions on economic activity being sustained after most of the restrictions ended; the fiscal stimulus has already been withdrawn, and monetary stimulus is slowly unwinding.
But that really doesn't have much bearing on a tax-funded UBI, which—unlike deficit-funded airdrops—is redistribution, not general stimulus.
Because it impacts all of us. Imagine the impact on crime and homelessness if there were UBI. Quality of life would improve for everyone. I'm happy to pay my taxes if it goes to that.
Take housing for instance: rent would rise a lot when people suddenly get x more. People pay because they have no choice so the x transfers directly to the controlling third party in the end, completely negating any possible benefit but for those already in a non-vulnerable position.
Same with the telecommunications pseudo-monopolies: you really think they won't try and tap into that resource even if a little? Communications has become almost as vital as housing the last decade.
Companies will do everything they can and the public is capable of paying to increase their revenue.
Also: depends on how you define 'rent control'
One of the reason some people do not move is due to being comfortable and at travel distance to their job.
Under this light you can see what happened to several European cities with high rent due to University: as soon as Covid made students go home to their parents as classes were online, there was a huge drop in rent prices.
How? Why would it not just inflate us like all these payments during COVID?
One example is delivery workers. Everyone expects their packages to be tracked which resulted in total surveillance of delivery workers with extremely tight time slots. Competitors that didn't expand here were soon left behind because the profit margin of that industry is extremely low.
Janitors are similar. People will take the cheapest option and the companies that exploit the best with prevail.
This is a selfishness that cannot be denied and in my opinion would make a basic income impossible. Prices would just soar to a level where this income is of little consequence.
Sensible laws for worker protection to restrict selfishness can better the situation more efficiently.
If the worker gets X from the state, they employer can pay them X less for status quo, which obviously was an amount of money that worked out earlier.
I.e. the cost of living in cities is what prevent workers from undercutting each other in cities.
The worker would only continue a "shitty" job, if they get a better deal than before. So it makes sense to conclude that wages would cost more to entice a worker if said worker was able to obtain a UBI.
Jobs that would be popular and enjoyable, would be sought after - and those wages would drop.
Wait until you hear about healthcare. Not sure how you would staff an hospital floor once UBI is introduced.
To me, your argument says that UBI will cause a re-evaluation of the income market, where undesirable jobs will have to be priced higher so that employers still can find the employees they need (and the services will have to be priced accordingly). I'm okay with that outcome.
(in this particular case: I suspect that private companies will very quickly add language to their contract that being abusive to their employees will void the contract -- I'm okay with that outcome as well. In the case of government services, that could mean that the person would be required to only interact through an intermediary, like a legal guardian or social worker)
I'm not arguing either side of this, just that there are very real impacts. It's not a situation where every entry-level job is going to be floated by a rising tide, some people will drown.
Under UBI, a government could do away with minimum wage completely because there is no coercion by necessity. The employer only needs to pay enough to make it worthwhile for the employee to show up.
Using UBI to eliminating minimum wage, government unemployment insurance, and other problematic/expensive programs is one of my favorite parts of UBI.
If there is a delay in UBI increases, or if the UBI is not properly matched to the COL, there will still be pockets of people who must work by necessity.
That's exactly my point—why would you show up to a job that pays you less than you receive by default? It doesn't make sense to go from working 0 hours to working 40 for a less than 50% increase in income.
So I’m in this weird limbo that I think could be solved by a customer rep chat in minutes.
Just an example of automated chatbots being only programmed for a couple common situations and not things like, “I’m a pseudo Verizon customer who is receiving bills but has no phone number with Verizon.”
In some businesses the margins are so tight that increased CS costs will put them under - the answer for those businesses is, unfortunately, to go under. However, everyone that's left should be held to a reasonable standard - maybe companies will start levying "Abusive customer" charges on especially painful support calls and piss off a small portion of their customer base while keeping the vast majority happy and well served - maybe they'll just up their charges across the board (or cut the costs into their profits) - that's up to them. What's up to you is the choice to cease being a customer[1] you can chose to discontinue your services with them - and if they have difficulties closing your account or continue to charge you erroneously for services... then you can reverse charges and report the behavior to whatever passes for a better business bureau in your neck of the woods.
Dealing with crap CS is a cost that companies are currently levying on customers because they can - but you can refuse to play their game.
1. Unless you're living in a service monopoly in which case - shake your fists at the heavens, bend over, and consider moving to some country with sane anti-monopoly laws.
We literally just did this with COVID checks.
I would vote for the complete opposite of basic income - invest heavily in education, trade schools, colleges and free access to tools for learning, apprenticeships, etc. Give tools to people to become productive and sustain a good life, by also providing value to the society.
I suspect California will try UBI anyways and fail spectacularly. It will be a canary in the coal mine.
> I suspect California will try UBI anyways and fail spectacularly. It will be a canary in the coal mine.
We've already discussed Richmond, CA before.
The main strenght of the UBI is that it simplifies the bureaucracy: in theory, you just give everyone an income that should cover health insurance, education when needed, food, housing... so if anyone prefers to spend the money on drugs and hookers is up to him: the society already provided with everything he needed. The key is that you can live with the UBI, and if you want recreational drugs you have to find a job for the extra money or sacrifice some of the basics.
UBI + lots of other welfare programs makes little sense.
As for the jobs people won't do, those jobs will be higher valued and eventually, when the price is right, people will do them.
The angry people who don't want to work, who cheat the system won't have to (some still will, of course, but since everyone gets the same amount no matter what, there's less incentive and less frustration built into the system).
Finally, people who don't have the means to take risks will suddenly be able to. We will unlock their potential and the future will benefit as a result.
I just think it's a great idea all around.
> The angry people who don't want to work, who cheat the system won't have to (some still will, of course, but since everyone gets the same amount no matter what, there's less incentive and less frustration built into the system).
No need to bring up points like this when the effect on the overall system is small. It’s a great way to continue to demonize poorer people and let the 1% or .1% off the hook.
—-
overall I agree with your comment. Nice ending.
Basic income experiments usually game it like this: We will give you x years of payments monthly for just being alive.
Then they see what happens. The problem is, policy has one huge difference. It doesn't end.
The difference between, I'll give you 2 years of payments monthly and then you'll have to take care of yourself the rest of your life is extraordinarily different than, I'll give you monthly inflation adjusted payments for life, there will be no point in the future when you will need to take care of yourself again.
Think about the FIRE movement. People are working to create an early retirement for themselves with the government not offering it. There will certainly be a percent of the population who retires with basic income.
To be more precise, it has no specific end date, but in a democracy, it can be repealed again with every new parliament. Or possibly via a ballot initiative.
At which moment the net recipients are in for a major shock.
If you're living in a country where 50.1% of the population can impose their will on the other 49.9% unopposed, you're not living in a healthy democracy. Regardless of what the media says.
(And yes, the Brexit referendum is a good example of that. All the issues the British government now has in living up to the results of that binary decision are problems of their own making -- on the other hand, one might say that these current problems show that the British democracy is in a healthier state than that referendum made it out to be)
- if we had guaranteed roof, we'd do different jobs, fill desire, aim at useful. A lot of people go to work with zero benefits being ability to pay rent. They dread it but they have no choice. It's a weird balance
- any task can be done, even being berated or doing petty tasks, you just dont have to do it from 9 to 5, all year long. You can do 2h if that pleases you. And those jobs now being recognized as nasty would be distributed differently or at least valued as such and workers doing it would feel appreciated
ps: our current system makes us angry at each others. very ironic.
As with most things related to worker protection, this presents a trade-offs. Some workers will be better off, whereas the customers that rely on them for services will end up paying more money for the same goods or services, a form of inflation.
I am not judging what is best here, I just want to point out that it's a trade-off.
And one observation: most of the HN audience is pretty well off, definitely middle class or above. So when someone says "Im ok with workers getting paid more and prices being more expensive" they are virtue signaling but forgetting that if you are poor, Walmart prices is what affords your lifestyle and even small increases disproportionally hurt the poor.
A second observation: you can't create wealth by giving everyone more money. To create wealth you need to increase supply and reduce real prices, which means increase productivity. I am not sure why this is not part of the UBI conversation.
A lot of shitty jobs out there rely on the fact that people need to settle to pay the bills. There are people with little experience or going through rough times who simply can't afford to wait for a good opportunity to come along, they need something to hold them over for a few months or maybe years. The employers know that these people have few options and will leave as soon as they do, so they offer low wages and overwork their staff and replace them when they are used up. UBI means people don't have to settle for the first low paying, undesirable job that comes along, they can hold out indefinitely for something better. Yeah, people are still going to need to get their foot in the door somewhere, and some opportunities might be too rare to be considered realistic, so we're not all going to be working our dream jobs, but the worst abusive employment anti-patterns will go extinct.
Having worked in a factory, there's no way I'd do that for free. Heck, even at my current salary, which is multiple times higher, I wouldn't want to do that again.
Also, if basic income is good enough then their wouldn't be a need for that kind of job :).
it does need balances tho, to prevent abuse, especially against undeclared workers double dipping the state (not paying labour taxes and getting the income)
basic incomes tho has a series of drawback that current experiment cannot easily handle.
the first one is of principle: it doesn't solve what caused poverty in the population, and unilaterally ties recipient survival to the benevolence of the ruling class - without a strong economy to zero involuntary unemployment, it begins to look a lot like vassalage.
the second one is of application: punctual welfare is inherently less efficient than aggregated action - living universal income + private school and private healthcare is just a way to bleed state resources into private coffers. public school and public healthcare are much more efficient, and then the supplementary income should just cover the remaining quota of needs (housing, food etc)
there's also second order effects tied to basic income inelasticity - if housing or schooling or whatever price raises, it can displace all the recipient from an area. it's not unrealistic to expect basic income city quarters, at which point state provided housing seem a better alternative to prevent basic-slums.
and there's a question about what the long term goal of the society are - given that there will always be premium goods/service out of reach of people living off basic income, I'd wager that while basic income is sure helpful to bring people out of poverty and placing them into the same bucket of the working class, it rarely help bringing such people into middle class, as that would require the saving necessary to bootstrap a private action, which I rarely hear to be the goal of basic income.
