At one of our dinners, Milton recalled travelling to an Asian country in the 1960s and visiting a worksite where a new canal was being built. He was shocked to see that, instead of modern tractors and earth movers, the workers had shovels. He asked why there were so few machines. The government bureaucrat explained: “You don’t understand. This is a jobs program.” To which Milton replied: “Oh, I thought you were trying to build a canal. If it’s jobs you want, then you should give these workers spoons, not shovels.”
MMT doesn't model fiscal policy as unconstrained in real terms, only nominal terms. And given the legal authority, of course a sovereign issuer is always able to spend. In this case spending is merely typing digits into a computer. This fact doesn't imply deficits/debt "aren't relevant", but rather deficits/debt work very differently for the currency issuer as opposed to the currency user.
It would also have to be very librial about borders and illegal immigrants to simulate the US.
I would suggest the minimum size of this nation should be around 15+ million people.
No, they need fulfillment in their life. Do you think flipping burgers at McDonald's provides that?
UBI allows people to not have to work long hours at shitty jobs. That is something that should be praised, not derided as "theft".
Disagree, basic income is equitable distribution of a collective legacy of increasingly advanced tools and a necessary recognition of limited natural resources and duty to share a small portion to every human being on the basis of birth into our society, aka social contract.
"Overall basic income is theft from workers and will be seen as such by those workers."
When enough of those producing wealth decide that UBI = theft, they aren't going to just continue producing without pushing back. Personally, if UBI is implemented, I will "go Galt" and move to a self-sufficient homesteading-style life, leaving any cash-requiring activities (like paying taxes) to my $UBI/mo check. That I am a productive person does not mean my productivity will necessarily be taxable; I grew up in a live-off-the-land family, and would be happy to return to that lifestyle if you're going to just take a big chunk of my income just to give to others.
There are enough jobs (yes, there are). Wealth is not durable (you eat a hamburger, $1 of economic wealth turns to *). Encouraging idleness by funding it is an unsustainable economic strategy, because so many people find paid idleness a desirable lifestyle.
You're close, and it's an easy mistake to make since it seems intuitive. However, the reality is that people find THE IDEA of paid idleness desirable. Small N, but everyone I know who has found themselves in that position has only remained idle for a very short time. Productivity quickly returns, although not in the form of trading time for money.
Like most human traits, there is a wide degree of variance. As such there is no doubt in my mind UBI would allow a greater number of idlers because it would be more easily available. Just as it would allow more people to trade a job they don't like for a constructive activity they do.
(I'm not saying that about all poor, but the fraction thereof who are is significant.)
(i) there are others in the same currency area who don't receive the income
(ii) the amount is insufficient to live on
(iii) there are insufficient jobs overall in the economy for all that want them
(iv) it isn't permanent
then all you actually have is a tax credit system with a different withdrawal mechanism. https://medium.com/modern-money-matters/is-basic-income-basi...
The pathologies of income schemes that cause all of them to be degraded and cancelled build up over time as people adjust to the new scheme and work out who is failing to reciprocate.
Overall basic income is theft from workers and will be seen as such by those workers. https://medium.com/modern-money-matters/is-basic-income-basi... They then agitate to have the income removed from those seen as cheating the system.
What we need are guaranteed jobs at a guaranteed living wage, paid for by the state working for the public good. Then private businesses finally have to compete for labour and that maintains the wage share.
People need something to do where they can be of service to others. Not paying off and left to rot.