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Government Politics

Is Support Now Growing for a Universal Basic Income? (bloombergquint.com) 238

Economist Tyler Cowen and former world chess champion Garry Kasparov (now the chairman of the nonprofit Renew Democracy Initiative) co-authored an opinion piece this week in Bloomberg arguing that "a pandemic is providing a tragic preview of some of the conditions UBI was conceived to address."

Though they worry about the cost of such a program, "And, though there are some important qualifications, Covid-19 is making UBI look better..." Job creation during the pandemic is as slow as many UBI advocates feared. Even in health care, where one might expect employment to be rising dramatically in the midst of a pandemic, it is sluggish... In response to an unemployment level unseen since the Great Depression, the federal government has instituted cash transfers, which in some cases result in unemployment payments that are higher than wages. This is a radical experiment. It is being called stimulus, inaccurately, when it is a humanitarian program designed to tide people over during economic duress — and it draws explicitly upon UBI-like ideas.

In contrast, many European countries have been guaranteeing wages in the hopes of "freezing" the economy and then "defrosting" it when it is safe to return to work. Yet some recent U.S. estimates suggest there will be 3 new hires for every 10 layoffs caused by the pandemic, and furthermore 42% of the new layoffs will be permanent. (In post-pandemic America, there will be less need for waiters.) That suggests the American UBI-like strategy is likely to outperform the European approach, because the world is changing rapidly and labor will need to be reallocated accordingly...

Representative Alexandria Ocasio-Cortez as well as Senator Mitt Romney have argued that UBI is an appropriate response to a pandemic, though Ocasio-Cortez favors making it permanent.... Covid-19 is illustrating that some aspects of a UBI may be more necessary and more workable than previously thought.

The New York Times also reported today that "three dozen influential figures at labor unions, think tanks and other progressive institutions have convened a weekly virtual meeting — known as the Friday Morning Group... one of several brainstorming-and-planning initiatives underway in Washington" to consider responses to new economic challenges, "including mainstream proposals like major new spending on public health and child care and less widely supported options like creating a universal basic income or offering a federal jobs guarantee."

Mary Kay Henry, president of the Service Employees International Union, which represents more than a million health care workers, said she had briefed Democratic lawmakers in both the House and Senate about her organization's view that it was time to "change the rules of the economy for the long term," including a powerful expansion of the rights and employment benefits of lower-income workers.
And former Democratic presidential candidate Kamala Harris "has endorsed a plan called the Monthly Economic Crisis Support Act," writes an editor at the conservative and libertarian think tank the Heartland Institute, "which would send $2,000 per month to Americans who make less than $120,000 per year. Married couples would receive $4,000 per month, as well as $2,000 for each child... the checks would be sent for up to three months after the coronavirus crisis ends."

But that editor calls it "a preposterous plan," adding "is it such a logical leap to assume that some on the left are using the coronavirus crisis as an opportunity to introduce another 'temporary' welfare program...?"
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Is Support Now Growing for a Universal Basic Income?

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  • 91% of US adults make less than $120K. that's 0.9 of 210 million which is 189 million people. You're going to give them 378 billion a month? No, you're not. Then for each kid the have too? Great, 500 billion plus a month, six trillion a year.

    Fuck off, not happening. Get a job you fucking hippie.

    • by jonsmirl ( 114798 ) on Sunday May 17, 2020 @02:45PM (#60070968) Homepage

      I can't even imagine how much inflation $6T/yr in UBI payments would cause. You can't tax an additional $6T/yr from the economy, so fire up the printing presses. Do some more math...

      $4000/couple/month
      $2000/kid/month

      Geez, UBI for a family of five is $120,000/yr.
      So does a family of six lose their UBI? They'd get $144,000/yr (tax free).

      The only way a insane plane like this could work is by running the printing presses 24/7. And that will cause inflation, and when inflation reaches equilibrium again everyone will be right back where they started.

      • Mass automation, if/when it actually happens, would bring about functional deflation. By functional, I mean the actual cost of bringing products/services to market would drop over the long term. Doesn't mean market prices would come down, though people's inability to buy anything would eventually erode prices and lead to deflation. At that point you're dealing with market fixers who may try to prop up prices to prevent that from happening.