But I worked with plenty of people in retail and food service who were older and had families to support and mortgages to pay. They didn't have the luxury of putting their self-respect above their paycheck.
It's ironic to think that people put up with that level of abuse for 8 or 10 or $12 an hour. Now that I'm an engineer, he would be unthinkable for anybody to talk to me like that, but in food service I experienced it from both customers and managers on the daily.
If the only way anybody can stand working someplace is if they're so desperate that they can't afford to leave, that's a job that shouldn't exist.
You have no personal experience with UBI schemes, yet you think you know what people would do based on what you think you would do. A long time ago people thought that heavier objects fell faster than lighter ones. Then Galileo came along, conducted an experiment, and proved them wrong. It seems something similar is going on here. Peoples intuitions about UBI and joblessness are faulty and researchers are disproving them.
In the Nordics, there are no manual car washes, yet life goes on. Economically it doesn't make sense because of the high labor costs, and realistically it is a menial job that can be for the most part automated.
If you want to live in a world where you can have a cheap hand wash in your back yard, then you have to also admit to wanting structural inequalities to keep people trapped in those carwash jobs. It's delusional to believe that the people washing your car have a path out through hard work alone; my observation is that they already work pretty hard.
UBI is much more about giving workers power than giving them free money. And yes, there will be dole bludgers. Unfortunately any system is going to have inefficiencies, you just have to pick which ones and live with it. Alternatively, you can get tough on crime and house a prison population.
This is simply not true, at least in the more densely populated parts of Norway. They are simply very expensive.
In the US, you can drive up and pay $1~/min and spray your car yourself w/ soap and water. You can also do the drive-thru option for about $10. On the upper end, you can pay $50~ for what might start as a drive-thru, but then someone comes out and does a manual touch up where the machine might have missed a spot, and then they will vacuum and wipe down the interior.
At $100+, you're looking at a hand wash and detail, potentially going up to hundreds of dollars for different aftercare options. Detailing can be very lucrative if you get a good referral network established.
It's also worth mentioning that you've jumped from menial to skilled labor at this point. There's a big difference between hosing off a Prius for the owner's commute and detailing a McLaren for an auto show. The latter is far more satisfying work.
Those polishing cars for auto shows are quite a bit in a different realm and not what’s being discussed here.
I agree that detailing supercars is a different league.
But yes, I doubt an American full-service car wash would recognizable in the Nordics.
And of course we have the kind where you wash the car yourself using a high pressure water jet in addition to the drive through kind (both those with and without brushes).
>> ‘It’s sometimes said that people will sit around doing nothing if you give them free money.’
this never make sense unless people have different definition of UBI. You will need to work to borderline enjoy life.
And it also shift the power to workers. No more shitty jobs like what you describe just to put food on table. The level of abuse people will tolerate before they quit will reduce. It will fundamentally shift ( or lift ) the power in bottom half of the society.
But no work on UBI have ever provided a solution how they deal with "living". If I have a small flat of 6m2 ( unless you want to live in a cage like Hong Kong, I think 6m2 per person is bad enough to be the absolute minimum ) , enough for a bed and bathroom, and zero rent. Getting yourself fed is easy enough.
Which shift the question from UBI to something else, our biggest problem isn't UBI, but property. How it is both an investment as an asset as well as a fundamental need by human. You could always pop up the property prices so UBI will never be enough. And every time we have a discussion about UBI, it is always about tax, equality, willingness to work and nothing on actual "living".
UBI would be a major part of the solution, because it would enable people to move to lower cost-of-living areas where their UBI payment would go a lot further. Today this sort of mobility is heavily impeded by the need to be around meaningful job opportunities and all sorts of government services provided in-kind. With UBI, the job opportunities would spring up where people reside and not vice-versa.
So... to pay for a private apartment maybe that crap retail job would be ok.
One of the silver linings for me of the pandemic is how much the Great Resignation is revealing to the general public how much "essential workers" were poorly paid and miserable. Not even in a way that was necessitated by the work itself, but just because their bosses could get away with being jerks.
If you think that people who are sitting at the bottom wouldn't take a job to ensure that their basic needs are met and they can have something nice for themselves every once in a while, then I don't know what to tell you. People didn't just start working degrading jobs in the 2010s.
This is basically Plato's Republic 101.
Perhaps jobs are scarce and this worker really has no place to go and must endure the abuse. Once BI is introduced, what percent of workers would quit and stop working, vs. quit but find new employment using the BI to bridge expenses in the meantime and be able to make a full time effort of the search?
BI should make employees more mobile and employers with unpleasant work will need to pay more to get those positions filled.
This feels like a particularly unfair anecdote in the context of what we're talking about. Imagine for a second that the tables were turned and your spouse was disabled and unable to work: Everything is harder – they can't leave the house without someone to give them a ride; maybe they have to use a wheelchair, which makes everything twice as difficult. They're in survival mode every day.
Not only do they rely on the state for money to eat, to pay rent, to keep the lights on, but doing anything enjoyable is challenging. They have to navigate a byzantine system that is DESIGNED to make qualifying for support extremely frustrating, and then have to stay on top of getting their benefits regularly. The system has literally trained them to react to any issue with anger because they know that whenever a problem occurs, it could be weeks or months until they get the money they need to survive.
I'm not saying that your spouse's experience was justified in any way – dealing with that requires a hell of a lot more than minimum wage! – but (theoretically) this particular problem would go away with something like basic income, where most of these people would have their basic costs covered. They might still have "disability" to help pay for all the other stuff disabled people have to deal with, but at least they aren't relying on a sclerotic bureaucracy to eat, yunno?
One reason retail workers passively endure being berated by customers is that they are fearful of losing their job. UBI would reduce that fear and increase worker power.
I'm neither arguing for nor against UBI here, but from my understanding, you description is not of UBI. Here you are saying income as a substitute for work. Where as UBI as I understand it is provided independent of work. Meaning that by your spouse quitting she would be losing half of her income.
Maybe she still makes that trade off and quits and the program needs to raise wages to keep people. Or maybe she stays in place for the pay (with abuse). Or maybe the programs doesn't raise wages and has worse/fewer employees as a result.
But it doesn't sounds like the situation you describe is UBI.
"short term experiments done in a lab" seems to be psychology's equivalent of "in vitro" (aka. in a test tube). I'm not really sure how you can draw any conclusions about someone's lifetime behavior, using a experiment that looks at the behavior of people sitting at a few hours at a computer.
That's the problem with these "studies". They are completely different from a permanent government program. They can't tell you the impact on inflation, the impact on the labor market, or if it is affordable over the long term.
https://www.wired.com/story/free-money-the-surprising-effect...
UBI on the other hand is done by taxing ourselves to pay ourselves, or worse, printing to pay ourselves.
>The Alaska Permanent Fund has been giving $1,000 to $2,000 a year to its citizens for decades
Neither of these are amounts to not work on. Many people quit working after reaching a specific "UBI". Either through social security or retirement/investment accounts. This is also the goal for many folks such as FIRE.
Fortunately or unfortunately, I think there's not much of a chance of this getting implemented in my country during my lifetime. We can't even agree to give people universal healthcare. I think if anything the pendulum seems likely to swing in the opposite direction given the political landscape nowadays. But even if I could decide this unilaterally . . . I'd probably want some other country to try it first, and see how it goes. It doesn't obviously seem like a good idea based on what I know today.
I always see people blaming benefits for people not working, but nobody ever seems to offer an explanation why these same people didn’t return to work once the benefits were cut down to their pre-pandemic levels.
It’s also incongruous with the other hair on fire arguments you see about UI causing labor shortages; it’s inconsistent to say that UI makes people not work, then hand wave away why months and years after cutting the benefits were still facing a “labor shortage” in a lot of job markets. If it’s really down to UI, then you’ve got to propose some mechanism for why canceling UI didn’t fix the supposed labor shortage.
Doesn't the fact that they have savings explain why it's a slow trickle?
The issue is that the story of enhanced UI isn't internally consistent. Apparently UI made all the (implied) lazy people stop working because it was more profitable to not work than work[0], which made it critical to turn off the benefits as soon as possible in order to force people back into the office. Except once they turned off the benefits people decided not to work and spend down their savings because ... erm, why would people do that? And doesn't this undermine the premise that people stopped working because it was cheaper to not work, if they're deciding to go broke not working for funsies?
Personally I think that the story of the labor shortage is explained as such:
1. Loss of workers due to death, disability, retirement, changing careers, and general re-evaluation of life choices in the face a deadly pandemic
2. For those that remained in the service industry, a brief exposure to being treated with dignity and as an essential part of the economy was a real awakening moment for a lot of them, and many are no longer willing to put up with workers that pay poorly and treat them as sub human. In my parts the restaurants that offer good wages always seem to be fully staffed, while everywhere else has signs crapping on people's work ethic and apologizing for slow service. Coincidence? I think not.
I think UI was critical to get people through the early period of the pandemic due to the chaos and the uncertainty of the early pandemic, but I am extremely dubious about the effect that UI had as compared to the deadly pandemic.
> And didn't unemployment bonuses only end 4 months ago?
Oh lord no. A lot of states started disabling enhanced UI back in June and July. My state ended it July 19th, nigh upon 7 months ago. I am doubtful many working Americans
0 - I've seen this floated a lot by CNBC types, and they never seem to engage with the fact that the most lethal profession during the pandemic was line cook.
Once you get used to 100% of your time being leisure time for months to years, it's hard to overcome that inertia and start looking for work again, even when it's the rational thing to do.
