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Finland Considers Minimum Income To Reform Welfare System

jones_supa writes: The Finnish government is considering a pilot project that would see the state pay people a basic income regardless of whether they are employed or not. The details of how much the basic income might be and who would be eligible for it are yet to be announced, but already there is widespread interest in how it might work. Prime Minister Juha Sipilä has praised the idea, and he sees it as a way to simplify the social security system. With unemployment being an increasing concern, four out of five Finns are now in favour of a basic income. Sipilä has expressed support for a limited, geographical experiment, just like Dutch city of Utrecht is executing this autumn.

38 of 755 comments (clear)

  1. 4/5 in favor by Anonymous Coward · · Score: 2, Insightful

    does that say that 1/5 is paying for it?

    1. Re:4/5 in favor by danbob999 · · Score: 5, Insightful

      Nope, it doesn't. Believe it or not some people are not 100% selfish.

    2. Re:4/5 in favor by Anonymous Coward · · Score: 3, Insightful

      Yes, exactly. The 20% of people who would stand to gain from this that don't want it are not selfish.

    3. Re:4/5 in favor by Kohath · · Score: 5, Insightful

      Who is "selfish"? Is the guy who wants to keep the wages he earned in his paycheck "selfish"? Is the guy who wants benefit money for doing nothing "selfish"?

      Maybe labeling people "selfish" and then thoughtlessly dismissing their concerns isn't really a useful way to analyze policy preferences.

    4. Re:4/5 in favor by nine-times · · Score: 5, Insightful

      That's a good snarky response, but I actually really hate when these discussions get boiled down to "selfishness". First, because it has a tendency to turn into the same old discussion where one side is moralizing and the other side is presenting some kind of counter-intuitive argument about how "selfishness" is actually a productive impulse. It's boring

      But more than that, I think it throws the the discussion off track from the real reasons to do something like this. They are probably looking at a "minimum income" to replace other forms of welfare because they believe it's a better policy. It may be easier and cheaper to administer. It may be more economically efficient. There may be real, practical benefits to a policy like this.

      To give a simple sort of example, I'm in favor of providing free vaccines to common illnesses to poor children, even if it means slightly higher taxes for me. There are selfless humanitarian reasons to support that kind of thing, but my motivations are not really all that selfless. I have three very selfish and practical reasons why I support it: (a) If I'm ever poor and have kids, I will want to get vaccines for them even if I can't afford it; (b) Paying for vaccines today is cheaper than paying for the illness tomorrow; and (c) Vaccinating everyone else in society cuts the chances of me or my loved ones becoming sick.

      So going back to this plan, I'm in favor of whatever country I live in providing an effective social safety net for a few different reasons. First, I may find myself in a bad position sometime in the future, and I may need that safety net myself. I never have, and I hope I never will, but I possibly could. Beyond that, there are various reasons to think that having a good safety net can be good for society, as well as good for the economy. It removes some of the motivation for hopelessness and crime. If removes some of the hindrance on business to provide those needs for their workers. If it helps get workers back on their feet, enabling them to be productive, then that will help the economy.

      I know there's a sort of "common wisdom" that says you need extreme, brutal poverty as a possible consequence in order to motivate people to work, but I just don't really believe that. I don't think that kind of suffering helps anyone. I don't think increasing income inequality and rampant poverty are good for the economy. I know a social safety net costs money, but I would support a good one, funded with my tax money, for some very selfish reasons.

    5. Re:4/5 in favor by michelcolman · · Score: 4, Insightful

      Unemployed people already get paid (far too much) in most European countries. Like I said, you sometimes even lose money by accepting a job (minimum wage not far above unemployement, and having to pay for car and other expenses, for example). So if anything, it's the current system that's making people stay at home. With the new system, you can accept any job and increase your income right away. If you don't like the job, quit and look for a new one. With the current system, if you accept a temporary job which you don't really like and then quit afterwards, you have to go through a waiting period again. So people don't accept those jobs for fear of losing money instead of making more. With the new system, there's no such fear. Accept any job, quit if you don't like it, look for something new, no paperwork, no hassle, no risks. People will work more.

