Re:A Basic Income Should Be the Next Big Thing
by adrianN on Tuesday May 03, 2016 @08:10AM
(#11619812)
UBI should increase periodically; tied to economic growth.
Re:A Basic Income Should Be the Next Big Thing
by varjag on Tuesday May 03, 2016 @08:20AM
(#11619879)
Does that imply it should be decreased with economic recessions too?
Myself I don't really see any long term social solution other than UBI as well. But there are plenty of rough corners like that..
Re:A Basic Income Should Be the Next Big Thing
by SapphireSun on Tuesday May 03, 2016 @11:15AM
(#11621374)
Generally no (because it's a stimulus that can get the economy back on track by creating demand), but maybe yes in some very rare cases of deflation. However, most of the time governments can prevent deflation by printing money. We try to hit an inflation target of about 2% so it's very very unlikely we'd ever decrease it.
Japan did (does?) have a problem they couldn't print themselves out of called a liquidity trap. https://en.wikipedia.org/wiki/Liquidity_trap It happened to us in 2008 and continues to be a problem.
Disclaimer: Not a real economist.
Re:A Basic Income Should Be the Next Big Thing
by clarkmoody on Tuesday May 03, 2016 @07:15PM
(#11624984)
Widespread deflation would mean everyone on basic income just got wealthier in real terms.
Well, that's one of the major problems with this scheme: a whole lotta people will as well. In much the same way that we currently hear "I can't raise my family on minimum wage!" we will hear "I can't raise my family on my UBI!" Anyone who can't see how UBI increases will become a promise of every presidential hopeful hasn't been paying attention.
When the people realize they can vote themselves money... something something, I can't remember the rest.
---
I also get a kick out of how people think welfare programs will be eliminated by UBI, and that's why it won't be so expensive to implement. So what happens when someone on UBI has their car break down or, as will often be the case, just flat-out doesn't budget properly and now they can't buy groceries? We're just going to let them starve? Of course not. There will be a safety net below the UBI.