> changing careers, and general re-evaluation of life choices
People changing careers wouldn't contribute to the total number of unfilled jobs being higher, though. And if "general re-evaluation of life choices" leads to quitting your job, aren't the only two possibilities that you either get a new job, or you don't work anymore?
> A lot of states started disabling enhanced UI back in June and July.
But what about the rest of the states? And the federal government left their money faucet on until September.
Are there actually any evidence that there are more unfilled jobs though? Unemployment is actually at 3.9%, which is down to pre-pandemic levels. That's better than 2017 and most of 2018, actually.
Heck, now that I'm pulling up real numbers (should've done this earlier), unemployment spiked up to 14.7% in April of 2020, and was on a continuous downward slide after that, including before any state cut its enhanced UI. Nationwide unemployment was at 5.9% when states began cutting UI. This is more consistent with "crisis over, we don't need to keep this" than "oh god we have to cut UI or they won't go back to work. My state had an unemployment rate of 3% when they turned off enhanced UI, no need for a stick there!
For comparison the official unemployment rate was above 5.9% between August 2008 and October of 2014.
I think that the best argument for here "UI lets people be lazy and not work" is not that people stopped working during the pandemic because of it. I think the best argument is that people knew that this system was temporary and that they had to get a new job and start working when they felt it was safe, because it was temporary. One might expect different results if the system was more generous permanently, I don't know.
> And if "general re-evaluation of life choices" leads to quitting your job, aren't the only two possibilities that you either get a new job, or you don't work anymore?
Either possibility is incompatible with the general thesis that UI was why people stopped working, and we had to cancel UI in order to get people back into work. Either they didn't need the job and no amount of UI tweaking will bring them back, or they decided to get a different job and no amount of UI tweaking will fill their old one.
> But what about the rest of the states? And the federal government left their money faucet on until September.
I could be wrong here, but UI is administered through the states. The federal government had the money tap on to the states who then gave it out through their system.
Personally I think this is a good thing, both the buffer and the staggered return to work.
Probably the same people who said that increasing the money supply wouldn't cause inflation because MMT or some other tendentious garbage.
It's not meaningless. It's not enough to prove that basic income will have a long term positive impact, but it is enough to show further experimentation on a larger, more long term scale is worthwhile. It's decidedly unreasonable, not to mention unscientific, to dismiss something because you don't like it.
This isn't suggestive, valid science. It's the equivalent of setting up a "scientific" contraption that purports to be a perpetual motion machine. You can create a pretty convincing fake perpetual motion machine, but because we have a broader theory of mechanics, we know perpetual motion is impossible, that the purported machine must be cheating somehow (even if it's not immediately obvious), and that to give funding for further study based on that machine's existence would be absolutely stupid.
Do you mean the Alaska Permanent Fund, or something else?
I hope you don't mean any fickle systems tied to covid, and I especially hope you don't mean the unemployment boost the US did; unemployment pay is very different from basic income.
And even if something fails, that doesn't prove it's some kind of impossibility like perpetual motion machines.
It's not obvious that that's the guaranteed outcome of pensions, or a consequence of an unexpected change in lifespan in the mid 20th century.
It's definitely possible to give away too much, but that's not a good argument that $0 is optimal.
https://gulfnews.com/world/gulf/kuwait/almost-1m-foreigners-...
The purpose of money is a medium of exchange for goods and services. Giving money for the sake of nothing defeats the entire purpose of money, because you're giving everyone money without creating new good and services. Note that this is different from conditional payments like food stamps or pensions, which serve the purpose of insurance. This is also different from welfare, which is targeted towards certain people in hopes of improving their well-being.
Yeah that sounds pretty unbalanced.
> The purpose of money is a medium of exchange for goods and services. Giving money for the sake of nothing defeats the entire purpose of money, because you're giving everyone money without creating new good and services. Note that this is different from conditional payments like food stamps or pensions, which serve the purpose of insurance. This is also different from welfare, which is targeted towards certain people in hopes of improving their well-being.
People get lots of things for "free", like infrastructure, and that doesn't defeat the purpose of money. Basic income isn't "for the sake of nothing".
What conditions do you think are important for food stamps and welfare?
If a certain level of low income is good enough, that's basically equivalent to universal income plus progressive taxation.
So how would that be different from Americans getting ~$12000 and buying goods from developing countries where workers also make $300 a month.
>People get lots of things for "free", like infrastructure
Infrastructure serves a specific purpose. Why should we give money to people for free when we can instead use it to build infrastructure?
>What conditions do you think are important for food stamps and welfare?
Welfare targets people who cannot provide for themselves, such as children and the disabled. We don't lose much productivity by giving these people money. Every able bodied adult should be expected to give back to society.
I don't really know how to respond to this because we buy those goods anyway.
> Infrastructure serves a specific purpose. Why should we give money to people for free when we can instead use it to build infrastructure?
Every category of spending has diminishing returns. You'd never want to spend everything on infrastructure, or zero in any effective category.
> Welfare targets people who cannot provide for themselves, such as children and the disabled. We don't lose much productivity by giving these people money. Every able bodied adult should be expected to give back to society.
We also want to have certain standards for non-dehumanizing employment, and not everyone has access to jobs that meet those standards. Basic income is a way to help that situation a lot, but do you have better ideas?
Also how much productivity do we need to demand from everyone? Somehow a century after establishing 40 hours, with productivity per hour skyrocketing over that time, we're demanding more than 40 hours from so many workers just to make ends meet.
I think the real experiment is perpetual consumerism and unchecked global free market capitalism.
Some places that could be considered a UBI welfare state would be Scandinavian countries or parts of Canada, hardly examples of self-evident failures.
Canada does not have any UBI. What are you referring to?
So let's not be quick to call others' views "stupid".
This phrase is usually used to force through otherwise unpopular economic policies. But here’s the thing, this isn’t actually an argument. You’re unilaterally asserting that you’re right and that anyone who disagrees with you is a child that refuses to accept “hard truths”. But you have offered literally no evidence for your assertions, only bluster. This is mere abuse of rhetoric, not an argument.
Oh, and it’s funny how only other people have an “agenda”. As if you aren’t also expressing a policy preference too.
I'd prefer a comment that simply and politely argues for a particular interpretation.
For example, "Manitoba, Canada experimented with Mincome, a basic guaranteed income, in the 1970s. In the town of Dauphin, Manitoba, labor only decreased by 13%, much less than expected" [1]. There are plenty of others.
I expect a targeted need use of scarce resources (tax money) is a much better use for helping those who need it, instead of ham handedly giving it regardless of need, thereby shorting those who need it at the benefit of many who do not.
And the current inflation (and previous events where govts gave out decent sums of cash to help short term other econ issues) shows what happens when people get money for free - prices rise to absorb it. The reason being if person X is willing to put in pain Y for product Z, this does not change if you rescale the meaning of money.
Product Z simply rises to cause person to put in the same pain to obtain it.
I totally agree with you on re: inflation, though. Some organization, presumably government, will need to manage any UBI implementation, and government is nothing if not an inefficient allocator of its resources. I worry any broad national UBI system will just raise inflation to absorb the prices, while increases tax on the entire population, and losing a non-trivial percentage of that increase in the transfer.
These taxes would presumably be very progressive.
This effectively would end up more than negating the effect of UBI on the richer people, thus turning it into a directed welfare program.
UBI and directed welfare are essentially same same.
The two big ifs are: would UBI be the same cost as current welfare programs, and can we actually get rid of current welfare if we roll out UBI? There is a tremendous amount of overhead involved in current welfare programs, so it's not unreasonable that the first question is could be resolved. Politically, the second issue seems unlikely to be implemented.
It cannot, unless you're ok with screwing those already on such programs. Do the math, and you'll find it is not even close. Welfare programs (unless you include SS) are given to a tiny amount of people - spreading that across a large group of people simply screws those who need it most.
If you include SS, now again you're screwing old people who many times need the money to give it to people capable of work.
>The downside of nearly all current forms of welfare (in the U.S.) is that they largely enforce the poverty gap. You get to a point where a small increase in pay causes a large decrease in benefits, and you become trapped unless you can get a large enough pay increase to jump the gap.
This common claim is not true. There are ample people moving out of such program regularly, and many of them have limited lifetime benefits.
>would UBI be the same cost as current welfare programs,
No. I've been down this set of math lots of times. Do it - all welfare budgets are public, population is public, it's easy to estimate.
You force corporations to pay, to not be able to avoid taxes - using a VAT that's customizable so things like diapers have say 0% tax vs. buying ads on Facebook has 80% tax. The nuanced ability to lever different goods and services allows tax to be fine-tuned to cover all costs until the floor quality of life is covered/existing for all.
We can supply everything 90%+ of what people need through automation, the remaining 10% or less will be the engineers and system and machine designers and maintainers - while the 90%+ can focus self-improvement/education, family/community and being creative/artistic etc.
Economic maxim: "Corporations don't pay taxes, people pay taxes". This means when you think corporation tax is somehow free, you ignore that comes directly from stock prices and wages, i.e., direct income and pensions.
>you get to decide
Historical evidence shows that directed tax cuts and targets are much better multipliers of using tax revenues. Your method has been demonstrated to costing more for the same public outcomes, which is why there are so many directed tax cuts and directed tax spends. They are simply more efficient.
Simply put forth an estimate of what you think various groups need to pay to get what you think people will get with UBI. Once you try to put actual numbers to things, you soon realize it's simply not possible without damaging a lot of vulnerable people.
>We can supply everything 90%+ of what people need through automation
No, we cannot. Unless people take a drastic quality of life cut, and even then, we cannot.
UBI is, by definition, Universal (e.g. given to everyone). Welfare programs are highly selective and only apply to a small number of people.
The only way to make them cost the same is to massively reduce the benefits given to the small number of welfare recipients, then give the balance to people who didn't previously qualify for welfare.
That's never going to happen, politically.