        Therefore you would not need to tax $6 trillion per year from the

        • You really shouldn't worry about robots putting everyone out of work. Over the last fifty years our government has destroyed many more jobs than robots will due to policies that incentivized offshore manufacturing. History will likely show that was a huge mistake.

        • Deflation is bad if you want anything to get sold. When sitting on money increases its purchasing power, guess what everyone does.

      • by Ichijo ( 607641 )

        I can't even imagine how much inflation $6T/yr in UBI payments would cause.

        Maybe none. UBI will allow employers to pay employees less. In a competitive economy, those savings are passed on to the customers.

    • Blunt but to the point, magic is not real, and there is no endless money tree or golden goose creating wealth out of thin air. It only seems like it works because you aren't really doing it everywhere, "pilot programs" are not nearly enough to show the true long-term impact

    • Re: (Score:2, Insightful)

      Again, don't like you, we don't get along, and I don't agree with many boomer-like things you have to say -- but again in this case we agree. All the arguments in favor of so-called 'UBI' assume that all the major stakeholders, all those corporations and individuals who hold the major portion of the wealth in the United States, are going to willingly hand it all over to be 'redistributed' to every single citizen, and that furthermore all 'social' programs like welfare and SNAP and so on are just going to ce
      • by gweihir ( 88907 )

        While AI is not happening, dumb automation will take a lot of jobs. And there will not be replacements.

    • by ranton ( 36917 ) on Sunday May 17, 2020 @03:01PM (#60071032)

      I'm not sure why these proposals were even brought up in an article about universal basic income. These plans are only for during this Covid crisis, not for ongoing basic income. The Monthly Economic Crisis Support Act seems insane to me and I'm fairly liberal; it gives up to $5500 per month to a family with three kids. Even for a few months that seems excessive. Not everyone is out of work; just use that money to bolster unemployment / underemployment instead.

      No basic income plans I have ever seen propose a basic income of $66k per year. Basic income payments are generally proposed to be closer to $500-$1000 per month, and the threshold for people who would come out ahead (after the increased taxes to pay for it) is far less than $120k. Probably closer to $75k.

      These Covid-19 plans may show that politicians are starting to consider direct payments as a better solution to problems than regulations or corporate subsidies, but they do not resemble what basic income plans would become.

      • I'm not sure why these proposals were even brought up in an article about universal basic income. These plans are only for during this Covid crisis, not for ongoing basic income.

        Miss AOC, for one, would disagree on that point. You can find her recent statement on this as easily as I can.

        • by ranton ( 36917 )

          Miss AOC, for one, would disagree on that point. You can find her recent statement on this as easily as I can.

          I actually cannot find any statements where AOC claims the $5500 per year payments would continue after the Covid-19 crisis. She certainly is a proponent of a basic income, and I do agree she goes overboard with most of her proposals, but I doubt she has ever claimed she wants basic income to be that high.

      • The desperation comes from the Left realizing that if their ridiculous proposals can't even gain traction during a global pandemic that's put half the world into dire straits then nothing will ever make their ideas palatable.

    • Re: (Score:2, Informative)

      by apoc.famine ( 621563 )

      As others have pointed out, your reaction is pretty stupid and short-sighted. You don't seem to understand how UBI works at all, so here's a quick explanation:

      In most UBI schemes, once you hit some fraction of the poverty level you start paying back $1 for every $2-$3 you get in UBI. In the US, the poverty line is about $12k/year, which is $1k/month. Lets take that as the limit before UBI starts getting taxed at a $2 or $3 ratio.

      Someone making $2k/month ($1k over poverty) would end up paying something like

      • Unemployment already covers the situation where you're suddenly jobless. To the tune of about $2k a month where I am.

        What's UBI for?
        • by vix86 ( 592763 )

          I'm just going to parrot some stuff I have heard in this UBI talk.

          Why have UBI when there is Unemployment and Welfare? Administrative costs. According to the proponents for UBI, these admin costs to determine if someone is eligible for unemployment and welfare, are what cause the cost of these programs to balloon. If you simply match or do better than these programs in your UBI payouts, then you can eliminate a ton of the overhead in the budget.

