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The failure mode is that rentiers and middlemen will eat up all of the UBI income, leaving most people’s material standard unchanged. Given the state of healthc
by claudeganon 7y ago
The failure mode is that rentiers and middlemen will eat up all of the UBI income, leaving most people’s material standard unchanged. Given the state of healthcare and housing in the US, this doesn’t seem an improbable outcome.
I’m sure, by contrast, you could do UBI in a country with robust state housing and healthcare programs, like for example Austria, and avoid these concerns.
- erik_seaberg 7y agoLandlords need to compete for tenants. High rents are only tenable in hot employment markets with bad policies imposing shortages. Everywhere else, high rents lead to more construction which leads to lower rents, and the landlord who refuses the going rate sees his units go empty.
- claudeganon 7y agoOk, show me the real world place in the US where this actually holds true. This hypothetical gets touted around, but I’ve never seen it play out this way anywhere I’ve lived. For example, I currently live in a second-tier Midwestern city in the midst of a housing crisis. Wages aren’t great relative to their respective industries, but rents and home prices are still skyrocketing. There’s no influx of new construction outside of the luxury sector in a few neighborhoods, a lot of which sits empty. Meanwhile, existing landlords just collect ever larger checks from their properties without meaningful continued investment.
- erik_seaberg 7y agoAre developers complaining about not getting permits to build more? That's the usual failure mode in cities. Median rent in Toledo, OH is $550/mo. With a median household income of $33,687, renters clearly could pay more, but there's no shortage letting landlords demand more.