4 ms·

The last sentence of the post shows that he has lost all hope of ever coming out of debt. "In a few years, when my son is old enough, I may have to sell one of

The last sentence of the post shows that he has lost all hope of ever coming out of debt. "In a few years, when my son is old enough, I may have to sell one of his kidneys as well,"

mav3rick 7y ago
This is called a poverty cycle. And the current Nobel Prize winners in Economics have talked a lot about this. The foundation of UBI is based on cases like these.
- jacquesm 7y ago
  They typically do that in the context of countries that are already wealthy for those within that country. You would not be able to do UBI at the level of a country the size and state of Pakistan at present unless you got other countries to pay for it.
  - kingludite 7y ago
    Of course other countries should pay for it.
    - imtringued 7y ago
      There is a conflict of interest. Foreign aid won't work because you're effectively paying corrupt politicians to keep their country unstable so that they can collect more foreign aid.
      - yorwba 7y ago
        Foreign aid doesn't have to be given to local politicians for them to distribute as they see fit. You can also pay trusted outsiders to do it instead. And the magnitude of repeat payments should probably depend on how much the previous installments helped instead of how bad the situation still is.
  - andai 7y ago
    The other day I was thinking about the proposed UBI program in the states ($1000/month), and wondered what a difference it would make for the poorest people in the world if the same monthly budget was instead divided between all citizens of the world. It ends up being about than $40 a month, but for people living under a dollar a day, that's a huge difference. Unfortunately there is no financial structure in place yet to deliver UBI to every citizen of the world, but it's definitely something worth thinking about.
    - jacquesm 7y ago
      It would require a world government with teeth to be able to pull that off, Einstein was a famous proponent of this but even he could not make the case convincingly enough to get people to give it a try. https://bigthink.com/paul-ratner/should-we-have-a-world-government-einstein-thought-so https://bigthink.com/paul-ratner/should-we-have-a-world-gove...
    - yorwba 7y ago
      GiveDirectly is experimenting with that kind of small-sum UBI in eastern Africa: https://www.givedirectly.org/ https://www.givedirectly.org/
    - yazan94 7y ago
      I'm no economist, but injecting that much money that fast into an economy opens a whole new can of worms with inflation and currency devaluation right?
      - LadyCailin 7y ago
        Yes, but the net value is increased. It’s because giving $20 to a homeless person has a different effect than giving $20 to Jeff Bezos. The homeless person goes and spends it immediately, whereas Jeff Bezos’ spending habits won’t meaningfully change because of that.
    - Jagat 7y ago
      Enforcement is going to be pretty hard. It's the thing that Bill Gates talks about when talking about philanthropy. If everyone in the world gets $30 - warlords in Africa, and landlords or local gangsters in other impoverished nations with weak law enforcement will easily be able to extract $25/person from their locality as 'protection money'. Now though, if those thugs at the top end up spending that money on local businesses, they're slowly boosting their economy. But they're more likely to buy smuggled German cars, thus evading local import taxes and funneling that money back into the developed nations with zero gain for the local economy. However, what I've stated is the worst case scenario. More likely than not, that $5 left with individuals is quite a lot in most countries and may end up boosting their economy albeit at a lower scale than what was imagined.
  - SkyBelow 7y ago
    >unless you got other countries to pay for it. Well it is Universal Basic Income, not National Basic Income. One of the fun discussions with UBI is seeing people discuss who should and shouldn't get it.
    - jacquesm 7y ago
      All UBI experiments that I'm aware of so far have been confined to a single country.
      - SkyBelow 7y ago
        All the ones I recall are extremely limited on a number of fronts. They limited to a small group of people, for a limited time, and generally the funds are quite limited. I personally don't think these even qualify as UBI because some of the proposed positives for UBI do not exist when it has such limits. For example, if you are only getting UBI for 2 years, you have to plan out for the rest of your life after those 2 years and can't make the same choices as if you were being given UBI for life.
        jacquesm 7y ago
        Fully agreed. UBI simply has not yet been tried on a scale and over a span of time that it would qualify as a real trial.
- mc32 7y ago
  Some middle eastern countries, like Qatar, have what amounts to UBI (guaranteed jobs and free basics). It has resulted in what in the west is called the excess and decadence. Without relying on natural resource extraction, I’m not sure it’s sustainable.

