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UBI comes from tax money though. If the idea behind UBI is that people don't need to go work, and won't go buy McDonalds anymore, then tax income is going to pl
by jganetsk 10y ago
UBI comes from tax money though. If the idea behind UBI is that people don't need to go work, and won't go buy McDonalds anymore, then tax income is going to plummet. If tax income plummets, what pays for UBI ?
People will still have the same incentive to work they always had (to make money) -- but some people will quit jobs they don't like, which will drive wages up (due to falling supply in the labor market). But the reason why UBI is so interesting now is that, with increasing automation, increased wages will have less of an impact on general prices. So prices will hold steady, as people continue to go to McDonalds.
Note that there are other ways to collect tax revenue: sales tax, VAT tax, property tax, wealth tax, etc.
UBI can only succeed if people continue to consume, preferably at higher levels than currently
What basis do you have for saying this? Deflation may actually be beneficial in a basic income scenario (falling prices makes a fixed basic income worth more).
If UBI encouraged too large a portion of the population to pursue non-taxable income (say, making art and games and giving them away for free because they don't need money), then UBI would collapse from lack of income.
Why would they give it away for free when they could sell it for money instead?
- benologist 10y ago> Why would they give it away for free when they could sell it for money instead? I think the entire line of thinking is a bit flawed... UBI isn't about making sure any thing we do for money today remains a skill that anyone else will pay for. Like with open source some software will be given away, most software will not exclusively solve a problem or even do it well and complex problems will still require paid collaboration to produce complex software.
- solotronics 10y agoI think there is a third path that could work even better. If you think about how money really works it first goes to those the bankers deem most worthy. Tech founders, producers of fine products, schools. It flows down a cascade of people's perceptions. If you really think about it money does not necessarily go to that which benefits society as a whole, it does somewhat, but it really the majority goes to those that have the perception of being the best from the perspective of a small subset of society. Possibly a more impartial and scientific method of deciding who gets money would be more beneficial instead of the whim of cabals of bankers.
- nercht12 10y ago> People will still have the same incentive to work they always had (to make money) -- but some people will quit jobs they don't like, which will drive wages up (due to falling supply in the labor market). The market is already "suffering" from labor shortage, but it's just a cover for companies to demand more H1-B visas. Seeing jobs Americans are perfectly good at doing go overseas says American labor isn't being cut for quality or demand, it's being cut out for cost.
- vosper 10y agoHow do H1-Bs send jobs overseas? The visa brings people into the US. They pay taxes, and many go on to become Americans (or try to).
- hx87 10y agoYou're right. What H1-Bs do though is allow companies to replace a worker with full mobility and bargaining power (a US citizen) with one who has limited mobility and bargaining power, which drives down industry wages. Now, if the visa were attached to the person but not the company and were valid as long as the holder has a job, this would be much less of an issue. Give immigrants the same bargaining power a citizen has and both would benefit.
- z4chj 10y agoWhat is to stop the corporation from raising prices? McDonalds management will still hold their obligation of creating value for its shareholders
- mattm 10y agoThe market. No one is going to pay $30 for a Big Mac.