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The fed does have the ability to control monetary policy. This is akin to why some problems in the EU - individual countries gave up monetary policy rights, wh
by dmoy 2y ago
The fed does have the ability to control monetary policy.
This is akin to why some problems in the EU - individual countries gave up monetary policy rights, which means they have to do what Germany wants w.r.t. the euro. They can't control interest rates like the US Fed can, can't expand or contract money supply, and have fewer tools to deal with problems that arise.
Imagine if NYC couldn't build buildings over 1 story because of a state law. That would complicate adding new residents. It might work for awhile and they could get creative, but eventually it would become untenable.
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This is not all to say that there aren't any problems with UBI specifically. We haven't really tested that level of socialism anywhere with still trying to also do free market and no planned economy.
It could well be that a lot of stuff wouldn't get done, or at least not done as much. There's a lot of shit jobs that are done for cheaper now because people gotta eat & put a roof over their head.
Unless you do a U"B"I solution which isn't actually covering the basics, but is lower than necessary.