If you want to get out of poverty, a good way to do that is by getting more education and practicing skills that are valuable to employers. A Basic Job often conflicts with that.
If you want to get out of poverty, a good way to do that is by taking part-time and piecemeal work to build up your experience. A Basic Job often conflicts with that.
A government study of workfare programmes in the UK, Canada, and US[1] concluded that: "There is little evidence that workfare increases the likelihood of finding work. It can even reduce employment chances by limiting the time available for job search and by failing to provide the skills and experience valued by employers."
Oftentimes the poor are those who most need to spend time taking care of children or the elderly -- types of work which are tremendously valuable to society despite not being part of the wage labour system. A basic job conflicts with that.
Furthermore, Basic Job programmes have vast bureaucratic overhead and are far more expensive to implement than Basic Incomes. What you consistently miss in your argument against Basic Income is that it is something which everybody receives. Most people contribute to it, but all people receive a benefit from it. The "cost" is not the total cost of the programme, but the difference between what you pay and what you receive.
1: http://webarchive.nationalarchives.gov.uk/20130128102031/htt...
Basic Job programmes have vast bureaucratic overhead and are far more expensive to implement than Basic Incomes.
Back of the envelope calculation, please.
Incidentally, your study merely shows there is very little evidence of anything due to workfare being poorly implemented and rapidly abandoned. For example, NYC had only 2800 people on workfare in 2003. Additionally, it claims that about half of people on workfare don't actually work and merely loaf about the work site (but presumably continue receiving benefits).
Obviously a BJ won't work if you turn it into a de-facto BI or welfare system.
With this comment, it becomes difficult to see how you're arguing in good faith. If your Basic Job tells you to work at a particular time of day -- and classes and/or a part-time job are in the middle of this work schedule -- then they conflict. Sure, you can go to school and/or take the part-time job instead, but then you starve.
How is it that you're incapable of understanding that this creates a conflict?
> Back of the envelope calculation, please.
Okay, using your straw-man scenario, there are 50M people requiring $20k worth of income. That costs $1T upfront (same as if we provided the $20k Basic Income to all 300M people). Now with our Basic Job, we're basically asking people to do work that they don't want to do -- since as you point out, if they're not closely supervised then they won't do the work.
So let's assume we need a poorly-paid supervisor for every 12 basic-jobbers, a somewhat better-paid line manager for every 20 supervisors, a somewhat well-paid district manager for every 50 line managers, and an actually well-paid regional manager for every 100 district supervisors. Furthermore, lets assume that all these jobs come from the ranks of the currently-unemployed, so that they're not pure overhead but are providing support in and of themselves.
Job description $/year No. of people Total cost
Basic Jobber 20k 45,973,453 919.5B
Supervisor 30k 3,831,121 114.9B
Line Manager 40k 191,556 7.7B
District Manager 60k 3,831 0.2B
Regional Manager 100k 383 -
...This would be an overhead of about 4.2%, compared to the effectively zero overhead which a Basic Income requires (all you need for BI is one-time-only verification of citizenship, and careful monitoring of when people die so that the payments stop. You don't need to employ millions of people to do that). So this would cost roughly $420M more than an equivalent Basic Income program, while simultaneously preventing 50M people from doing something more useful with their lives.I must commend you on actually thinking things through carefully and checking if, numerically, a policy is remotely plausible. It's so rare to see on threads like this.
Your $6T number is false. Even in your strawman, the cost of the Basic Income would be $1T: $6T less $5T as a "cash-back rebate", due to the fact that every single person paying for the BI is also receiving the BI. This has been explained to you many times on this thread, but you keep ignoring it.
> if a basic jobber costs $7.25/hour and they produce $0.30 worth of value, the Basic Job pays for it's own overhead.
But a Basic Income would have $0/hr worth of overhead -- and it can be assumed that a person who is able to seek work and education will produce more than $0.30/hr of value anyway.
> I must commend you on actually thinking things through carefully and checking if, numerically, a policy is remotely plausible.