You may get $2,000/month for "free", but most people reading this would see their taxes go up by $30-40K/year to pay for the program. The money has to come from somewhere.
But that doesn't change the fact that if we pump money into a certain demographic, the assets they're buying will go up in price. In this case, it's the lowest cost housing that will go up in price.
Show us some napkin math. Once you start doing estimates you will realize how untenable these proposals are.
Until you actually write down numbers, it's all pie-in-the sky unicorn dreams.
In the $0 income bracket this would be tax_rate:=100% , in the >$100K bracket it might be tax_rate:=1%.
So now your UBI is paid for but it's not doing anything useful.
However, you can now tune your tax brackets "as per usual" to get a more desirable outcome; lowering taxes in the lowest bracket and raising them in the highest.
The new ability you get is that while previously your progressive tax brackets only allowed you to control the upper limit of the income band , you now also have the ability to control the lower limit of the income band.
Take the salaries of the people involved, and divide that over the entire country. Will that suffice? I don't think so, because it isn't as if 25% of the population is involved in distributing welfare.
> If UBI could be implemented in around the same cost as the welfare programs it replaces, it would have a net zero effect on inflation.
Not necessarily. If the government gave everybody a minimum wage extra, landlords could raise their prices further, shops, restaurants, construction firms, etc. would have to increase salaries to maintain lowly paid staff and raise prices, etc. There's a distinct risk of inflation involved in handing out money.
Isn't that a good outcome? Humans get more leisure time.
If they are getting paid a very high wage, then they already had the leverage needed to reduce their working hours, and they were choosing not to. They'll still make plenty of money.
How much is "plenty" and who gets to decide? What if they live in high CoL area? You propose they should sponsor someone else's leisure time instead of buying a house for their family, for example?
You made it sound like this caused new objections, rather than being one more bout of business as usual tax griping.
And I would prefer not to get into the details of who gets taxed or how to optimally structure a tax today.
The problem, apparently, is that you want to force the latter into the former lifestyle. To that, I say no. In fact, you’re not going to get that world.
No I don't. If I was in charge then for step one I wouldn't change the amount of money those people make at all, I'd try to claw back any productivity gains from the last few decades that aren't going to workers and see how much UBI that can turn into. If I did want to tax someone with 5x income more, it wouldn't be that much more.
If productivity gains come from capital, not from labor, then trying to take that from rewarding capital will also hurt labor. Over the past few decades a significant amount of productivity gains are from capital investment. Your average worker isn't simply turning out 2x or 3x the goods with the same effort. They have been given a productivity multiplier tool paid for by investment before they set foot on the job.
When it often takes significant tooling and tech investment from an employer to increase productivity, if that stops, we're back to much earlier productivity and level of goods.
Next, over the past few decades, there has been (in the US, likely others) legislation benefiting workers that has a cost to employers, which has also taken up some wage growth, by giving workers other benefits. BLS tracks such things under terms like total cost of employment and total remuneration. If you look at these over historical periods, you can see more places that workers are better off today than in decades past, without it showing up in wages.
There are reasonable causes not all productivity gains are immediately given as wages - not all gains come from workers.
Also, any business that already exists under this setup has the necessary equipment, and any new business should be budgeting for the necessary equipment. Not much should be stuck in a place where they have lots of inefficient employees and can't afford to upgrade and can't secure a loan.
A concept missed by most is that the buying power of "$1,000"/month grows exponentially as more and more gets automated.
How do you propose to finance UBI? All proposals that I've seen assume middle class to pay (for example, "everyone pays percentage of their income and then everyone gets fixed amount of money at the end of the period"), not nebulous machine-automation overlords.
> A concept missed by most is that the buying power of "$1,000"/month grows exponentially as more and more gets automated.
I don't observe housing getting exponentially cheaper "as more and more gets automated". In fact, I believe landlords would capture non-trivial amount of any potential UBI program.
Sure, more leisure time is good, but mostly only so if mankind still gets the goods and services they are used to. UBI would not do that.
When national productivity drops a few percent, it's a recession, and people notice the lack of goods and services.
People can already work less. But people also like goods and services.
Why didn't society then collapse when automation began - like textile/garment/fabric manufacturing, etc?
You also seem to be ignoring the other side of productivity - if it drops it's arguably, in part at least, that less people are buying - so there's no funds/fuel for the local system. If UBI had to be spent locally and only on "local" goods - within the ststem - then there's no leak, and instead of fueling China and letting the tank run dry locally - you force fuel to be spent locally. This is why major, credible think tanks estimate an immediate 13%+ increase in GDP with implementing a $1,000/month UBI.
Yes, I am more of a technologist than anything. Automation is not free, and if a thing can be efficiently automated it is already or will be as soon as it's efficient.
Automation gains in the past have not freed large swaths of workers, simply because as more goods are available people want higher quality of life, absorbing any gains. If you want to live like someone in 1950 you could on a much lower salary than people get now, but people now want bigger houses, more cars, more goods, more entertainment, more of everything.
If you think automation will free us all, work on figuring out why all the massive automation gains did not already free large amounts of people from work.
>If UBI had to be spent locally and only on "local" goods - within the ststem - then there's no leak
This completely fails. Consider how good your life would be if you could only have goods you made. Not nice. Then make it people within a mile of you. Better, but still crap. Make it a US state. Better again, but not really anywhere near first world standards.
If you want a first world standard of living, you need goods from around the planet and skilled people from around the planet trading and making and innovating. Buy local simply lowers your quality of life (and everyone, since you'll soon lower the # of specialists that can exist by serving large populations).
>This is why major, credible think tanks estimate an immediate 13%+ increase in GDP with implementing a $1,000/month UBI.
And others have reached the opposite conclusion. Most importantly, the evidence from real world trials is consistent with a smaller, not larger, economy.
That might be true but it also might not be true. If you add a bunch of rules to the program it can increase the administrative cost a lot and leave you with less money to distribute. I'm not sure if it's true, but when I was a kid I heard that Canada's baby bonus (Canada Child Benefit) was made universal because of this.
Pick the system you think is most inefficient, then look up to find admin budget versus money paid out. I've done all this, under the same initial belief you have, and it's simply not true.
And UBI will also require the same overhead to collect and dole out - it is simply a different tax redistribution method than current ones, and will not be zero overhad.
If you can tell us the % of bureaucratic overhead that's consumed by the US welfare system, then please do so. Otherwise you can simply say nothing.
There is so much nonsense repeated here that for me to look up everything, which I have done in the past, would not be worth the time. Take a moment to pick one thing I claimed, check it carefully.
> None of these are simple factual matters
How much is spent by any welfare program is a simple fact. The budget spent to administer that is a simple fact. Thus the overhead is a simple fact.
And I have never looked into one and found this massive overhead UBI people claim.
Edit: from the first term I searched for
https://www.cbpp.org/research/romneys-charge-that-most-feder...
And even with throwing all that small overhead into UBI for free, and assuming UBI has zero overhead.... The number are still not going to work, or, as I started with, will screw those already needing assistance.
You're not going to find a straightforward answer about to the administrative budgets of SNAP or Medicaid.
From that link:
> Eight percent of total federal- and state-funded costs went for administration, less than 2 percent went for services for beneficiaries, and about 90 percent went for food that beneficiaries purchased.
A - so prices of $40,000 cars have increased becauae people got $2000 or whatever for free? What is that as percentage of wages, 0.5%
How about this massive supply chain and manufacturing disruption, could that somehow be responsible?
B - the wealthy and corporations were getting money for free for 20 years, it's called quanittative easing, and it caused massive inflation of asset prices
> "pain Y for product Z, this does not change if you rescale the meaning of money."
Usually economic theories talk about productivity, resources and velocity of money. This stuff about pain sounds like it came out of a sadistic religious cult.
That is part of it. Fortunately there are plenty of other examples in US and other country history where money handouts are clearly a driver, so it's not a question of whether or not easy money adds to inflation.
As mot economists put it, all long term inflation is ultimately the result of more money in the system.
>This stuff about pain sounds like it came out of a sadistic religious cult.
Not a rebuttal. If Bob willing to work job X for Y hours to get apartment Z, simply rescaling the value of money (inflation) will not change that Bob is willing to work job X for Y hours to get apartment Z.
Do you think this is not true? That he gets 37 yotobucks or 19 fishcoins or 39801892 bubblenotes is irrelevant. He is willing to trade time and effort for goods. If the value of the currency moves he is still willing to do this.
Free money will not, and historically has not, come without costs.
Show me your napkin math. I've been all through this so many times that hand-wavy claims are not enough - simple estimates will show you how these claims do not work.
And if it was a simple we getting some more taxes somewhere, do you not think we'd already gather that tax? It's not like there's money that is easily taxable either politically (or sometimes, even economicially).
Sure, if we could magically get more money, and get it from places that are not current places, and ignore all effects of giving such money yo people on inflation and the economy, and get it so that there are zero side effects, maybe you'd be on to something.
But even in that case, it's still wiser to spend this money on better targeted things than simply handing to everyone with no regard who needs it.
Just like you don't need to rebutt a flat earther theory that ignores basic laws of gravity, no-one needs to rebut an argument that ignores basics of economics.
You are conflating consumer good and assets, you are conflating creation of money and redistribution, you are totally ignoring the three most important factors - velosity of money, productivity and interest rates.
Firstly prices of houses and other assets depend on interest rates, not wages.
Secondly UBI does not do 'rescaling', whatever that means, nor does it create new money, it does redistribution. Redistribution does not cause inflation.
You could have presented an argument that velosity of money would increase so much it could trigger inflation, or that productivity would collapse, but you have provided no such argument, let alone evidence
The phrasing tries to downplay the number, but 1 in 8 people stopping work is very significant.
> And the current inflation (and previous events where govts gave out decent sums of cash to help short term other econ issues) shows what happens when people get money for free - prices rise to absorb it. The reason being if person X is willing to put in pain Y for product Z, this does not change if you rescale the meaning of money.
