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Why does the government have to be an employer of last resort? The government isn't particularly good at deploying labor in an efficient way or directing them t
by bhupy 7y ago
Why does the government have to be an employer of last resort? The government isn't particularly good at deploying labor in an efficient way or directing them to the most productive ends (see: the economic calculation problem).
Instead, it's probably better for the government to be the salary provider of last resort, via some basic income (universal or otherwise) or a negative income tax, and then imposing steep taxes on externalities.
- toomuchtodo 7y agoThis is a fine end state to target between now and some point in the future a UBI is palatable to the electorate. But we're talking about what is feasible today.
- bhupy 7y agoAre you suggesting that reconfiguring our economic system is more feasible than introducing a new redistributive welfare transfer on top of the existing economic system? Keep in mind that we already have a negative income tax in the US: the Earned Income Tax Credit. We're really just talking about expanding that.
- toomuchtodo 7y agoYes. You’re up against deeply seated belief systems.
- bhupy 7y agoI guess we’ll have to agree to disagree here. I think that modifying the Earned Income Tax Credit (which was introduced by Nixon, then expanded by Reagan) by further expanding it, and then removing the employment requirement is a way easier sell to Americans than fundamentally shifting towards central planning.
- toomuchtodo 7y agoWe're already central planning (Federal Reserve unlimited support), I'm just arguing for changing the conditions of operation. Tax policy is insufficient for the effort required IMHO.
- bhupy 7y agoEffort required for what? We are simply talking about the merits of the government being the employer of last resort in the event of economic stress. That’s far more effort than just giving people money. If we’re talking about climate, it’s probably far easier and far more effective to institute steep carbon taxes. It should be very easy to do that especially now, oil is the cheapest that it’s ever been.