Thank you. I have an MBA from Oxford and run two businesses. I am very comfortable with numbers.
This doesn't sound plausible to me. People are devilishly clever when it comes to bilking large bureaucracies out of free money. It's going to take a bit of work to prevent that from happening. Organized Crime is going to get in on something like this.
You mentioned earlier that BI disincentivizes work. How so? It seems to me that it would not, because the basic income doesn't disappear the instant you start working even a little bit.
Regarding each of these caveats in turn:
1) There are plenty of projects that we individually may deem socially worthwhile that we don't pay for. Parents raising their children being probably the strongest example, but there are other places where value is simply hard to capture. Incentive to work on these is not decreased by BI.
2) Incentive to work depends on what people are willing to pay you for your labor. If BI ultimately means people are willing/able to pay for more things then the total incentive to work may rise. So far as I'm aware, this is not a settled question (it seems a probable second-order consequence but possibly drowned by inflation, &c...)
3) Anyone currently receiving disability or welfare payments is not merely being paid despite not working, they're effectively being paid not to work. Transitioning to unconditional support will clearly increase their incentive to work.
What all this does in aggregate is not at all clear to me.
The incentive to continue working even if you receive BI is that BI won't be enough to have a luxurious lifestyle, just enough to meet basic needs and educate oneself.
So if anything BI incentives people to work even if only for once in a while.
But there is nothing that indicates this at all. In fact the Canadian experiment mincome although not conclusive did not show people in general stopping to work.
I agree with you that the evidence shows there is not even substantially reduced incentive. In the case of Mincome in particular, it did show a decrease in hours worked, which is consistent with the claim that you were objecting to - that BI reduces the incentives for work (relative to the same system with no BI). Asserting that the global disincentive is small and that conditional assistance provides far more disincentive would have been entirely appropriate. Asserting that there is zero disincentive - without an explanation for why we saw one in Mincome - is not, and your earlier comment was arguing that by asserting remaining incentive was not zero which just doesn't make sense as an argument.
What I said was that it always will pay off to work and therefore incentives people to work.
Thats a very different argument than the one you are arguing against.
"...This one is pretty straightforward. BI disincentivizes work because it stays with you if you stop working. On the common assumption that people are working for the money, not for the joy of showing up, this reduces the penalty for not working, which will cause a rise in... not working..."
More specifically this sentence:
"...On the common assumption that people are working for the money..."
You said:
"With BI it always is beneficial to work."
As an aside, this is not quite true - if I value my time more than the wages offered, or if working has associated costs that exceed my wages, it might not be beneficial - but it is certainly the case that you don't wind up with less money because you worked because of BI.
However, more importantly, this doesn't disagree with thaumasiotes's comment and I don't see how it's relevant to the parent discussion.
"Even if you only work for a couple of months a year (for instance picking strawberries) you will make more money than not doing anything."
This is true, and a great advantage that BI has over conditional transfers or assistance. It's still not actually relevant to the parent's point. Absent BI, this is still the case, and the incentive will be higher.
"So if anything BI incentives people to work even if only for once in a while."
This seems entirely false, in terms of anything that was presented here. It is the case that people remain incentivized, but it is not the BI that 8provides* that incentive. The change due to introducing BI is that paid work is less incentivized, which is the same as saying "BI disincentivizes work."
It doesnt work and never have. Denmark tried this too it does nothing cause it doesnt solve the basic problem.
There is not enough jobs for all of us and will increasingly be so.
BI is the best solution we know of and we should try it.
A lot of the comments here also ignore a lot of the factors that Basic Pay would provide which aren't directly measurable- increases to areas such as science and the arts which, while not tied to anything concrete like GDP or a country's economy, are indisputedly important to society.
BI would not provide increases to science nor art. It would dilute them. I get enough emails as it is from whacko's who think they've upturned Quantum Mechanics, Relativity, or created some perpetual motion machine. If society valued these people's output they would be financially rewarded already. There's already incentives in present society, called capitalism and competition! There's a reason why only a tiny fraction of actors, musicians, and artists earn a living. That living is what society thinks of their art.
