5 ms·

> I would like Basic Income to be a bit more than $10,000 per year, though. Well, that's one of the major problems with this scheme: a whole lotta people will

by xienze 11y ago

> I would like Basic Income to be a bit more than $10,000 per year, though. Well, that's one of the major problems with this scheme: a whole lotta people will as well. In much the same way that we currently hear "I can't raise my family on minimum wage!" we will hear "I can't raise my family on my UBI!" Anyone who can't see how UBI increases will become a promise of every presidential hopeful hasn't been paying attention. When the people realize they can vote themselves money... something something, I can't remember the rest. --- I also get a kick out of how people think welfare programs will be eliminated by UBI, and that's why it won't be so expensive to implement. So what happens when someone on UBI has their car break down or, as will often be the case, just flat-out doesn't budget properly and now they can't buy groceries? We're just going to let them starve? Of course not. There will be a safety net below the UBI.

adrianN 11y ago
UBI should increase periodically; tied to economic growth.
- varjag 11y ago
  Does that imply it should be decreased with economic recessions too? Myself I don't really see any long term social solution other than UBI as well. But there are plenty of rough corners like that..
  - SapphireSun 11y ago
    Generally no (because it's a stimulus that can get the economy back on track by creating demand), but maybe yes in some very rare cases of deflation. However, most of the time governments can prevent deflation by printing money. We try to hit an inflation target of about 2% so it's very very unlikely we'd ever decrease it. Japan did (does?) have a problem they couldn't print themselves out of called a liquidity trap. https://en.wikipedia.org/wiki/Liquidity_trap https://en.wikipedia.org/wiki/Liquidity_trap It happened to us in 2008 and continues to be a problem. Disclaimer: Not a real economist.
    - clarkmoody 11y ago
      Widespread deflation would mean everyone on basic income just got wealthier in real terms.

by xienze 11y ago

adrianN 11y ago

UBI should increase periodically; tied to economic growth.

varjag 11y ago
Does that imply it should be decreased with economic recessions too? Myself I don't really see any long term social solution other than UBI as well. But there are plenty of rough corners like that..
- SapphireSun 11y ago
  Generally no (because it's a stimulus that can get the economy back on track by creating demand), but maybe yes in some very rare cases of deflation. However, most of the time governments can prevent deflation by printing money. We try to hit an inflation target of about 2% so it's very very unlikely we'd ever decrease it. Japan did (does?) have a problem they couldn't print themselves out of called a liquidity trap. https://en.wikipedia.org/wiki/Liquidity_trap https://en.wikipedia.org/wiki/Liquidity_trap It happened to us in 2008 and continues to be a problem. Disclaimer: Not a real economist.
  - clarkmoody 11y ago
    Widespread deflation would mean everyone on basic income just got wealthier in real terms.