    6. Re:4/5 in favor by rtb61 · · Score: 2, Insightful

      I have heard poor people say that would rather starve to death or freeze to death or be punched in that face over and over again, rather than eat or sleep in a warm bed or not be punched in the face. Well, poor, crazy people at least or rich people claiming to be poor people on the internet, yeah, those buggers do it all of the time ;D.

      Easiest way to subsistence payments (this to replace the theft of the right to a subsistence existence, starve or work or kill) to all is nationalise financial services, so the profits become tax paid. So kick out all private banks and insurance schemes and all the government can ensure safety in the event of loss or can lend money with force of law, both very reasonable propositions if you really think about it.

      --
      Chaos - everything, everywhere, everywhen
    7. Re:4/5 in favor by CastrTroy · · Score: 3, Insightful

      It's not about giving out welfare or not giving out welfare in this case. It's about what hoops they make people jump through to get the money. With minimum income, there's no hoops to jump through. You don't have to prove you are trying to find work, and they don't have to police the people receiving the money to ensure they are trying to find work, or whatever other types of roadblocks they come up with. The system costs less to run because there is so much less bureaucracy. People will generally want to find a job, as minimum income isn't generally a very comfortable lifestyle.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    8. Re:4/5 in favor by Anonymous Coward · · Score: 2, Insightful

      The phrase "those people" in this context clearly refers the the aforementioned people being put on welfare or disability. I'm not sure what point you or the GP were trying to make unless you were trying very, very hard to read a derogatory meaning in a simple, grammatically correct (and mostly unambiguous) phrase where there was none.

    9. Re:4/5 in favor by bondsbw · · Score: 3, Insightful

      I really like this kind of system. It simplifies the tax code, reduces administrative overhead, and creates incentive to be a productive part of society.

      My main criticism is that free money could be used for things other than basic needs. Someone gets a nice 75 inch TV instead of paying for food and clothes for their kids, and then complain to the government that their kids can't be left to starve. Someone else puts the money toward drugs and hookers. Eventually the government caves and puts more money into the system, and before you know it the incentive to work has disappeared.

      So I would like to turn this into a restricted debit card that divides the total based on each specific type of use, such as food, clothing, shelter, child care, transportation, etc. The amounts can vary by region (e.g. San Francisco would need higher allotments for housing) and other details like number of dependents.

      --
      All my liberal friends think I'm a conservative, all my conservative friends think I'm a liberal.
    10. Re: 4/5 in favor by Anonymous Coward · · Score: 0, Insightful

      While the picture you paint isn't necessarily completely out of touch with reality...you leave out a very inconvenient counter balance. Remove the incentive (or drastically weaken it) to do necessary jobs that nobody particularly wants to do and you risk a collapse of the system.

    11. Re:4/5 in favor by Quirkz · · Score: 4, Insightful

      Well, we've got a theory and a counter-theory. Sounds like this is a fantastic experiment to attempt and see how it goes. If it's disastrous, they can change it back or attempt refinements, while the naysayers say, "I told you so!". If it works well, others can learn from it and put it to use. I'm glad someone's trying it so that we'll have some better data points.

    12. Re:4/5 in favor by Immerman · · Score: 4, Insightful

      Having known a lot of people on welfare growing up, I think the biggest problem is perverse incentives, mostly tied to eligibility requirements. If they lose $0.50 in benefits for every $1 they earn, then not only have you given them that "comfort zone", you've effectively cut their paycheck in half. Would you work as long and hard as you do for half the money? Now imagine you're also having to deal with the discomfort and abuse typical of minimum wage jobs, and earn less than $4 an hour for your trouble. Worse, a lot of benefits fall off in sudden steps, so your heard work and dedication earns a $0.50 raise, and suddenly you are effectively making substantially less per month than you were before. The game is rigged to foster dependency, only the most capable and driven have a realistic path to escape.

      I suspect a universal basic income would provide both lower costs and provide more incentives - no eligibility requirements, no bureaucracy to assess it and game the system in exchange for favors, no shame or social stigma associated with receiving it. Just everyone getting a monthly "social dividend" check that they can rely on, and getting paid full value (minus taxes) for their labor. Then, as your earned income increases, the taxes you pay will transparently neutralize the basic income.

