Re:Can Universal Basic Income Transform Society?
by hellojesus on Wednesday July 17, 2024 @01:08PM
(#40988000)
> A UBI eliminates the need for minimum wage.
We shouldn't have any minimum wage regardless of UBI.
But with regards to UBI, you didn't remove minimum wage. All you did was push minimum wage to all members of society regardless of their employment status. You state as much: a $1/hour job is fine if you already make $x, where $x is minimum_wage404.
It actually creates a larger burden on the private sector than if you just let minimum wage exist, as now you have to pay everyone minimum wage just for breathing.
This would create stimulus effects which are counteracted by inflation in time.
I hypothesize the opposite. A UBI eliminates the need for minimum wage.
And small differences in income are very meaningful for the poor. For instance if somebody is making $1k/month from UBI, a $1/hour job increases income to $1160. That's very meaningful and some would take it if nothing else is available.