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A comment on Germany begins 3-year universal-basic-income trial. Parent comment

Re:Germany begins 3-year universal-basic-income trial by dragonwriter on Wednesday August 19, 2020 @05:07PM (#24216500)
> The big question for me is how would the introduction of UBI ultimately affect that ratio, given that you would be less disincentivized to stay with the underproducing group?

The “given” is backwards. Compared to existing means-tested welfare systems, UBI funded by additional high-end taxes provides less disincentive to move out of the underproducing group.

If the minimum support level provided by UBI is used (in whole or in part) to offset and reduce minimum wage, it also reduces the barriers to people moving immediately to a less-inderprodicing level, and eventually up and out of the underproducing group.

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Re:Germany begins 3-year universal-basic-income trial by tie_ on Thursday August 20, 2020 @03:09AM (#24220685)
> If the minimum support level provided by UBI is used (in whole or in part) to offset and reduce minimum wage, it also reduces the barriers to people moving immediately to a less-inderprodicing level, and eventually up and out of the underproducing group.

You can get rid of minimal wage with or without UBI. In fact Germany just recently introduced minimum wage - there was none before. The lack of it was clearly not regarded as boon to the society. The barrier effect is minimal, if any.

[ Parent | on HN ]