The last sentence of the post shows that he has lost all hope of ever coming out of debt. "In a few years, when my son is old enough, I may have to sell one of his kidneys as well,"

mav3rick 7y ago

This is called a poverty cycle. And the current Nobel Prize winners in Economics have talked a lot about this. The foundation of UBI is based on cases like these.

jacquesm 7y ago
They typically do that in the context of countries that are already wealthy for those within that country. You would not be able to do UBI at the level of a country the size and state of Pakistan at present unless you got other countries to pay for it.
- kingludite 7y ago
  Of course other countries should pay for it.
  - imtringued 7y ago
    There is a conflict of interest. Foreign aid won't work because you're effectively paying corrupt politicians to keep their country unstable so that they can collect more foreign aid.
    - yorwba 7y ago
      Foreign aid doesn't have to be given to local politicians for them to distribute as they see fit. You can also pay trusted outsiders to do it instead. And the magnitude of repeat payments should probably depend on how much the previous installments helped instead of how bad the situation still is.
- andai 7y ago
  The other day I was thinking about the proposed UBI program in the states ($1000/month), and wondered what a difference it would make for the poorest people in the world if the same monthly budget was instead divided between all citizens of the world. It ends up being about than $40 a month, but for people living under a dollar a day, that's a huge difference. Unfortunately there is no financial structure in place yet to deliver UBI to every citizen of the world, but it's definitely something worth thinking about.
  - jacquesm 7y ago
    It would require a world government with teeth to be able to pull that off, Einstein was a famous proponent of this but even he could not make the case convincingly enough to get people to give it a try. https://bigthink.com/paul-ratner/should-we-have-a-world-government-einstein-thought-so https://bigthink.com/paul-ratner/should-we-have-a-world-gove...
  - yorwba 7y ago
    GiveDirectly is experimenting with that kind of small-sum UBI in eastern Africa: https://www.givedirectly.org/ https://www.givedirectly.org/
  - yazan94 7y ago
    I'm no economist, but injecting that much money that fast into an economy opens a whole new can of worms with inflation and currency devaluation right?
    - LadyCailin 7y ago
      Yes, but the net value is increased. It’s because giving $20 to a homeless person has a different effect than giving $20 to Jeff Bezos. The homeless person goes and spends it immediately, whereas Jeff Bezos’ spending habits won’t meaningfully change because of that.
  - Jagat 7y ago
    Enforcement is going to be pretty hard. It's the thing that Bill Gates talks about when talking about philanthropy. If everyone in the world gets $30 - warlords in Africa, and landlords or local gangsters in other impoverished nations with weak law enforcement will easily be able to extract $25/person from their locality as 'protection money'. Now though, if those thugs at the top end up spending that money on local businesses, they're slowly boosting their economy. But they're more likely to buy smuggled German cars, thus evading local import taxes and funneling that money back into the developed nations with zero gain for the local economy. However, what I've stated is the worst case scenario. More likely than not, that $5 left with individuals is quite a lot in most countries and may end up boosting their economy albeit at a lower scale than what was imagined.
- SkyBelow 7y ago
  >unless you got other countries to pay for it. Well it is Universal Basic Income, not National Basic Income. One of the fun discussions with UBI is seeing people discuss who should and shouldn't get it.
  - jacquesm 7y ago
    All UBI experiments that I'm aware of so far have been confined to a single country.
    - SkyBelow 7y ago
      All the ones I recall are extremely limited on a number of fronts. They limited to a small group of people, for a limited time, and generally the funds are quite limited. I personally don't think these even qualify as UBI because some of the proposed positives for UBI do not exist when it has such limits. For example, if you are only getting UBI for 2 years, you have to plan out for the rest of your life after those 2 years and can't make the same choices as if you were being given UBI for life.
      - jacquesm 7y ago
        Fully agreed. UBI simply has not yet been tried on a scale and over a span of time that it would qualify as a real trial.
mc32 7y ago
Some middle eastern countries, like Qatar, have what amounts to UBI (guaranteed jobs and free basics). It has resulted in what in the west is called the excess and decadence. Without relying on natural resource extraction, I’m not sure it’s sustainable.