Re:Universal basic income to be tested in Wales
by dragonwriter on Sunday May 16, 2021 @01:36AM
(#27171451)
> I am not exactly sure how paying everyone money helps people who need it more than a system that just gives money to people who need it
UBI funded with additional high-end tax progressivity avoids the pervese incentives with traditional means-tested welfare where benefits are cut rapidly with additional income (sometimes at a more than 1:1), disincentivizing outside income and tending to trap people in dependency. You can view it as equivalent to means tested welfare where the means test is shifted upward not to the survival level but to the level where the social utility of incentivizing additional income-seeking has gone negative.
UBI funded with additional high-end tax progressivity avoids the pervese incentives with traditional means-tested welfare where benefits are cut rapidly with additional income (sometimes at a more than 1:1), disincentivizing outside income and tending to trap people in dependency. You can view it as equivalent to means tested welfare where the means test is shifted upward not to the survival level but to the level where the social utility of incentivizing additional income-seeking has gone negative.