Re:Study: A universal basic income would grow the economy
by logicchains on Saturday September 02, 2017 @02:26AM
(#15154629)
>This argument breaks down in a couple of different ways but lets just look at one:
>Assuming there is no wealth redistribution then you had Joe and Jane have $19.128.28 and $69,330.20 respectively. Lets say they both die on the same day and leave all their wealth to Joe Junior ($19,128.28) and Jenny ($69,330.20).
I'd argue this is a categorically different case as it's taking wealth from a dead person. From economic perspective I agree there's less of an argument that this reduces growth.
>And of course the same is true without having to wait for the next generation. Just because person A made good use of their resources for 10 years is no indication that they will always continue to do so and so are going to generate the best return on those resources - and the opposite is also true. That said while past performance is no indicator of future success it is a whole lot better then nothing.
If past performance is some indicator of future success, then would it be fair to say that if a redistribution policy ignores this, and takes into account no other factors correlated with potential future returns in determining whom to redistribute to, then on average it will still result in transfer from better investors to worse investors? An opposed to e.g. redistribution in the form of scholarships to poor but well-performing students, which could increase overall growth.
>Assuming there is no wealth redistribution then you had Joe and Jane have $19.128.28 and $69,330.20 respectively. Lets say they both die on the same day and leave all their wealth to Joe Junior ($19,128.28) and Jenny ($69,330.20).
I'd argue this is a categorically different case as it's taking wealth from a dead person. From economic perspective I agree there's less of an argument that this reduces growth.
>And of course the same is true without having to wait for the next generation. Just because person A made good use of their resources for 10 years is no indication that they will always continue to do so and so are going to generate the best return on those resources - and the opposite is also true. That said while past performance is no indicator of future success it is a whole lot better then nothing.
If past performance is some indicator of future success, then would it be fair to say that if a redistribution policy ignores this, and takes into account no other factors correlated with potential future returns in determining whom to redistribute to, then on average it will still result in transfer from better investors to worse investors? An opposed to e.g. redistribution in the form of scholarships to poor but well-performing students, which could increase overall growth.