Yes: If you give everyone extra money and theoretically nobody quits working, it's hard to argue that the extra money wouldn't just go to rising prices.
We're already seeing this with supply-constrained resources like housing: In hot cities, people will pay whatever they have to in order to outbid their competitors for houses or apartments. Pouring more money into the situation would only make the numbers go up, but the root problem still exists.
What do you mean? Labor force participation has been trending upward over the last 100 years, not downward.
For an extreme example, fewer than 10% of married women were in the workforce around 1900. Now it's closer to 3 out of 4 married women in the workforce.
I agree that seems very significant. Unemployment is considered to be quite high when it's at 8% for instance.
During the pandemic, we've had to pay people monthly cheques because we forced businesses to shut down, and it's been difficult to get people to return to work. Granted, this isn't the same as UBI, and there are conflating factors, but currently, we're in a situation where we have high inflation and a labor shortage. That's not very encouraging.
In my mind, if we want to implement something like UBI, we need a way to control the inflation it might generate. It might also not be realistic to do this until we have something like general purpose robots to counter the labor shortage. Another problem is just how we finance something like this. Increasing taxes on the general population seems like a pretty bad idea. We'd have to fund it through money printing, but again, how do we control the resulting inflation? High sales taxes? Increasing income taxes in the higher brackets would create a situation where it's less worthwhile to work hard.
"However, the only two groups who worked significantly less were new mothers, and teenagers working to support their families. New mothers spent this time with their infant children, and working teenagers put significant additional time into their schooling"
Note that 13% is likely the net value, so if this group slowed down, possibly other groups actually started working harder at the same time, compensating for some of the loss.
I find it hilarious that they think they can reach the conclusion they did based on that description of the experiment.
I suspect the extra support may translate to decreased profits for landowners. Tenants would have more time and money to file maintenance issues and represent themselves in the legal system, which would cost landowners. In Ontario it costs $50 and takes a lot of time and energy to file a complaint to the LTB. Tenants would also have more ability to change their situation in response to abuse, shop around for a better deal on housing, etc.
(A joint tenant advice, contracting and paralegal brokerage might be a good business in this area. But do I really want to make myself a major enemy of all the scummy landowners? Noooope.)
Municipal offices will intervene on their own to ensure things like heating are taken care of. In Waterloo the minimum allowed temp is 21C or 70F. In my experience with this city's offices, they will take care of this almost immediately (immediately respond to form on website via email asking for evidence of sub 21C settings, then call the landlord and request the temp be increased etc.)
For every legitimate complainant, there’d be a hundred entitled moochies with nothing better to do than work the bureaucracy to their own benefit, entirely at the cost of the few remaining people actually doing any work.
Two, the bureaucracy actually should help with the real moochies. In Ontario Canada tenant protections are crazy and it can take 6+ months for a landlord to evict a non-paying tenant. The official resolution for landlords is to ask the bureaucracy for help.
(The non-official resolution is promoting ignorance about tenant protection laws, legitimately or illegitimately making use of the "family moving in" loophole, and hopefully not any more.)
Income Basic Allowance for Housing Basic Allowance for Sustenance
But providing it for free is less optimal than a basic income.
Either way it's a pretty direct tradeoff. Basic Housing and Basic Food would mean that a much smaller Basic Income would do a similar job.
Not to mention all those illegal immigrants storming the borders.
One of my favourites is to encourage cooperative housing and to have the government become a landlord itself, but with rents capped to a share of income. This way, the government would have an incentive to make the system more efficient and to make more and better public housing, as the money would go back to the government budget and they would be able to lower taxes as a result. At the same time, the private housing market will have to compete. The idea of allowing the government to make a reasonable profit as measured by outcomes to the consumer is very successful for many endeavors, and it makes it very unpopular to cut public services as it would necessitate a tax increase. We have done this in Quebec with Hydro-Quebec and, unlike many crown corporations, it has resisted privatization, while still providing the best prices to the consumer in the world for electricity, without any subsidies (as it generates net profit for the government), and many very good jobs.
Beyond this, it has caused cascading positive externalities not only in Quebec but throughout the world - as it has pioneered mass production techniques of LiFePO4 battery technology that is now becoming dominant for EVs, greatly improved brushless hub motor technology which is now used in many low-cost EVs, and facilitated the construction of renewable energy projects.
This however requires a large change in ideology, as current neoliberal and neoconservative dominant ideologies not only refuse to admit the fact that the government can provide a better overall service than the free market, but are deathly afraid of allowing state owned enterprises to compete with private businesses as a matter of principle. This limits the scope of solutions to many problems.
Can you explain this a bit more? What would be their sources of income other than rents? I am not able to follow your efficiency argument.
Some fraction of people will reduce their workload so their earnings are $3000/month, bringing their total income back to $4000.
Some fraction of people will not reduce their workload at all and inflate their lifestyle to depend on $5000/month.
The overwhelming majority of people will choose the latter; we already know this, it's one of the chief complaints about a materialist, consumerist oriented society. When people get a raise, they overwhelmingly spend it. It's why most people can't save a $1000 emergency fund.
If you are earning $2000 per month and suddenly your income increases by 50% you feel like a baller, you are going to start eating better, ordering take out a little bit, replace that cracked phone, add a little more data to your cell phone plan, turn that thermostat up a little, whatever.
Even stimulus checks that were small and arrived irregularly had a huge impact on hunger in America. $1000/mo on the regular would be revolutionary.
In the case of rent in particular, there would be no reason for any landlord to take less than $UBI if there was a guaranteed monthly payment from the government.
Unexpected or unpredictable cash influx almost always makes things better because people know they can’t “count on it” and they use it for savings or to fix problems they had been unable to fix, rather than “live off it.”
To put that differently: what most people really need is margin to handle the unexpected problems in life. But living below your means to create margin is hard, even for high-income people! Doubly hard when you are low income. So unexpected cash is more beneficial than expected cash, precisely because it is unexpected and therefore inherently “margin.”
In a balanced UBI, the UBI is paid for with taxes. So if you make the average income, you get $X from UBI and your taxes go up by $X. If you make more than average, like your example, then you pay out more than you receive in UBI.
Because average income is considerably higher than median income, most people benefit from UBI.
(I hate saying trillions of taxes when talking about UBI. Since most of the effect of the increased taxes is just a clawback, on net the tax is only in the hundreds of billions).
Morally, there's also a good case for taxing income for UBI -- it's a fair claw back for those that don't need UBI.
But there's a solid base to your argument -- we definitely should be increasing other taxes and decreasing income taxes in general.
> In 2019, around 157.54 million people were employed in the United States. For 2022, an increase by almost 2 million employed people is expected.
Also, do we think this estimate is recent? The US economy has not been adding jobs as expected, and has undershot recent projections by a lot. New hires were 300K short of projections in November[0] and 200K short in December!
[0]https://www.cnbc.com/2021/12/03/jobs-report-november-2021.ht...
[1]https://www.cnbc.com/2022/01/07/hiring-falters-in-december-a...
Sum up the number of people who died, were injured, retired, our found better work, and it had a much greater effect than the government payouts. Otherwise, these problems would have already largely resolved already. Those extra payments are gone.
One of the proposed justifications for UBI is that automation creates wealth that could (or in some arguments, should) go to everyone rather than the ultra wealthy. That automation is taking up a larger and larger slice of the workforce, reducing the need for people to work.
Many people will choose to do work that gives them meaning. Some people will do unpleasant jobs because since they can’t be automated, they pay well. And some won’t work at all. Is it so bad if there is an entire class of people who just don’t work?
Humans and automation coexist. It's not as if all the engineers that used slide-rules and graphing paper went homeless when AutoCAD was invented. Same with farmers and the tractor. Society gets richer as automation makes our labor more efficient.
0: https://insight.kellogg.northwestern.edu/article/wage-stagna...
2. Even in America, the trend of inflation adjusted wages has gone up and up
The main impediment to automation is the ready availability of cheap labor. Automation requires large upfront investments and lots of technical skill on the part of management. A highschool dropout has no upfront cost and responds to voice commands. I can say from personal experience, even when automation will easily pay for itself in a few months, there is generally still huge resistance to making that investment.
Throughout history you will find that many civilizations such as Rome or China had the opportunity to industrialize but didn't because labor was abundant. It is when there is a shortage of labor, such as after the black death, that moneyed interests are forced to invest in making their assets more productive. By paying people not to work (or more accurately not to work the undesirable jobs which ought to be automated) you get the same incentive to automate that a massive plague would induce, but without the tens of millions dead.
And as we automate other things, life will continue to improve, but humans won't ever run out of things to do.
No one is arguing that humans are at risk of running out of things to do, nor is that at all relevant to a discussion of UBI. No one is going to leave a fulfilling and rewarding job to live around the poverty level on UBI, UBI is about getting people out of the low paying, menial work that should have already been automated were it not for the glut of cheaply available labor, the jobs people only take because they will starve to death if they don't. The moment you take away the risk of starving to death, these people can do things besides burn away their hours - they can learn new skills, move to areas with more opportunities, or maybe just work on themselves, and then opportunities which were previously out of reach become available. Not everyone will necessarily find something better to do, but whereas under our current system these people would clog up the gears of progress by continuing to work automatable jobs, with UBI they are taken care of while society advances.
It also prevents weird traps where doing something unintentionally costs you your UBI. (e.g. people who start working and earn too much to qualify for food-stamps / benefits / some other program, thus having them end up with less money each month).
Technology has already made people permanently redundant in many places and will continue to do so. There is a near zero percent chance that technology will stop advancing to replace people's jobs. As we march forward with new automation, there will be a net loss in jobs. UBI is an attempt to solve that problem.
Traffic lights eliminated the jobs of police officers standing in the middle of the road with a whistle. That policeman didn't become homeless. He got reassigned to a more productive role or found a new employer.