      If you wanted to get really crazy you could explicitly base the size of that check on, say, a percentage of GDP, and suddenly everyone also has a personal stake in the economic health of the nation. GDP down 10% this year? You're feeling it in your monthly dividend check, and even if you can't find a paying job you have incentive to try to find some way to contribute to society and help the recovery.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    13. Re:4/5 in favor by AmiMoJo · · Score: 3, Insightful

      Don't believe the hype. There are lots of media pieces and TV shows about all the scummy people living on benefits and proud of it, but in reality the vast majority want to work and better themselves. The level of benefits isn't that important, what matters is that jobs area available and that they pay reasonably. In the UK some people end up in a situation where if they take a job they will lose their homes as benefits are removed. By the way, the solution to that isn't to lower benefits, it's to raise wages.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    14. Re:4/5 in favor by ShanghaiBill · · Score: 5, Insightful

      Nobody knows what all the costs are in doing this.

      In theory, it could be cheaper than the current welfare system, because administrative overheads are lower, and incentives are better. Since everybody gets it, there is no eligibility test, and no application forms. You get the same amount whether you work or not, so there is less disincentive for employment. But there could be unintended consequences. Taxes may go up, giving companies an incentive to locate elsewhere, and the wealthy an incentive to emigrate. If the benefits are generous, they may pull in non-working immigrants from the rest of the EU.

    15. Re: 4/5 in favor by Anonymous Coward · · Score: 5, Insightful

      Surely if the job is not wanted but necessary, it is worth paying more for it. Supply and demand.

      You don't get to force demand by threatening someone with starvation or incarceration for not doing that job.

      Someone has to clean the toilets. Your CEO may think it a lowly job, but how much would you have to pay THEM to do it? Vastly more than they are paid for their current job. Surely therefore the job should not be minimum wage. It's worth more than that.

    16. Re:4/5 in favor by PraiseBob · · Score: 4, Insightful

      Are you aware that you personally, could quit your job, go on welfare, and sit around at home all day, and scrape by with just enough money to eat and keep a roof over your head? Why do you work when you don't "have to"?

      Now apply those thoughts of why you work, to other people. It turns out most people are similar, and have hopes and aspirations, want to provide a better life for their families, and want to pursue hobbies, and go to fun places, and so on. The vast majority of people have ambition! Do you really think that fear of starvation is the ONLY thing that makes people get a job?

      You are showing an extreme lack of empathy, and making a lot of assumptions about poor people not having hopes and dreams. That honestly says a lot more about yourself than you realize.

    17. Re:4/5 in favor by pipingguy · · Score: 4, Insightful

      "There are four ways to spend money. You can spend your own money on yourself. When you do that, why you really watch out for what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well then, I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend somebody else’s money on myself, then I’m going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it costs, and I’m not concerned about what I get. And that’s government. And that’s close to 40 percent of our national income."

      - Milton Friedman

    18. Re:4/5 in favor by Chris+Johnson · · Score: 3, Insightful

      If you're that kind of rich person your time is too valuable and you'll do a terrible job of redistributing what little income you are prepared to let go.

      Seriously. You're not going to spend hours out of your day finding poor people and inspecting them to see if they're worthy. You'll do nothing of the sort, so your 'support' will trend towards zero, as the people you know won't need it.

      There will be people who'd meet your standard, but you won't know them. Welfare case workers will know them. You'll never have to see them or the ones who aren't so worthy in your eyes. You don't hang around people like that so you have no basis on which to grade them for worth.

      Just be taxed and hush. I really doubt you intend to work as a welfare caseworker for the rest of your life, so you're actively choosing not to know the answers to the questions you assume must be asked. That ought to be enough to disqualify you from the chain of command there.

    19. Re: 4/5 in favor by topology · · Score: 3, Insightful

      Why would things be different under the proposed system? We don't have slaves now, and those jobs get done. They typically have higher pay to compensate for the undesirable aspects of the job or risk associated with them. Someone is choosing to do those jobs instead of other more desirable jobs.

