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Look at Alaska which has a long-term state-run form of UBI. It's about $100 per person per month. Even at such a low amount, to your point, it creates some me
by nugget 9y ago
Look at Alaska which has a long-term state-run form of UBI. It's about $100 per person per month. Even at such a low amount, to your point, it creates some measurable inflation and other distortions in the market. UBI may only work as a low, supplemental amount to start, so it could be a fair analog. The idea that we'll start with UBI that's enough for each individual to rent a studio, cover transportation costs, and put food on the table seems improbable.
- vkou 9y agoDistortions in the Alaskan market happen because everything in the far north costs a lot more labour/energy. This is due to economies of scale, the inhospitable environment, and the need to ship in pretty much everything necessary for human life. Government handaouts are not why a head of lettuce in a small town in Nunavut can cost ~$15.
- nugget 9y agoYes, that's true. There are other Government subsidies (e.g. increased payments to medicare providers) meant to offset the costs of operating in that environment. What I meant was that within these "permanent distortions" of the market, there are short-term observable trends around the time of the APF dividend (an annual payment) is distributed, e.g. I believe something like 30% of all sales in certain (rural) areas occur in the 30 days following distributions. My larger point was simply that 1) the APF is an important source of income for many cash-poor Alaskan families, 2) Alaskans generally seem to have faith in it's sustainability, 3) there's 30+ years of good data around distributions and economic activity, and 4) as such, it seems like both the best proxy we have for UBI and its potential effects.