I actually agree with you on this if taxation is framed as a way to discourage something. But the goal is to encourage automation but ensure it benefits society, not just a wealthy few, so…
> because it makes society wealthier and more productive.
It does not. It makes some people ridiculously wealthy and makes everyone else poorer.
Has the motor vehicle only improved the life of the Ford family or would I be better off with a horse and carriage?
Have personal computers only made Bill Gates and Michael Dell richer or have they benefited the human race as a whole?
All of these are examples of automating laborious processes. All of them have made inventors wealthy and the world a nicer place to live. The economy isn't zero sum where to make one person richer another must necessarily become poorer.
This tax just prices in the negative externalities of job-loss into automation. Job-loss really is a drag on an economy (you need consumers to keep an economy going). Moreover job-loss causes poverty, and poverty is bad in and of itself. UBI should make poverty less bad. Funding that partially by automation makes sense if that automation is partially the cause of the poverty (through job loss).
Like store clerks used to be fairly high skill jobs. If there’s truly no need for lower tier labor we will enter a never before seen economic inflection point, and a race to remove labor costs at every point in the system, because you’ve implicitly suggested we have achieved generally intelligent, physically present ai
There is a qualitative difference between needing to spend 40+ hours a week to sustain yourself versus spending 0 hours. If one need to spend those hours anyways it makes sense to maximize the income from doing so.
It may take a generation, but I think most people would eventually come to the conclusion that the rat race isn't worth it when zero hours is an option.
I think many are quick to conclude motivation is the cause without considering any less visible underlying reasons that cause people to be in those situations.
Things that I typically read:
- the lower class struggle even to sustain themselves for days/weeks in between jobs
- in the middle class there is people who fear not having health insurance in between jobs
How can one survive in US without any job at all? US's welfare is radically different from Denmark's.
People who are out of work for short periods of time may not be familiar with all of the various programs and how to sign up for them, and it may take some time to do so. They may also have budgeted their expenses with their employment income in mind. This is why things are particularly difficult for people who intermittently lose their jobs.
But in general, anyone who finds their income unexpectedly unstable or close to the minimum amount necessary to meet their expenses will have a tough time, no matter where that income is coming from, or what value it is.
Moreover, why does that matter at all - how is it fair to those still working, who are forced to pay for those who don't want to? I'm all for welfare - helping people in need. But I'm not going to fund someone's lifestyle.
With the cost of childcare these days, staying home to earn $28,000 in welfare instead of working a job making $30,000 isn't laziness, it's a no-brainer. You have to consider the non-monetary "income".
$28K < $30K is the wrong math. It really is: $28K + 2000 hrs of opportunity cost > $30K
And to your second point: being fair is not the only reason to have assistance programs. Even if I don't think assistance programs are not fair I still support them so that there is less crime in my neighborhood, etc.
But I disagree with your comment on the second point. As I said, I'm all for welfare/assistance given generously to those in need, but that's different from funding non-working lifestyle of those who have good working options and simply don't want to work.
Some part of UBI might overlap with the welfare part, but it's going to significantly increase the number of people who don't work just because - and it's not fair to fund that from the money made by those who work, and especially not fair to take it from those who must work because UBI is not enough in their situation.
UBI could be funded from sources like sovereign funds - why not. But let's not take money from people who need it just so a group of people can quit their job. Classic welfare at least says that those who receive it need it more that the person that pays.
I don't really know if that's worth worrying about. We're not living in a subsistence economy where if someone isn't carrying their weight the whole tribe dies. I think it's perfectly acceptable to have a certain amount of non-participatory portion of the population, we should make sure it doesn't get to the point of unsustainability but trying to police absolutely everyone in society is a recipe for disaster.
> But let's not take money from people who need it just so a group of people can quit their job.
The people who need that money aren't going to bear the majority of the burden - when you get down into the range of poverty wages people are already exempt for non-transactional taxation and end up receiving more money than they pay. I don't think it's fair to paint any new expenditure as "But how will the poor bear this cost" - when, in the end, the middle and upper classes are where we look to for funding.
The 1980s perpetuated the idea of a "welfare queen" that we should all be really mad at - there are folks that take advantage of the system but it's such a small cost that, honestly, whatever. Most people can't enjoy that kind of a lifestyle so if a few people get to live content lives that would otherwise be ground into the dust I'm perfectly happy for them.
I guess what I’m getting at is that someone options for employment might not make sense given their life circumstances. A good job for someone is not a good job for everyone because of the opportunity cost.
On one hand, we can make our benefit systems so barebones that any minimum wage job is better, even including opportunity cost, but then the people who actually need those programs are starving.
If we make those benefit programs generous to properly support those who truly need it, then minimum wages are going to have to support more than bare survival to be a better option.
It’s really not an easy dilemma to solve because incentives are working against you.
Really, I think the best way to get people off welfare is not to decrease welfare benefits, but increase the incentives to get a minimum wage job.
I'm looking for a job and every time I apply to a job, I have a little voice in my head saying : are you sure you want to work there ? You currently have the opportunity to do what you want and learn whatever you want for free, but if you work there it will be boring af and you will not be able to do what you want.
So currently I'm reading a lot of books, doing coursera course I'm interested in and doing a lot of sport which is impossible when I have a job because reading takes hours just to read one book.
If I work (even part time, I will loose all welfare).
If I find a job I will earn only 400-800E more than I earn with welfare.
But as an average of ~500 euros improvement of my current "salary" and loosing at the same time 40h/week + getting tired and not being able to do intense intellectual things after work I don't know if it's really worth it. And as I said, I "earn" enough money to not have to use my saving.
This article says UBI has been controversial for a long time in Denmark but is on the political agenda again recently:
https://basisindkomst.dk/basic-income-borgerloen-in-denmark-...
Denmark having high tax in general is another story, but at least with UBI not everyone who is getting paid will be thinking "hmm I lose all that income if I take a job, plus I can't be at home so much".
Current welfare systems, if you plot the effective marginal tax rate as a function of gross income (i.e. if you earn one more dollar, what percentage of that dollar does your net income increase including all government systems), have by far the highest marginal rates for the lower incomes. With the marginal tax-rate actually generally decreasing as your income increases. Notably in some broken systems (like the Dutch one) there can be cases where your marginal tax rate is above 100%.
Note that the tax burden ratio [(gross income - net income) / gross income] as well as the actual tax burden [gross income - net income] still increases with as gross income increases. If you graph the tax burden as a function of gross income, then the marginal tax rate is essentially the slope of this plot.
Importantly, it is the marginal tax-rate that affects a rational actor looking to weigh whether it is worth it work harder to earn more money. Hence very high marginal tax rates are very discouraging to working more / harder / trying to become more productive.
Often the way that welfare is implemented is that if you can't work, you get welfare. This seems like a really obvious, logical, good idea. But there's a trap (a welfare trap!). Because on the other side, when you start working again, you stop getting welfare. And your net income might actually go down.
A rational actor might therefore end up stuck in this local optimum where they stay on welfare and never start working.
One argument for UBI is that it eliminates the drop in income associated with the return to work (because you get it unconditionally: whether you are working or not) . A theoretical prediction might therefore be that more people would work if UBI is available.
In practical tests so far this doesn't seem to have quite panned out. This is due to UBI having multiple effects simultaneously. However, I would be most amused to see if in some situations this does became the dominant effect, and the number of working people went up.
If I guessed correct, then the Danish is significantly different from UBI, because that system discourages working. Starting work means losing your welfare. Or at best every euro you earn from working is subtracted from your welfare. Besides that, in such systems you need a complicated bureaucracy to figure out who should and should not get welfare. This bureaucracy needs to contend with fraud, and is probably rewarded for giving as few people welfare as possible. This leads to a bureaucracy that is somewhat hostile to those it is meant to serve.
With Universal basic income, you lose the discouragement to work. You lose the very complicated and hostile bureaucracy (with exceptions for emigrants and immigrants probably). And you lose some of the political pressure to cut welfare, because everyone gets UBI so there is less jealousy.
In the Netherlands there have been cases of people on welfare needing to pay back thousands of euros because sometimes their mother did groceries for them. That was officially 'income' they failed to declare, and therefore their welfare was retroactively cut. That is just inhumane, and stupid. It means anyone on welfare who cannot make ends meet cannot ask anyone for financial help, because that would cost them their welfare.
Now, that being said, I don't believe he represent(ed|s) a majority and actually I am in favor of a UBI. I have friends who I believe it would help out tremendously.
However, I really wish we would get universal HC first. HC expenses, in the not too distant future, will create more hardships than a lack of UBI ever would. And ALL people deserve good healthcare.
I therefore think its impossible to test UBI on the scale of the US for example.
It shook up the labor market and now you've got worker shortages. People aren't working unless they have to. Everyone has to offer more money.
I'm.happy about all this BTW. But it certainly goes against the claim in this article.
I really wish it was as simple as give people money and we will get economic development across the board, if that was the case a lot of sub-Saharan africa wouldn’t be in the situation it is right now.
I used to believe this, based on the last 2 years I no longer do. I hope we get to a basic income state so that we change what motivates people to work (from push to pull) but I still maintain a large number of people will choose not to work if they can achieve their personal level of comfort with a basic income.
The fact that they don't define this (apparently) biased conflict, nor link to the actual study makes me immediately question the impartiality of any research.
We also just ran a real world experiment where many of the jobs in question here where impacted by covid and individuals got a flat-rate government cheque, and they DID stay home rather than go back to work the same job once restrictions where removed, so I question any outcomes from a set of behavioural studies that discounts the suppression on low-paying positions.
Money, besides being a motivator is also a signal to markets on what people want.
I would certainly spend at least a month goofing around. Maybe two. Maybe I'd become a freaking train driver, who knows. Take up a shitty job, blog about it without fear of being fired. Or maybe I'd decide that I should spend the rest of my life goofing around. How should I know? Give me my money and see what I do, not what I say I'd do.