Further, plenty of people on social programs are quite content with sitting on their ass. And some deservedly so, due to true disabilities. An able-bodied adult has no moral right to income which they did not earn. That is theft from the truly deserving individuals who either were born with extreme hardships, or became disabled.
Note: A few years ago I was a graduate student (24k/yr living) in Boston who made time to play drums. You can express your art (or science) without a handout.
How can that be? What direction is this going? How soon until everybody is subsidized in some way? (There are 2000+ federal housing assistance programs right now).
Market value for construction workers is misleading when the market is skewed. Because we currently play a game where people who want houses, have to hand over green coupons to people who build houses, isn't the whole story. Consider that all this money-trading is by the 99%, who own a small fraction of the money. What if the 1% threw their money into the game? It would skew the prices and wages until some equilibrium was reached, maybe have no real effect on housing at all.
So the real question is, how do we motivate our workforce to create wealth (housing, food etc) for everyone? We have excess capacity to do this (Iowa creates enough food alone, to feed 2 USAs). Why aren't we doing it? Automation will make it not even take people at some point to accomplish it.
The money game will run out of steam at some point. Whether the robot overlords just give us all what we need, or let us starve, is up to our choices in the next couple of decades.
This is all tounge in cheek (sort of); but because today we use money to guide resource doesn't mean it will continue to be useful to do that.
Trust me when I say that the truly deserving individuals with true disabilities do not want to sit on their asses, deservedly or not.
The part where it's "psychologically healthy to want to make the most of your life" holds just as much for them as for everybody (and it's arguably even more important for them). It doesn't take a very long time of sitting on your ass to realize this, either.
Just wanted to point out that a lot of people who can't work, generally want to, very badly.
If you can't differentiate between capitalism and scientific peer-review as separate processes for separating wheat and chaff, why should I take your word on the ethics underlying fundamental economics, ie: that "he who does not work deserves not to eat"?
Why do you think scientists want to publish in the best journals like science and nature? There is a healthy amount of competition in science too. It's what drives people to get into the academy, or get awards like the Nobel. It's what creates great science, but it also creates politics in research.
There's a number of parallels between capitalism and academic research.
Well, on a more serious note, it would be, "The subtle resource starvation will continue until you become more valuable and productive."
Would the "lower classes" in academia lacking health care result in more academic productivity? Actually, no one really disagrees about these things in an absolute sense. It's more where people want to draw the lines.
"The subtle resource starvation will continue until you become more valuable and productive."
Yes, and this is the reason society improves over time. Drastically so.
In other words, it is little value to me if you decide to pursue art history because there are enough art historians in supply. You would need to out-compete ones with greater experience than you to make a living. It doesn't help society to add +1 to that pool. On the other hand, it is quite valuable to pursue a STEM degree because the skills, research, and knowledge you attain are in demand.
The system, works. Society improves over time, and everyone is rewarded. Everyone is(should be) thankful.
Bull. The funding for your "STEM" (come on, tell us what field you actually did) grad degree didn't come from supply and demand on an open market; it came from government research funding.
>"The subtle resource starvation will continue until you become more valuable and productive." > >Yes, and this is the reason society improves over time. Drastically so.
The fact that you have noticed an optimization process acting on society optimizes society is not a great insight. The fact that you failed to notice the current optimization process profoundly mismatches our values and intentions is a major misstep of yours.
Which is driven by the market. If art historians were all of a sudden extremely profitable then you bet your ass there will be a massive increase in gov't funding at their graduate level, due to market demands. Grant applications have to stress the importance of their research (and often times potential for profit) to society. The fact that you fail to see immense competition in gov't research funding shows how high your blinders are.
>"The fact that you have noticed an optimization process acting on society optimizes society is not a great insight. The fact that you failed to notice the current optimization process profoundly mismatches our values and intentions is a major misstep of yours."
Don't shove your values on me. Un-targeted welfare steals limited resources from those who truly need it. Swallow those values whole.