          Now is this going to provide the trillions we need for UBI? Dou

          • Ok I understand you're channeling for others so not attacking you here.

            So, they think replacing a temporary assist like unemployment payments with a full time permanent payment with UBI will pay for UBI by reducing administrative costs of temporary unemployment?

            Really? That's some mighty interesting math some people got going on.
      • So what you'e saying is, that Universal Basic Income is neither universal nor basic. Got it. Seems like a fancy name for welfare, to me.
    • Most people are already useless. Automation led to the design of the service economy, where instead of making coffee you make coffee for people at Starbucks. None of it matters, all of it exists to prevent mass unemployment and collapsing demand. Coronavirus has also revealed how little it matters if loads of people stop working. 70% of the economy is people sitting at desks looking busy.

    • The actual cost (which would still be impressive) is the differential between your estimate and the current cost of the welfare/foodstamp/etc programs that UBI would replace. There's also the less tangible benefits, such as the improved social and geographic mobility such a program would provide. The extra $XXX billion flowing through the economy would also doubtless provide lot of benefits.$2k a month seems high, but that doesn't invalidate the idea.

    • by gweihir ( 88907 )

      Good luck with that. These people have been trying to get jobs. It is either get money to them some other way or your country will go up in flames. Have fun when that happens.

    • Everyone pays, at least 10% of income and $5000/year minimum.

      If you donâ(TM)t have the cash, you can pay it via community service by being assigned to do labour for someone who DID pay.

  • by Dan East ( 318230 ) on Sunday May 17, 2020 @02:29PM (#60070924) Journal

    I've seen government at ALL levels, from town to federal, doing things they've wanted to do for a long time while using COVID-19 as an excuse. As an example, a mixed-use nature trail, used for walking and biking, had a sign posted saying that as a COVID-19 precaution bike riding was not allowed and the trail could only be used for walking.

    There's no question that democrats (and republicans, but in very different ways) would be pushing their agenda along, riding the extreme disruption and changes precipitated by COVID-19. The "support now growing" for UBI is just more of this.

    • by PPH ( 736903 )

      as a COVID-19 precaution bike riding was not allowed

      There appears to be some scientific justification [urbanphysics.net] behind that. Where Covid-19 might appear to be an excuse is in places like Seattle. Where roads are being closed down to make more space for cycling. So now the poor residents won't be able to walk out their front doors without risking running into a cyclists snot plume.

      As far as a UBI goes, the current state of the economy may in fact argue for additional financial support during the pandemic. But any conclusions reached will have to be thrown out once the

  • People love free shit.

  • No (Score:2, Insightful)

    by bradley13 ( 1118935 )

    Still a stupid idea. Like all socialist ideas, it sounds great, but runs aground on the shoals of reality.

    If proponents would truly agree to eliminate all other social programs - to let people starve after blowing their UBI on booze and bling - then I would take them seriously. They won't, so I don't.

    • Put new laws in place that limit things you can buy only if you make X amount of money per year (including UBI).

      Your only income is UBI? You're not allowed to buy superfluous things like alcohol or jewelry.

      • by PPH ( 736903 )

        We have this today. It's called EBT. But it has problems*, like people trying to buy pot with their food stamp money. So the UBI proponents want cash handed out so there are no questions asked. Spend it on drugs and we will still have soup kitchens and homeless camps.

        *One restriction with EBT is the banning of certain products used as barter [nytimes.com] for drugs.

        • You're thinking of WIC. EBT lets you buy garbage like tv dinners, potato chips, popsicles, etc etc. WIC is limited to certain products.

      • Put new laws in place that limit things you can buy only if you make X amount of money per year (including UBI).

        Your only income is UBI? You're not allowed to buy superfluous things like alcohol or jewelry.

        Oh yeah that sounds super enforceable, not to mention constitutionally sound. You can't buy these things because you take government money. Really you're just talking about a half way house but somehow the restrictions happen when nobody is watching.

      • Put new laws in place that limit things you can buy only if you make X amount of money per year (including UBI).

        Your only income is UBI? You're not allowed to buy superfluous things like alcohol or jewelry.

        Who's going to monitor that? I thought that one of the great things about UBI would be the tremendous reduction in paperwork and bureaucracy. Now you're going to monitor everyone's purchases based upon their income level?