      In one scenario you have a choice between Y+0 compensation for job J_Y and X+0 compensation for J_X, Lets assume that J_X is the more undesirable job. The proposed scenario is that you would have a choice between Y+B and X+B, where B is a minimum stipend to cover the cost of existence in society. At worst, Y is going to be commensurate with B. The relevant metric is going to be the ratio (X-Y)/B. In the worst case scenario that boils down to X/B - 1. If the difference in pay for the undesirable job was high, then (X-Y)/B is high and you would still choose to do the undesirable job for its higher compensation. If (X-Y)/B was small then the difference between X and Y is small and if you're smart you would be working the more desirable job for slightly less pay.

      The only places where B would have a negative impact on jobs is when X/B-1 is negative. Its better compensation for doing nothing. Since B is so small anyway, any job where X/B-1 is negative is essentially exploitation. You shouldn't be working that job anyway as it doesn't sustain your existence.

    20. Re:4/5 in favor by PopeRatzo · · Score: 5, Insightful

      Not wanting to give out welfare isn't a selfish proposition.

      We need to start looking at welfare in a different way. We will soon enter an age when we don't need "full employment" for everyone to have all the goods and services that they need. The late-stage capitalism where the more things are automated, the harder working people have to work, is just not sustainable. The only reason we have that situation today is to support the supply-side perversion of capitalism. It's already groaning under the weight of supply-side economics, and the burgeoning disparity of incomes and wealth is the evidence. When you have more than 40% of the US work-force making less than $15/hr, and 80% of people not having enough savings to retire on by age 68, social and economic disruption is going to occur.

      Rich people can hire only so many servants and drivers and people to wash their cars and be nanny to their kids. There are only so many people needed to service the robots. Only so many people needed to do the dirty work. And those are just the low-paying jobs. The middle-income jobs have already started to go. How valuable you think your ability to program Java is going to be by 2017? Or for that matter, by this Christmas?

      So, we can decide that a guaranteed minimum income is something we need, or we can decide to become a society where 67 year-old beggers fight with 25 year-old beggers who fight with 12 year-old beggers as they line the streets. As someone who's spent time in such countries, let me tell you, it's not that great to be a well-off person in a place where everyone else is dirt poor. It might appeal to the big-L Libertarians in the crowd, but for the other 99%, it's not a pleasant proposition.

      --
      You are welcome on my lawn.
    21. Re:4/5 in favor by Impy+the+Impiuos+Imp · · Score: 4, Insightful

      Ironic that planned economies have much worse pollution because they have neither the political will via democracy to clean it up, nor the economic might to spare.

      Russia in Siberia was spilling an Exxon Valdez a month all over the place due to leaky pipelines.

      I'll take our much lower pollution and higher wealth due to capitalism, kthxbie.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
  2. Re:basic income? by Anonymous Coward · · Score: 5, Insightful

    Nope, it's conceptually different. Most ideas of "welfare" are based on "We'll help you, but only when you're worthy, and the goal is to kick you off it" which in turn leads to a whole system to enforce those rules. Which means a lot of it goes to paying people to run that system.

    Basic income, however, is simply the idea of making sure people have the money to pay for the things they need to live, and avoids a lot of the expensive infrastructure and management.

  3. Re:how does "limited, geographical experiment" wor by Calydor · · Score: 3, Insightful

    Didn't live in $town before January 1st, 2016? You're not part of the experiment. No exceptions.

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  4. Re:Reform welfare by hackwrench · · Score: 5, Insightful

    Because we don't need everybody working all the time in order to get our needs and wants met, perhaps? Maybe?

  5. No excuse for them to be "unemployed" by MikeRT · · Score: 2, Insightful

    I know some elderly people who barely worked an honest day in their life. Now they expect to live on Social Security because it's what a "civilized society does." When I've brought up the subject and suggested that they are morally obligated to give something back for the nearly $10k/year they get from a fund that they never felt the need to contribute to they freak out about how selfish that suggestion is.

    And that's why it won't work in the long run. It'll acclimate people to the idea that they have a right to public money just because they showed up, not because they're part of society and it's part of a set of reciprocal rights and duties.

