5 ms·
This is a beautiful idea. Replacing the means-tested transfers, such as housing assistance, food stamps, unemployment benefits, etc.etc. with a simple check to
by xixi77 13y ago
This is a beautiful idea. Replacing the means-tested transfers, such as housing assistance, food stamps, unemployment benefits, etc.etc. with a simple check to everyone would provide dignity to all citizens, save on administration costs, remove the major disincentives to work that the current programs create, and even encourage entrepreneurship and creativity, since people would be less worried about their ideas not working out. It would even destroy the rationale behind minimal wage. I would gladly pay more in taxes for all that, although I suspect a lot of the program will pay for itself -- through elimination of all the above, and through the economic benefit of spending.
I do worry a bit though: with the system in place, given how simple and transparent it is, what would prevent politicians from continuously raising the basic income level, until productive work becomes completely unattractive, and the economy collapses? How can that be prevented?
Even though the current welfare systems are horrible in comparison on efficiency grounds, the fact that they tend to target specific small groups, makes it easier to keep them from blowing up.