    • I don't know if you realize this, but you're just repeating tired cliches that you've heard. Your ideas are not based on reality. It sounds good to you, I'm guessing, but it's not how the world works.

      Are you willing to question your innate biases and the propaganda that you've internalized?

    • Re:No (Score:5, Insightful)

      by TheRealMindChild ( 743925 ) on Sunday May 17, 2020 @03:41PM (#60071160) Homepage Journal
      Cool. It's just easier to give the hundreds of billions/trillions of dollars to corporations through endless tax breaks so that the rich can buy back their stock and ask for a bailout when shit hits the fan. More efficient than letting the poor spend it and it trickle upward. For fucks sake
    • If proponents would truly agree to eliminate all other social programs - to let people starve after blowing their UBI on booze and bling - then I would take them seriously. They won't, so I don't.

      It doesn't matter if the people actually pushing it are willing to give up those other programs. The people who champion those other programs aren't.

    • by gweihir ( 88907 )

      You have a better idea? Because nobody does...

      UBI is not a good idea, I completely agree. It is an emergency measure that is without alternative because all other alternatives are significantly worse.

  • by presidenteloco ( 659168 ) on Sunday May 17, 2020 @02:38PM (#60070954)
    Because automation and AI are going to hollow out the human labour economy. Exact numbers is a mug's game, but easily 25% fewer jobs in the near future, going toward 50%. And other human jobs (those many people are most proud of like doctor, lawyer) will hve the human component of the work reduced in value since the AI will do a lot of the heavy lifting.

    I was running on this platform as far back as 1996 cause the writing (of improvement in computer automation competing against more or less static human ability levels) was on the wall back then. But apparently, it was written in really fine print. Now finally something has come along and magnified it.

    To those who worry that it is taking money from the rightful earners of the money (the capitalists and entrepreneurs who get stuff done), ok, but in the past, those players always brought a large number of employees along with them. That will not be happening in the future, on a gradual curve anyway. So it probably makes sense that there by a larger tax on profit from sales of very low-human-input goods and services.

    Will the top 1%, who will kind of become the top 0.1% as the middle falls out, income-wise, really be able to operate with low tax and sell only to each other amid a sea of no-income or black market operating subsistence population, protected by private, and highly automated, security companies? Because that's the only alternative scenario I can see to universal basic income, going forward.
  • While I like the idea of a UBI as a system for providing welfare, I think it's awful for dealing with a pandemic, especially for anyone who would want to close the economy for a prolonged period of time.

    Frankly it doesn't matter how much money you give everyone if there's nothing to buy. Money isn't valuable for its own sake, it's only a commodity like everything else and only maintains its value as long as the wealth produced by the economy increases proportionally. Taken to an extreme example, if our a
  • If anything COVID19 makes UBI less likely. UBI is a luxury, a result of improved productivity that drives some people out of work.

    The excess capital is gone. Productivity is down. For a long time productivity increased with time, but now I figure we are put back about 20-25 years,

    • Re:Less likely. (Score:5, Insightful)

      by apoc.famine ( 621563 ) <apoc.famine@gm[ ].com ['ail' in gap]> on Sunday May 17, 2020 @06:53PM (#60071758) Journal

      If anything COVID19 makes UBI less likely. UBI is a luxury, a result of improved productivity that drives some people out of work.

      No, it's nothing of the kind.

      UBI is a very efficient unemployment fix, and a very good economic engine. It's brain-dead easy to implement and fund, and it requires minimal government oversight, unlike all of the other social services. It can replace unemployment, disability, social security, food stamps and programs like WIC. Instead of hordes of government employees making all sorts of byzantine rules and spending their time being the gatekeepers of benefits, a cron job deposts money into everyone's bank account each month.

      On the back end, we withhold somewhere between 0% and 2000% of the UBI from people's paychecks, depending on how much they make. Most plans call for withholding $1 for every $2 or $3 you make over the poverty line. For most people, most of the time, UBI into their bank account is balanced with UBI withholding from their paycheck. When that paycheck goes away, UBI remains, and they don't need to do anything to tap into that resource.

