You get a subsidized apartment that’s fixed too 30% of your income so long as you make under 150% the federal poverty level. In 21 that was $12,880 for an individual meaning they would pay $322/mo for rent. I’m virtually every area of the country an apartment at that rent is impossible to find. Should this person really make themself homeless to earn more money doing abullshit job?
This is a welfare cliff and they’re everywhere. Healthcare, insurance, transportation, housing, food, clothing, charity, etc.
Housing and meals have natural economies of scale. Even tasks like fetching medicine while you’re sick or waiting for package become easier.
It’s a travesty how many people these days think the standard course of action is to try to live as an island.
Well, parents aren't legally obligated to provide support past age 18, which means many don't. And youths that are wards of the state because of abuse or their parents becoming incarcerated, dying, etc, are not supported beyond age 18. So this is at least a frequent corner case we'll have to deal with, even if social norms change so that more parents support kids past 18.
If you require public assistance for housing and food, I think you don't have enough income.
But public benefits can phase out, leaving you in an awkward place where you have more income but less household resources and become unable to feed your family by virtue of making more.
Public assistance? Like UBI?
By using your definition, it is BETTER if we stop giving people money. I'm pretty sure that is not the intended direction
I think it's important that to whatever extent we decide that some people need assistance, that we do it in a way that doesn't have a cliff and preferably doesn't have any phase-out at all, for the reasons I described.
Yes, the assistance is still economically distortive, but less so than otherwise. Everyone still has an incentive to increase their income and economic output.
This idea came to me from none other than Milton Friedman, in the form of the negative income tax.
For instance, the income distribution of people within Beverly Hills is probably pretty OK - no need to redistribute anything there!
But if you zoom out, you can look at the entire world and realize that the poorest of the USA are richer than many people around the world and should pay their welfare
"realize that the poorest of the USA are richer than many people around the world and should pay their welfare"
Why should us taxes subsidize world welfare (not that it already doesn't)?
And, further, beyond the balance of transfers in absolute dollars-- $1000/mo in California impacts resident life less than $1000/mo in Wyoming.
I don't think this is a strong reason to not do UBI, but it's a confound.
At what point do they have "enough" income? At what point can we stop chasing more money? The USA already has a really high average income. Why do we need more?