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> Obviously a lot of moral hazard issues and complications Yes it would be difficult to implement. You would encourage people to seek higher paying jobs by pr
by nimos 5y ago
> Obviously a lot of moral hazard issues and complications
Yes it would be difficult to implement. You would encourage people to seek higher paying jobs by progressively phasing the wage subsidy out. Or just not phase it out at all. No real difference between the two depending on income taxes.
On the other side you could also target a certain cyclical unemployment rate and have a minimum wage employers must pay that fluctuates with that. That way there isn't an incentive to have "wink wink nudge nudge" pretend jobs.
My problem with the UBI is I think the amount needed to be meaningful (1k+ a month) gives people enough money to check out of society and not be a contributing member. Its super inexpensive to live with friends somewhere kind of crappy and just do basically nothing productive.
- shkkmo 5y agoThe problem with a minimum wage or subsidized labor is that your are dependent on the availability of work for everyone which mandates a constantly growing economy that will destroy our planet. If you are comfortable with fluctuating minimum wage to control unemployment, you could do the same thing with UBI. Personally, I don't think that we should to threaten our citizens with homelessness and hunger to get them to be contributing members of society. I would personally institute UBI gradually, pairing UBI increases with reductions in the minimum wage during economic downturns to stimulate the economy.