    1. Re:No excuse for them to be "unemployed" by FranTaylor · · Score: 4, Insightful

      And that's why it won't work in the long run. It'll acclimate people to the idea that they have a right to public money just because they showed up, not because they're part of society and it's part of a set of reciprocal rights and duties.

      that's precisely why it WILL work in the long run, as mechanized society takes away more and more jobs, nobody is going to expect to get an actual job

  6. It will be very interesting to see the results by gweihir · · Score: 5, Insightful

    The west has a very serious problem created by increased efficiency and automation: How to make sure enough wealth reaches all citizens to that they can live decently (ensuring freedom from social unrest) and spend locally (ensuring a working economy). The idea of a base-income for everybody is one possibility that has merit, in fact it seems to be the only one with a good chance of working. "Create more jobs" has basically been a failure, and nothing else suggests itself. The base-income for everybody may still be a failure, but it needs to be tried to see whether it works.

    --
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  7. it makes a rational assumption. by nimbius · · Score: 2, Insightful

    In america we assume people are poor because they are lazy; its a very childlike answer to an enormously complex question. Further simplifying our approach, we generally only define wealth by financial terms. we base our welfare system in part on an inherent desire to punish the recipient for their perceived lack of participation and drive to accumulate money. a more appropriate analysis is to begin with the following assumption: a set of people will never contribute monetarily equal or greater amounts to a society in which they live. This may be due to a number of uncontrollable constraints like illness or ineptitude, but could also be a reflection of your society. Perhaps there is nothing worth doing in the case of the 'working poor' or perhaps there isnt any pay (and perhaps none is expected) in the case of many artists. The question is not how to motivate these people, but how to ensure they are sustained at a comfortable level proportionate to the societies acceptable living standards. In the united states our unspoken answer to this is death on skid row by preventable disease. in the USSR the answer was that everyone according to their means contributed at very least some working effort. artists would do art, the sick would work to get healthy, and others would contribute to foster the wealth of the society as they could, be it intellectual or monetarily.

    --
    Good people go to bed earlier.
  8. Re:basic income? by Archangel+Michael · · Score: 1, Insightful

    Looks good on paper. But when enough people stop working and still expect a "basic income" check every month, it will quickly collapse. Further, the definition of "basic income" will suddenly include High Speed Internet, a car payment, a house payment, water, electicity ....

    And as taxes rise on those still working, to pay for those that refuse to work, and they start to charge more, creating runaway inflation the cries for increases to "basic income" not being enough to live .... the death spiral of socialism will quickly prove that the idea looks good on paper, but doesn't function in reality.

    Or, as my daddy used to say, "In theory, theory and practice are the same. In practice, they are not"

    --
    Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
  9. Re:A country sized face palm event. by Anonymous Coward · · Score: 3, Insightful

    Lets unpick this nonsense:

    1. Taxes aren't "retard theft based welfare" they are the price for living in a civilized society. Yes, they pay for welfare - they also pay for the military, the police, the courts, infrastructure, and a whole other bunch of things that make it much better to start a business in Western Europe than in Somalia.

    2. The idea that people need to be whipped into working is based on your own hatred of mankind rather than any economic or motivational argument. Simple threat is no motivator at all for tasks other than purely menial ones - and this is part of the reason the USSR collapsed and why totalitarian systems tend to be economic basket cases. Holding a gun to someones head is just about good enough when you are making them mine coal by hand, but it doesn't produce good C++ coders.

    3.You compound this by demanding people do 40 hours a week of labour that you clearly consider demeaning. Again, you just don't like people. You admit you want to see people suffer. The welfare state does not exist for your personal schadenfreude - it exists to stop people falling through the cracks of society so that later on, when they pick themselves up again, they can contribute. The idea that people are just brutes who need to be kicked to make them do menial labour belongs in the 19th century, not in a modern technological society where most jobs involve complex mental effort.

    Thankfully, people in the Netherlands, Finland and elsewhere are starting to listen to rational arguments about intrinsic motivation, benefit traps. Bitter curmudgeons like you are being rightly ignored.

  10. Re:A country sized face palm event. by turp182 · · Score: 5, Insightful

    I'm in the United States, for reference.

    I'm assuming you've never been on the bottom economically.

    I volunteered at a food bank for a few years.

