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> researchers found no evidence that any of the payments discouraged work or increased purchases of alcohol — two common criticisms of direct cash giving. In fa
by mypastself 3y ago
> researchers found no evidence that any of the payments discouraged work or increased purchases of alcohol — two common criticisms of direct cash giving. In fact, so many people who used to work for wages instead started businesses that there was less competition for wage work, and overall wages in villages rose as a result.
The only part of the article that addresses pros of handouts in general.
Surely the outcome would be the same (less competition for wage work because of fewer workers, resulting in higher average wages) if all the recipients stopped working outright?
The article (or any of the linked ones) doesn’t seem to provide data on how many recipients started a business versus how many left the workforce. If the business founders were indeed very successful, that could instead be used as an argument for encouraging enterpreneurship. Perhaps through lower taxes?
- bigfudge 3y agoThere is not much evidence cutting taxes increases entrepreneurship. It’s much more plausible to me that UBI would have a much more proximal impact on the desire to start a business.