3 ms·
Here's another simple example. Let's assume that basic income will cause net income to go up for the poor (otherwise, what's the point?) But let's also assume
by jganetsk 10y ago
Here's another simple example.
Let's assume that basic income will cause net income to go up for the poor (otherwise, what's the point?) But let's also assume that prices on certain goods will go up (a totally reasonable assumption).
Then let's measure wealth in terms of "Big Macs". As in, how many Big Macs can you buy in one year? If basic income causes this number to go up for you... then you've benefitted from basic income, regardless of how much the price of a Big Mac increased.
If your income goes from zero to non-zero... you definitely benefit. Because with zero income, you can buy zero Big Macs. But with non-zero income, you can buy non-zero Big Macs... no matter how much the price of a Big Mac goes up. And the number of Big Macs you can buy will be greater than one... Big Macs won't cost $12,000 in this scenario. That would be ridiculous.
So we can use this as a framework to analyze how basic income impacts society. Then it is obvious that basic income benefits the poorest in society. But you are right, it may harm some people. However, it requires a much more rigorous analysis than you are providing.
- DougN7 10y agoWith that thinking, the government should just turn on the printing presses and hand money out. People who had zero now have non-zero. Surely Big Macs can't go to $12,000, right?
- jganetsk 10y agoYou haven't read the article. Printing presses are not in consideration here. The whole point was that basic income is redistributive: basic income is financed by income tax.
- DougN7 10y agoI wasn't saying the article said printing presses would be used. But taking money that wasn't being spent (all that money corporations and the rich have stowed away) and giving it to people that will spend it is equivalent - lots of money that's not in circulation entering circulation. You end up with more money in circulation either way, with the ramifications that come with it (inflation).
- stale2002 10y agoNo, you don't turn on the printing presses. You take the money away from someone else.