    The clients mostly consisted of:
    1. Veterans on the streets because of mental problems.
    2. Mothers/Grandmother's looking after their children's kids (many of the "children" and spouses were in prison for various crimes)
    3. Drug/alcohol addicts with no options for treatment (because of no $)
    4. People working minimum wage but not making enough to live
    5. People with physical disabilities including disfigurement (someone with heavy facial burn scaring isn't likely to get a retail position).

    Many of them wanted to and were capable of work and were very happy to take very occasional menial work at the church's events (dish washing for example). They just didn't have opportunities available. The average high school student would get the job before them.

    Anyway, to me, there is an entire class of people that we shouldn't kick. I feel that welfare should provide these people with, at a minimum, the same level of services provided to our prisoners. People that have harmed society are treated better than those who are just unfortunate in the US.

    For these people, time isn't money: Time is Food.

    --
    BlameBillCosby.com
  11. Do "rich" people quit working? by blindbat · · Score: 3, Insightful

    There are a lot of people that have great wealth but keep working because they enjoy what they are doing. To suggest that everyone will just bail on work is not a good argument. Furthermore, consider how many people could continue education, or pursue arts, contribute to non-profits, etc. Our whole culture could shift in ways that we cannot fully predict with the security of a basic income.

  12. Re:didn't happen in Manitoba by Anonymous Coward · · Score: 1, Insightful

    um no. Archangel said it was unsustainable, not that there were not short term benefits. In the ole USA, almost 65% of the people on welfare at any given time will stay on welfare for 8 years or more. Children from welfare families are 7 times more likely to become dependent on welfare.

    To me, teenagers working less is not a positive. The teenagers here in DC don't work and all they do is run around and shoot at each other. Homicides are up 50% this year. Using a small canadian town to extrapolate across large non-homogenous metropolitan areas is a mistake.

  13. Re:A country sized face palm event. by nbauman · · Score: 4, Insightful

    Here is a crazy idea if you don't work, you don't eat.

    Yeah, that's what Lenin said. "Those who do not work, do not eat."

    I personally see nothing wrong with letting people suffer as a form of motivation.

    I see nothing wrong with making you suffer as a form of motivation.

    I think we should take away the assets of the wealthy, in order to give them a motivation to work. If we just let people sit on a multi-million dollar investment portfolio, they won't have any motivation to work.

    If the rich are so smart, when we take their money away, they'll just earn some more.

    It's like a chicken. When you take away her eggs, she'll lay some more.

  14. Re:didn't happen in Manitoba by inhuman_4 · · Score: 5, Insightful

    Tried and abandoned.

    There were a number of problems with the Dauphin study. The biggest being that it wasn't sustainable.

    To be viable economic policy needs to work in a closed system. The money given out through mincome needs to be matched by the money coming in through taxes. But the Dauphin system didn't work like that. Instead, the government pumped in outside money, without raising taxes to offset. So the people living in Dauphin got all benefits of socialist style government handouts, without the accompanying higher tax rate.

    No one doubts that many thing improved during the experiment. Improving the quality of life in a small community by pumping in free money from the outside is easy. The hard part is making it work as a system.

  15. Re:A country sized face palm event. by thinkwaitfast · · Score: 3, Insightful

    What if you take everything way from a wealthy person and a few years later they are wealthy again? Do you take it all away again and keep taking it away until they learn their lesson?

  16. Quitting to live off the dole...Less common by Firethorn · · Score: 3, Insightful

    I don't think people will be quitting their jobs to live on the 'free money'!

    Indeed not. One thing that I have noted to be lacking is the idea that the minimum income payment could be tuned. Too many people unemployed? Research suggests too many people are happy sitting on their asses at home? Nudge the payment down a notch. By the same token, if you have too many people who are actively looking for work because living on the BIG sucks, and the result of too many people looking for too few jobs, resulting in lower wages(and jobs aren't coming in from outside because of cheap(er) labor), you might want to consider notching it UP a bit.

    What? Increase payments? Sure - by increasing payments, more will be satisfied by it. This reduces the worker pool, increasing the bargaining power of the remaining workers. In addition, more money to the poorest means more purchasing of goods and services by them, which increases demand for workers to produce said goods and services.

    --
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