Posts Tagged ‘Universal Basic Income’

Is universal basic income the answer?

March 27, 2020

Universal Basic Income as it’s usually presented is a solution to an economic problem that doesn’t yet exist.

The imaginary problem is what happens after automation and computer algorithms make a majority of American workers unnecessary and unemployable.

The real problem is that our present economic system rewards useless and harmful work more than it does necessary work and even allows much necessary work to go undone.

There are a great many unmet needs in society and a great many unemployed people available to meet them.  It ought to be simple to match them up, but it isn’t, not within our present economic and political setup.

The coronavirus pandemic is a great revealer of who’s necessary in our society and who isn’t.  Grocery store clerks risk their lives so that I can have food in my pantry.  Yet as a class they’re on the bottom rungs in pay and social status.

They should get the equivalent of combat pay and maybe a military-type medal in awards ceremonies after the crisis is over.

I do think a UBI could be useful in the present emergency.

Send a $1,000 check every month to every man, woman and child who are willing to pledge to socially isolate themselves.

Send $2,000 or $3,000 every month to those who are doing the necessary work to keep us alive and well—health care workers and emergency responders, farmers and agricultural workers, truck drivers, grocery and drug store clerks, public utility workers, etc.  Shut down everything that’s not necessary for life and health.

[Added Later.  My idea is that the income grants would be supplementary to what people already are earning or drawing from savings.  The specific amounts are just to illustrate the concept and could be more; I don’t think they could be much less.]

The problem is – the USA may not have the capacity to do something so seemingly simple.  I read somewhere that it may take months before the government can mail physical checks in its one-time-only economic stimulus plan.

Laissez-faire conservatives used to say that the only thing government could do competently is mail out checks.  Evidently it can’t even do that nowadays.

The best practical thing that could be done immediately is for the federal government to fully fund state unemployment insurance programs and Medicaid programs up to a reasonably generous cap.

For the long run, the country needs is a full employment program more than it needs a UBI.

See to it that every needful thing is done to prepare for pandemic and weather-related catastrophe.  See to it that every practical thing is done to mitigate greenhouse gas emissions.  See to it that every needful thing is done to safeguard the lives and health of children, the elderly and the sick.

Pay all the people who do the needful work a decent wage.

If all these things were done, UBI would become an unimportant side issue.  Whether these things are possible within our current economic and political structure is a question I don’t have a good answer for.

LINK

The False Promise of Universal Basic Income by Alyssa Battistoni for Dissent Magazine.  [Hat tip to Steve B.]

The guaranteed incomes of the top 0.1 percent

January 14, 2017

notwork11

Hat tip to occasional links and commentary.

Radicals propose a universal guaranteed income for all, regardless of whether you are gainfully employed or not.   But as Matt Breunig pointed out, it already exists in the top 1 percent and 0.1 percent income bracket.   They receive income from their financial assets regardless of whether they work or not.

There is a strong argument for a guaranteed.  It is that the reason that the national wealth today is greater than in the past is largely due to the inventiveness and effort of our ancestors, not to anyone living today, and that therefore all of us are equally entitled to the fruits of their effort.

This was the philosophy of the social credit reform movement, which provided the background for Robert A. Heinlein’s great utopian science fiction novel, Beyond This Horizon.

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