Its crippling knowing that you only have a little bit of money and you need to determine how much a sunk-cost-opportunity is worth -- meaning:
"I have $100, and I do have expenses - but in order to interview for [JOBS] - I need to be able to get to and from, put gas in car/pay for transport, and know that I can still feed myself/dependents && be able to absorb the cost of the interview if I dont get it -- AND have money to make it to the next interviews"
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Everyone focuses on the lowest bar "these ghetto people wont work if we give them money"
FUCK YOU i you think that the only people who NEED such assistance are ghetto poor people who want to milk the system.
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What about having employers cover the costs of actually interviewing with your company? If it costs one $50+ just to get-to-and-from an interview inclusive of time -- then some people will struggle to do so.
That's not really for research. That's for something we can call data laundering. It's like money laundering but for data. Now politicians will use articles like this to sound scientific and data-driven when proposing their policies.
In reality they are quoting an article that quotes a paper that uses a horribly designed experiment with zero scientific rigor. But voters that don't pay attention will never get to know the flow of the data from the fake research to the politician taking their money away. Hence the data laundering.
Many people are driven by more then just money. Tbh. I don't know if anyone would become a nurse in a hospital for monetary reasons (if they have another choice). Or a care taker of old people. At least where I'm from. (As it's severely under-payed for the work you do.)
Similar a lot of people love to compete with wearing brands, having fancy things or having the harder to get in job.
A lot of people are prevented from being able to do what they want because of money. Sometime because they can't afford to take some time off for education, sometimes because the job they want to do doesn't pay well.
So I'm sure you can have a well working society with basic income.
We had guys working for $18 quickly so the math and figure out they would make $24 an hour not working. And they did. Our CFO took covid very seriously and laid them off or did whatever we had to do do they could take advantage of this.
We’re still having trouble getting people to fill those positions now even that the rates are back to normal.
Three guys I know of all started working construction and were being paid cash under the table. So making the $24 plus the cash, and are still doing that. So… I’m not sure about this whole thing.
Getting paid $5 to do a boring task for an hour is a totally different ballgame than getting paid $100 for the same. Even moreso after you've done it for 100 hours. And in the context of a a person who is visiting a research lab the incentives to keep participating in the potentially "interesting game" are different than real life.
Because in the job market, wage signals work like price signals in other markets: they incentivize people to move in the direction most valued by the economy. Like IT right now.
So we may be doomed to a society of grasshoppers with nobody willing to be the ant - like in the old fable.
Regardless of UBI there will always be locations that will be more popular than others. I'm not saying everyone wants to live in San Francisco or Manhattan but I don't think supply will always exceed demand.
Assuming this there will be regions where demand for housing exceeds supply. So naturally the price of rent will go up. In some places that means you will have to find a job in order to be able to pay rent. At this point people are again subject to the current patterns of exploitation.
Sure if you can't make rent in one of the coastal cities you can always move inland and have a nicer life but even leaving money issues aside there are so many factors why people are not willing or even unable to move (proximity to family and friends is a big deal).
All that is to say, before you can even think of a UBI you will have to first solve the housing crisis because at best UBI will mitigate it. And this is just one example (cough health care).
1. I want to work on interesting problems
2. I will not give my life to a company, ever again.
In other words, I'm waiting for companies to start offering 30-hour weeks, 4 day weeks, 60 days unpaid time off per year etc.
For now, I'm returning to "regular" work. However, whereas in the past I worked through months of stressful bullshit caused by bad management, toxic colleagues and unpaid technical debt, my future willingness to work will be based on job satisfaction. If my job isn't making me happy, I'll try to fix things for a while, but if things don't get better quickly, I'm gone.
The most recent American cash handout is the closest we have come to a large scale UBI and it does exactly what we expect humans to do - follow Maslow's pyramid.
Still no research paper found from this Google-Fu.
Also enhanced unemployment during the COVID-19 pandemic basically proved nationwide that it would create pockets of the economy where people would literally just not work because you would earn more versus going back to work.
Wouldn't you do the same if your unemployment exceeded current market software engineer rates and any rate people offered you in the market? I would. I definitely would. I would work on my own projects while being funded by the state.
Isn't this something you could just ask people?
These opinions are often held by the same people.
> would not reduce people’s willingness to work
> The psychologists also found an indication that people with a basic income look for work that suits them better.
Note how the authors use the word *willingness" to work. 0 people want to clean toilets or public restrooms for a living. Or be waiting staff at a restaurant. Yet those "grunt work" jobs are often formative in developing grit, social skills & long term prioritisation skills (instant gratification vs. long term payoff). I shudder to think what the consequence would be of participating in a society where you are free to skip the "hard stuff" because it's inconvenient.
What about losing a friend? Learning who you are in relation to your parents? Attempting to cooperate with a partner? Sacrificing your goals for your children?
Life is much richer than the lessons learned by doing menial labor.
Without a strong incentive for reciprocation we are solving half of the problem, while ignoring the negative consequences.
In a way it’s similar to how large mental institutions were closed in the US (the idea that had some merits), and now just ignore people with severe mental problems until they either injure themselves or someone else.
If I see them stand on a stage and tell grandmas they are going to end social security and Medicare - but will send everyone a check for $1000 instead, and I’ll think they are serious about UBI as an economic solution, but “we’ll also end other programs someday” isn’t the leading bullet point.
some of these are lesson we can maybe stop teaching.
For example, I could imagine less desirable jobs would see a drastic increase in market wages because there would be less people in the position of needing to take any job they can get to scrape by. Undoubtedly a good thing!
However, if it costs more money to get basic things done like cleaning and stocking grocery stores prices would inevitably increase to compensate for the added labor costs. How long before the basic income is not enough to cover basics and then it is increased? The whole process then repeats.
So sure, people still work and occupy their time but are they doing things that are valuable? Am I missing something?
EDIT: Actually I don't know if Bezos optimizes his own productivity or not. Nevertheless, his own productivity is a drop in the bucket compared to the thousands who work for his companies.
Tell me you're an American without telling me you're an American. :)
Thomas Piketty wrote a book on this topic (which I highly recommend) called "Capital in the Twenty-First Century".
There's more than enough for everyone.
Society isn't going to collapse if someone doesn't want to work 75 hours a week at three different bullshit jobs.
Previously job programs were giant public works projects, like building the Hoover dam. Today, with computers it would be easy to give any person a job, right out of their own house.
I do like allowing self motivated people to create their own jobs, and that should be factored into this kind of program.
One wonders what he was seeing.
I used to know a fellow who would get himself laid off as soon as he'd worked long enough to qualify for unemployment. Then he would fail to get a job until the unemployment ran out, then he'd get a job. He lived for many years like this.
He had no interest in working. He was quite open about what he was doing.
Whether it’s China or Crypto, it seems like the reign of the PetroDollar is coming to an end, and with it the easy access to money printing.
Also any debates on UBI typically start with a country-centric view (US in this case), but what will be the implications for the rest of Earth citizens who live in countries without UBI?
It takes a relatively small slice of a billionaire's power to destabilize national leadership, a process that I assume isn't just happening in the US butt around the world. This doesn't even include the fact that Facebook is a near-optimal propaganda tool in protecting the wealth of the people who rule over changes to the way it runs.
Eventually austerity measures will come, and it's unlikely it will be the boomers who pay for it but the younger generations.
I get the feeling this is an experiment, though I would expect better of a university like Leiden.
You don't see that effect in the small-scale experiments, because they are too small to affect economy as whole.
If I recall correctly, the per-capita share of the US budget individuals are responsible for, if we split it evenly between every US resident of age, is (very) roughly $10k a year.
I currently pay above $100k/year in federal taxes; about 10x my share.
How much does the person “following their passion” pay? Are you really self-sufficient if you rely almost entirely on the largesse of others to fund your society?
It turns a defensible but also boring claim into one that draws attention, but is as good as impossible to defend.
I think that, looking at pensioners, UBI will lead to people working less. Many of those who can afford to happily are unemployed.
How many people have quit working as soon as they are able?
It is essentially the same question and the answer appears to be quite a few, with a few odd people who are unable to do nothing.
It's like minimum wage except the government funds the difference, and unlike UBI you still have to work to earn it, which seems to be a prevailing concern ITT.
From the article:
> De Kwaadsteniet: ‘In the condition without social security, the test participants didn’t receive a basic sum. In the benefits condition they received a basic sum, which they lost as soon as they started working. In the basic income condition they received the same basic sum but didn’t lose this when they started work.’
They test for 3 scenarios, but they miss the 4th NIT scenario, in which the "basic sum" would only be granted _after_ they get a job.
And you can even see on wikipedia that:
> Therefore, a family with $0 income would be entitled to receive $1500 in subsidy.
Actual basic income experiment: the large amount of money given to Americans during the pandemic and subsequent labor shortage.
My concern with UBI is more that we're unlikely to be able to fix it if it's actually terrible - once in place, handouts tend to become sacrosanct regardless of efficacy (I'm sure that are exceptions that prove the rule ;) - and it is stupendously expensive.
How about Universal Basic Assistance instead?
We tend to make government assistance be "hard shell, soft center", i.e. hard to qualify for, but once you're in, it's all gravy, unless you do something silly like get back on your feet (see unemployment & disability).
What if we instead switched to a "soft shell, firm center" approach and made it really easy to access assistance funds, but they e.g. got gradually reduced over time as you tap into them? And perhaps you have some skin in the game with a required personal emergency fund? And perhaps you owe some of the assistance $$ back, so that the average person "pays for themselves" over the course of their life?
Just spit-balling. I'm sure there are tons of problems with such an approach as well. But maybe it would still be quite useful for the recipients, and a lot more palatable for the tax payers = more reasonable to actually implement?
Will those folks get UBI too?
Look: we just went through a massive worker shortage caused by overly generous stimulus benefits and rent subsidies. Have we forgotten already?
