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Low unemployment drives productivity gains that keep wages low and that contributes to increased unemployment. See the cycle play out here: https://fred.stlouis

Low unemployment drives productivity gains that keep wages low and that contributes to increased unemployment. See the cycle play out here: https://fred.stlouisfed.org/graph/?g=pTTx https://fred.stlouisfed.org/graph/?g=pTTx Workers with skills that align add productivity see wage gains. Workers and entire businesses on the wrong side of the productivity wave end up dislocated. I'm sure UBI and other public policy efforts can correct this, right about the time we can control weather, solar cycles and cure cancer. Or, we can just accept there's some things outside our control and plan for the ups and downs.

rexreed 7y ago
Low wage labor and UBI are actually two sides of the same coin. The less that low wage labor is available, the more that UBI would become necessary to support the economy. The more that low wage labor is available, the less that UBI becomes seen as a necessity. The more that UBI is offered, the less that individuals would seek low wage labor. The less that individuals seek low wage labor, the tighter the employment market for such service, which motivates employers to seek higher productivity and automation rather than increase wages, which furthers the cycle above.
- GrinningFool 7y ago
  These things are cumulative, not mutually exclusive. Working minimum wage on top of UBI would put someone in much better position than either one alone. Some people would choose only UBI, but most would want more than that.
  - rexreed 7y ago
    In which case, UBI might increase the baseline for what is considered to be "subsistence". If all are entitled to UBI and can simultaneously earn income on top of that, then the base line cost for goods in demand increases so that all that UBI has done is ratcheted up the baseline for what is considered subsistence, i.e., a form of inflation.
HarryHirsch 7y ago
Look at the occupations predicted to grow: https://www.bls.gov/emp/tables/occupations-most-job-growth.htm https://www.bls.gov/emp/tables/occupations-most-job-growth.h... Nursing and home aides, fast food, janitors, warehousing and trucking - these are all unproductive and low-skill occupations. It wouldn't look that sorry if the country implemented better industrial policies.

rexreed 7y ago

Low wage labor and UBI are actually two sides of the same coin. The less that low wage labor is available, the more that UBI would become necessary to support the economy. The more that low wage labor is available, the less that UBI becomes seen as a necessity. The more that UBI is offered, the less that individuals would seek low wage labor. The less that individuals seek low wage labor, the tighter the employment market for such service, which motivates employers to seek higher productivity and automation rather than increase wages, which furthers the cycle above.

GrinningFool 7y ago
These things are cumulative, not mutually exclusive. Working minimum wage on top of UBI would put someone in much better position than either one alone. Some people would choose only UBI, but most would want more than that.
- rexreed 7y ago
  In which case, UBI might increase the baseline for what is considered to be "subsistence". If all are entitled to UBI and can simultaneously earn income on top of that, then the base line cost for goods in demand increases so that all that UBI has done is ratcheted up the baseline for what is considered subsistence, i.e., a form of inflation.

HarryHirsch 7y ago

Look at the occupations predicted to grow: https://www.bls.gov/emp/tables/occupations-most-job-growth.htm https://www.bls.gov/emp/tables/occupations-most-job-growth.h... Nursing and home aides, fast food, janitors, warehousing and trucking - these are all unproductive and low-skill occupations. It wouldn't look that sorry if the country implemented better industrial policies.