I don't understand why the 'Basic Job' idea doesn't get more traction. For all of the talk about a 'post work' world, I still see plenty of work that needs doing, every day.
Seriously, make-work is a horrible idea and a gigantic waste of resources. Basic income frees people to live their lives and contribute to society in ways that are undervalued by the labour market such as writing, creating art and music or caring for children, the elderly or chronically ill.
How many people might choose to start a small business if they have the security of a basic income? It seems to me like a potentially staggering number of people.
Imagine I, for whatever reason, accept a Basic Job from the government. The job is, by design, bad. I'd rather not do it. So my dream scenario is that I officially hold a Basic Job and draw its meager salary, but instead of doing whatever work it supposedly entails I sit at home and watch TV.
This scenario isn't just an improvement in my life -- it's also an improvement for everyone handling me! The work doesn't need to get done; it's only there as a penalty for me, to encourage me not to draw the Basic Salary if I don't really, truly need it. So when I save myself some effort by not showing up for work, I also save my handlers effort that might have gone into overseeing me. Just as it's easier for me to stay home, it's easier for them to pretend I didn't than to track whether or not I did anything. So overseeing Basic Job is conceptually pretty difficult.
I don't claim that this is more or less difficult to deal with than the problems of any other welfare system, but it is an obvious and fundamental flaw in the concept, and might help explain why it's hard for Basic Job to get traction. On a shallower level, the concept of "pay someone to dig a hole today and fill it in tomorrow" (a.k.a. The Basic Job Concept), has been the go-to example for exactly what we don't want government to do for a long, long time. That can also make it difficult to get traction.
This is a fundamental misunderstanding. BJ is work that is not worth doing at current market prices. I.e., picking up garbage in the park might be worth $4/hour, but minimum wage is $7.25/hour. If we spend $7.25 more and get $4.00 worth of value out of it, we lost $3.25.
If we are already spending $7.25 on welfare/BI and getting nothing in return, we are losing $7.25. If we demand that recipients work for their money we lose only $3.25. As long as the BJ workers are not destructive, we lose less money than we otherwise would with welfare or a BI.
Also, the jobs need not be "dig a hole and fill it in" - they can also be "walk around town and find potholes to fill tomorrow" or "there is garbage on the streets, go clean it up". It's not as if we have a shortage of things that would be beneficial if we did them. They just might not be worth doing at current prices.
If the work is digging holes one day and undigging them the next, overhead here is low. If there's some other system behind what the jobs are and how they get filled, potential for corruption seems extremely high. Say I'm a Denny's and I'd rather not pay so much for my kitchen staff. Can I list all the positions with Basic Job and kick back to the administrator when he sends me someone?
Germany has no minimum wage and extremely low unemployment. What would their Basic Jobs be?
Not at all. There are things that provide economic value that is hard to capture. Determining what those things are and how to value them is going to be messy, though.
Arguably the only good thing that came of this was that equal pay for men and women was also assured by their constitution.
Of course, that also doesn't mean we shouldn't eliminate the incentives that contribute to inefficiencies being preferable. There are plenty of scenarios where people are employed to dig a proverbial hole and others are paid to fill it (patents and copyright enforcing intellectual poverty; interest on public debt, etc), even if each side spares no expense and might use the best tools available. If we were actually solving problems, prices would be going down and people would be happily unemployed (because there were less problems to resolve and less to need money to buy) at the same time as quality of life were going up. That is not what is happening.
Capitalist corporations don't want/are unable to utilize them. Don't confuse them with the economy which is far more grandiose and inclusive than that. There are millions of ways for humans to create value for other people, most of which would be unprofitable for capitalist corporations to pursue.
There are cheaper policies than BI which don't do this. One example is Basic Job - if you need a job real bad the government gives you a really bad job.
This has no poverty traps, and (unlike BI) has no disincentive for work. You also get to avoid spending money on people who don't need it, and additionally society can derive some marginal benefit from the work people do (e.g. public spaces can be cleaner).