      Compared to shit like social security, this is amazingly easy. There aren't benefit formulas, you don't get less if you start tapping it before a certain age, there aren't choices about how much to take out when. You don't need to fight with the unemployment office to get your rent paid. If you aren't making money, you aren't taxed to fund the UBI benefit. When you are making money, you are.

      Our welfare system has welfare cliffs, where if you make too much money you drastically lose benefits. Then if you stop making money, it might be months before you can get through the red tape to get them back. That encourages people to stay on welfare and avoid making too much money. UBI lets you make all you want to make, and if you make $10k one month and $0 for the next 3 months, it's all good. The month you make $10k you probably got taxed $4k for UBI but still came out $6k ahead, and the other 3 months you got your normal UBI.

      It's not a luxury. It's actually a fairly sensible way to run a social safety net. And since we can largely net-zero fund it with payroll taxes, we can start it small and then increase it as needed and as we get more funding simply by adjusting the tax withholdings.

      • Where the hell do you get this broken idea of what UBI is?

        UBI BY DEFINITION does not withhold payments if you earn more, that breaks the whole god damn point!
        Then it just becomes another form of poor benefit/wealth tax. It needs to be administered, policed, etc, etc.

        UBI is a single direct amount paid to all adults in an economy, in return for the removal of other 'normal' government support benefits, and minimum wage.

        It significantly increases the efficiency of said economy for a long list of reasons.

        But no

  • I don't think support has been that much of a problem for the universal basic income concept. True, some people have philosophical objections, but it's the practical issues that have been holding the idea back.

    Right now there's lots of support for a temporary UBI as an emergency measure, and it turns out that there are still no solutions to the problems people have been pointing out for years. How do you get money to everyone? Who is exactly is 'everyone'? How do you prevent fraud? How do you deal with

  • Here's the thing. Money isn't the fundamental currency. Productivity is. Money is just a ruler we use to measure productivity. But like any ruler, the spacing between the markings is arbitrary, so the value of money is not fixed. For a UBI of $x/mo to make sense, there has to be sufficient productivity to back up that valuation of $x.

    A UBI might work when the country has plenty of productivity. I'm kinda skeptical, but I can understand the arguments of those saying we're approaching a state of auto
    • You're missing a piece.

      UBI can help productivity remain during a pandemic, rather than shutting it off completely. If you're out of a job and trying to make rent, you're not going to be all that productive. There are plenty of stories of people fighting for a month and a half or two months to get unemployment, because our sprawling bureaucracies don't have the flexibility or the staffing to handle the volume of requests. During that time, people are effectively economic dead weight.

      Everyone not getting mone

  • A $1k UBI would cost the US more than all the income tax collected in a year. Let that sink in. What are our options to pay for it?
    (a) have the fed print the money. or, "hello devaluation of currency! want your Pizza to cost $300? this is how you get there!"
    (2) increase income tax. yeah ... we're gonna need to double that. or maybe triple if they push for this $2k thing...
    (iii) VAT tax it! uh huh. national sales tax increasing the price of everything. its like option #2, just with less paperwork.

    T

  • by martinX ( 672498 )

    No. If you make the UBI the base for zero effort, you make that amount of money essentially worthless. It's like handing out a free phone, car or house. That item is then the new zero level for the people who received it, and it will be treated as such. Been there. Seen that.

    Seriously, has no-one read HHGTTG and it's treatise on the economics of leaves [goodreads.com]?

  • which went something like this:

    "There is no Pravda in the Izvestia, and no Izvestia in the Pravda".

    Translated: there is no truth in the news, and no news in the truth.

    Another favorite among the USSR citizens was:

    "We pretend to work and they pretend to pay us".

    That will be the end result of the UBI. However, the entire program, as history has revealed, is that those who give you the money then want to tell you where and how you can spend it, where and how you work to "earn it" and where you can and

    • If Garry Kasparov wants to "renew democracy" then let him begin in his own country, Russia, by renewing his opposition against Putin, IF he can do it.

      He tried, but ultimately he was born an outsider and didn't understand how to change things in Moscow.

  • If we go down this road we could combine UBI with a national sales tax and eliminate the income tax.

    One downside of a national sales tax is it overly affects the poor. UBI fixes that.

Keep up the good work! But please don't ask me to help.

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