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Unemployment checks usually stop once the person has a new job. UBI does not. It does not create an incentive to stay jobless, or does so to a much lesser degre
by sergiosgc 8y ago
Unemployment checks usually stop once the person has a new job. UBI does not. It does not create an incentive to stay jobless, or does so to a much lesser degree [1].
If I get $400 in UBI and $500 in salary, the only loss is that I am paying higher taxes on the $500 than I would be in a non-UBI society.
This behaviour also results in the fact that, even though taxes are higher, those in the lower revenue rungs still come out ahead in an UBI society vs a non-UBI scenario.
[1] There is a minor incentive caused by the decreasing utility value of money: The first $100 you earn are much more valuable than the $100 you earn on top of $5000. UBI moves the salary revenue a bit up in this scale, thus making it less valuable.