Re:Rich people do have trouble understanding what it's like ...
by medvezhenok on Saturday May 22, 2021 @03:04PM
(#27249351)
I mentioned higher up in the thread, but this is exactly why we need UBI. UBI gives the poor some leverage to avoid being exploited due to circumstance(s). Yes, we will get some inflation - but I don't see that as bad. A lot of the reason we have very low inflation right now is because the balance is skewed too far in favor of capital over labor (and that is due to being able to offshore - which should be penalized appropriately, imho).
Re:Rich people do have trouble understanding what it's like ...
by ctchocula on Saturday May 22, 2021 @06:02PM
(#27250674)
I used to think UBI was the solution, but it has a severe risk of creating a permanent underclass. Then I learned about a Federal Job Guarantee where if the private sector chooses not to provide jobs then the Federal govt will step in and become the job provider of last resort with salaries going for a living wage. This is a stronger guarantee than merely a minimum wage, because companies will just cut jobs in a small town; the Job guarantee will ensure that labour won't just be laid off permanently. It also has some nice properties economists like such as being an automatic stabilizer during recessions when companies are loathe to invest in the economy, while during the good times, fewer people will be on the Federal job program.
Re:Rich people do have trouble understanding what it's like ...
by medvezhenok on Monday May 24, 2021 @03:06PM
(#27268444)
UBI has the advantage of people being able to re-skill to take advantage of market opportunities (people going back to school for engineering, say), as well as accounting for situations like stay-at-home parents, so I think it has certain advantages over a Federal Jobs guarantee.
That said, I don't see why we can't have both (A base level of UBI + a federal jobs guarantee)
But there is a serious problem behind it.
For example, with food, if you have enough money you can afford to buy large quantities and take advantage of discounts.
For rent, it you have money, deposits won't be a problem, and landlord may be more willing to give you interesting offers. Poor people are at risk of not being able to pay the rent, and landlords have to account for it. You may even buy and not pay the rent.
For utilities, if you have money, you can buy more efficient heaters and appliances, better isolation, maybe even solar panels and stuff like that which may be profitable after a few years.