What am I supposed to believe? A microfoundations paper from a field with infamous replication problems on one hand, or, on the other hand, common sense and my own lying eyes?
Of course UBI would reduce propensity to work. Only people with an axe to grind can seriously believe otherwise.
Maybe all these people don't want to work these kinda of jobs and are moving into other sectors.
Maybe working conditions and pay need to be drastically improved in those jobs.
Honestly, yes --- not always, but frequently.
I am sick and tired of the mentality embedded in the sentence I quoted. Do you think the rich are rich for no reason at all? That their rewards are unfair?
Success is not the universe sprinkling good fortune on mankind at random: success comes from hard work and the courage to take advantage of the opportunities that time presents to everyone from time to time.
Let's be honest with ourselves for one and acknowledge the connection between teachable personal qualities and desirable outcomes.
No, social immobility and generational wealth transfer.
> That their rewards are unfair?
Often, yes.
Also, yes the rewards are unfair, life is extremely unfair pretty much all of the time.
My answers had a commensurate level of respect to the questions.
The prime minister of Canada is not rich and powerful because he worked hard enough as a teacher. He became a teacher because his former prime minister dad set him up very well, with nothing else to do but fuck around doing dumb peasant things. Ya, he worked hard, but never had to worry about anything from day 1. His former prime minister dad only did the exact same thing after his dad made a ton of money in oil and gas.
Elon Musk's dad was a literal explorer who made his money in... mining.
The poor work very hard.
> and the courage to take advantage of the opportunities that time presents to everyone from time to time.
It's very easy to take risks when you can fall back on mommy and daddy's wealth if something goes wrong. It's easy to grab opportunities when mommy or daddy can co-sign your loan or put up the downpayment.
Those things are true even moderate amounts of stability or wealth.
I make six figures and hardly work at all. As a dishwasher I used to bust my ass and make 7 dollars per hour. In my experience, the less you work, the more money you make. Everyone I've talked to in real life, who has worked both shitty jobs and high paying jobs, has the exact same experience.
Yes. Yes it is. For every successful person in the world, there are dozens, if not hundreds, of people with just as much courage, work ethic and intelligence who didn’t get the same opportunities presented to them.
Do not mistake this position as “it’s unfair that everyone isn’t successful”. The world does not distribute potential equally. What I’m saying is that there are further barriers, completely out of one’s control, that can keep worthy people from success.
I’ll tell you a secret: rich people don’t work. Most rich people just work enough to maintain their wealth. You just don’t see them because there are not CEOs or celebrities.
I don't believe poor people are lazy. I think it's just very hard to make the mental shift needed to pull yourself out of that situation (which they are likely not even capable of doing on their own without help - very few are).
This is just my personal opinion, but people need more than money thrown at them. They need help. If we are going to help the poor in society it's going to take time investment and personal relationships. That's what so few in America (even myself, I'll admit it) want to hear.
Nope we haven't. We just paid attention to the facts:
Some states turned down additional unemployment benefits. Those states continued to have same employment issues as the states that maintained benefits.
So clearly the issue was not the unemployment benefits.
We have trouble paying for existing budget items.
Would an existing budget item be cut or would new taxes be needed?
So that was pretty easy to disprove.
Also give ppl free money the a good majority will not work ... I'm sure there's a lot of ppl who got free money from the govt during covid and have yet to go back to work when there's lots of jobs as well wage increases. We can argue that $15 an hour to work at a convenience store isn't great but every human if not mistaken can go to school and educate themselves ...work hard to better themselves. Some it's harder then others and that's where social ideologies need to be most focused on! Not giving free money or ignoring criminal activity... some images of the US as of late are starting to look like Venezuela.
I'm not sure how it's going down in other countries, but in Canada we've had an unintentional experiment with this due to the pandemic. Our economic relief package allows people to collect government insurance if they're out of work due to Covid. But unlike traditional employment insurance, everyone gets the same amount, and that amount turns out to be more than you could make working full-time at minimum wage.
Now, full disclosure, I'm unabashedly socialist in my leanings. I want UBI to work. I also don't believe that a person's value should be determined by their output. So I'm the last person to be against Basic Income.
However, we have to look at the results. And the results in Canada are that it's almost impossible to hire enough people to work those entry-level roles anymore:
- In my home city of Sudbury, the school bus companies are now offering a $2k signing bonus plus several dollars above minimum wage to attract drivers. They still can't get enough drivers and we're dealing with rolling daily bus cancellations as a result.
- As a hiring manager myself, I've found that jobs that used to get an abundance of high-quality applicants are now getting almost no qualified applicants at all. We're offering starting wages that are, in many cases, $20k more per year than they were a decade ago, and $10k more than they were 2 years ago. This is in a market where the average household income is well under $50k.
- Unemployment rates are higher than they've been in a long time despite the fact that job vacancies are higher than they've ever been.
Now, we can argue back and forth about whether the above is an acceptable trade-off for all the benefits of UBI. But my experience very much suggests that basic income does indeed reduce people's willingness to work.
I’m sure this wasn’t done in the field or over an extended period of time.
The only way to truly observe the effects would be historical analysis of similar conditions like unemployment or in extreme cases, socialism.
Such things are fairly well documented and don’t require branches of philosophy to run pseudoscientific studies on
It would be ok, if UBI was also Unconditional, but I'm confident no one will dare to make it so after the recent global event.
Philosophically, I believe that UBI is at some level a question of whether or not free markets actually totally work, because a truly free market is one where people are not forced to choose between bad options -- where they're not being coerced by wage slavery, where they have a choice whether or not to participate in the market itself. So I have personal stake in this, because if UBI gets proven not to work, it then leads me to ask uncomfortable questions like, "is a truly free market actually possible?" Which I don't want to think about. I want UBI to succeed.
But having said that, this is one study undertaken by a small group of psychologists, and it should be viewed through that lens. I understand it's simpler to just say their conclusion in the title, and it doesn't break any site rules, but it misses that every study on UBI is an approximation of what UBI large-scale implementations would be. I feel like people look at isolated experiments with a lot more confidence than they should. I don't like when individual studies get framed as, "this proves X".
It's extremely difficult to reason about what the long-term impacts of UBI will be using short-term studies because people's long-term patterns often differ from their short-term patterns. I do think we should be experimenting more with UBI, I think it's good that this study was done. I'd like to see more studies like this, more real-world tests, and in instances where UBI doesn't work I think we should keep trying different strategies to make it work, because a world where people have universal stability is preferable to a world where they don't.
But it's important to keep in mind that this study doesn't really prove anything, it's just another data point. We don't actually know whether or not basic income would reduce people's willingness to work long-term, this is one data point that suggests it might not.
This pops up in a lot of areas (UBI, inflation, etc) -- basically anything involving the economy. People get very confident about things based on a few data points, and then we get threads talking about how people are 100% certain that stimulus checks caused the chip shortages or some crud. Just make sure you're taking a step back and thinking about these things like a Bayesian, economics is heckin complicated, and I think complicated systems like economics are particularly susceptible to the falacy of, "I've done several hours of research on this, maybe even a full day, and therefore I have a complete, fully formed theory about the entire system works that I will treat as fact."
I personally know several people who received sizable pandemic aid and have said, explicitly, that they are not bothering to look for work until their savings from the received aid runs low.
This is just very basic common sense. Work is often not fun or easy. So, if you’ve got free, no strings attached money coming in, why bother working?
Which is why it will never happen.
I lurk on the 'hood'/gang subreddit for the city, and the general consensus there is that the stimulus checks are the reason for the upswing in homicides, which shattered the all-time record this year to over 550, meaning that the murder rate in a city of 1.5 million is now 1/3000 per annum, and far higher if you're of a certain age group in certain neighborhoods.
The reasoning is that cliques which were previously only able to afford one gun for the whole squad can now afford lots more guns, enough for everybody to have their own, and those guns are being used as tools for acquiring even more money.
I think the lesson is strong rebuttal the libertarian argument that basic income can replace a functioning social state - a functioning society requires a lot more hard work than overnight helicopter money.
Seems like a more valid experiment to me.
Also keep in mind that during this time period many schools were closed, so some of these people were staying home to monitor their children, not just "deciding not to work". Parenting is labor.
Are you friends with any roofers?
One reason the pandemic has lasted so long is that we've refused to take difficult measures, so instead we drag it out and people keep getting exposed. There are countries on this planet that have gone back to normal without these issues, because they took more difficult measures early on.
My politics have nothing to do with it. I know roofers, roofing company owners, general contractors, construction workers, and others. I am a contractor, and I'm struggling. It's fine
UBI would require complete restructuring of income taxes and benefits. Everyone would receive a fixed sum every month, standard deductions and other common deductions/tax credits would go away, and you would pay something like 40-50% combined income/payroll tax for every dollar you earn.
A large part of the problem that UBI was envisioned to solve is that means-tested welfare systems can find a steady-state equilibrium as poverty traps (as you noted, if you lose your welfare upon getting a job, the welfare support itself becomes a disincentive to working).
Everyone enjoying the lowering of standards? Higher food prices, and just general decline. Should we keep going until people are waiting in lines to buy food. Because this is how we get there.
UBI is the government distributing money to people. Normally the government spends money on behalf of people who are expected to contribute toward repaying it. A simple way to reduce the cost of UBI is to have it reduced by the cost of ALL government services you elect to use.
Assuming such a UBI covers basic needs, eliminate minimum wages. Wages no longer need a lower bound as everyone has sufficient income.
The root problem is an unfavorable distribution of wealth and income toward asset holders. Stop taxing labor.
Companies need to broaden the distribution of wealth gains- the plumbing for this is still uncertain.
"The root problem is an unfavorable distribution of wealth and income toward asset holders. Stop taxing labor."
The problem UBI is trying to solve is one where more and more people will become unemployed because of automation. It is not trying to level the playing field.