3 ms·
If you set UBI as inflation-adjusted, then there is no viable political mechanism to reduce it. "Cut everyone's income!" is a losing political message, forever
by millstone 6y ago
If you set UBI as inflation-adjusted, then there is no viable political mechanism to reduce it. "Cut everyone's income!" is a losing political message, forever ever.
Inflation is the pressure release valve that allows quietly cutting real costs. Every employer, business, government relies on this. It's why the Fed targets low but positive inflation.
- apexalpha 6y agoI don't know. In Europe almost all of these things (welfare, social security, minimum wage) have been tied to inflation since forever. Sometimes they get cut, sometimes they get raised.
- account42 6y agoYou "reduce" UBI by increasing income taxes - that way the reduction only affects thos who can afford it.
- fvdessen 6y agoIn Belgium a lot of stuff (salaries, rents, social welfare) is tied to inflation, and sometimes we do 'Index Jumps', where we simply don't index for a year.
- isolli 6y agoBelgium is fairly unique in that respect. If I remember correctly, it also takes into account the evolution of salaries in neighboring countries (France, Germany) when deciding collective salary increases.