Finland's Universal Basic Income Called 'Useless' By Trade Union Economist (bloomberg.com)
An anonymous reader quotes Bloomberg:
Finland's basic income experiment is unworkable, uneconomical and ultimately useless. Plus, it will only encourage some people to work less. That's not the view of a hard core Thatcherite, but of the country's biggest trade union. The labor group says the results of the two-year pilot program will fail to sway its opposition to a welfare-policy idea that's gaining traction among those looking for an alternative in the post-industrial age. "We think it takes social policy in the wrong direction," said Ilkka Kaukoranta, chief economist of the Central Organization of Finnish Trade Unions, which has nearly one million members.
Since January, a group of unemployed Finns aged between 25 and 58 have been receiving a stipend of 560 euros ($600) per month. The amount isn't means-tested and is paid regardless of whether the recipient finds a job, starts a business or returns to school... Advocates say it eliminates poverty traps and redistributes income while empowering the individual and reducing paperwork... While limited in scope (it's conditional on the beneficiary having received some form of unemployment support in November 2016) and size (it's based on a randomly-selected sample of 2,000 jobless people), the Finnish trial may help answer questions like: "Does it work"? "Is it worth it"? And the most fundamental of all: "Does it incite laboriousness or laziness...?"
The trade union argues this UBI program would cost 5% of Finland's entire gross domestic product, making it "impossibly expensive."
Since January, a group of unemployed Finns aged between 25 and 58 have been receiving a stipend of 560 euros ($600) per month. The amount isn't means-tested and is paid regardless of whether the recipient finds a job, starts a business or returns to school... Advocates say it eliminates poverty traps and redistributes income while empowering the individual and reducing paperwork... While limited in scope (it's conditional on the beneficiary having received some form of unemployment support in November 2016) and size (it's based on a randomly-selected sample of 2,000 jobless people), the Finnish trial may help answer questions like: "Does it work"? "Is it worth it"? And the most fundamental of all: "Does it incite laboriousness or laziness...?"
The trade union argues this UBI program would cost 5% of Finland's entire gross domestic product, making it "impossibly expensive."
How do we measure the economics of the situation?
if the base income thing is successful? yes, likely. are we seeing some evidence, or at least some theory as to what will go wrong? nope. then please allow me to ignore this as yet another political jab and wait for the results, thanks.
If people become indifferent to unemployment, trade unions have no reason to exist anymore.
Here's the thing - basic income CAN theoretically not work out... but some an economist with a stake or two against it working is NOT evidence that this version of it hasn't panned out. Especially when it's posted on fricken Bloomburg news!
That's what the experiment is for. Instead, it's to see if the money spend on THIS style of program is as effective as the several other programs it can replace, and whether that replacement will be practical. It's money that will be spent in any case! You need experimental comparison to judge the merit of the approach.
Again though - until RESULTS are in, hearing some talking head berate the idea of it as not to his liking isn't helpful.
It's like folks who dismiss needle exchange programs to reduce communicable disease, without actually bothering to look at the numbers, and what the studies actually account for.
Ryan Fenton
I think the original has been improperly translated.
I think a more accurate translation may be:
'How dare someone try a system that treats everyone equally, and isnt controlled by US!
Our research shows that the best trade union members are poor and unhappy, we need more people like that!
The LAST thing we want is a feeling of happiness and satisfaction for our members, they they may not need us,
and if they dont need us, then how will we be able to take their money so we can live the high life?
No, UBI is a terrible, horrible idea, bad for everyone who matters, which are the leaders of our trade union movement!'
I haven't seen anyone come up with a good reason people wouldn't use basic income to work less and be lazy. I can tell you, if I had guaranteed income for life, I would probably not ever work again.
"First they came for the slanderers and i said nothing."
UBI is very different when the sum is enough to live or not.
If it is too low (and at 560 euro/month it is certainly too low to pay housing and food), then people still have to accept any job to live, and employer can pay less because decent living costs are already partially covered by UBI. In such a situation, UBI acts as a social support to employer without taking any power from them.
OTOH, with a UBI high enough to cover basic needs, things change a lot. Employers need to convince people to enroll them instead of the other way around, while people can also choose to start businesses that have social benefit without being profitable.
Of course that consideration do not cover the huge question: how to find the money for high UBI? Some specialists consider a high UBI possible if all national labor costs are socialized: Instead of paying employees, employers contribute to a labor fund which in turn pays UBI to people. I have no idea if this is workable or not
Well, if none of what you do earns any income, people will say it isn't work.
So one month into a two-year program, it has been declared to be unworkable? That is 1 out of 24. That is ~ 4%. Really?
The problem is as I said above. How do we measure the economy of any of this? The current system has money be the measure. It's nowhere near perfect, but once you start giving money out, it seems to me that something is going unmeasured.
If that can't work out, what then? "You'd have a job if you simply looked hard enough" combined with "you don't deserve to be paid a living wage for this work no matter how long your hours are" will lead to starvation and violent rebellion. It can't *not* lead to that; if everyone's being tossed out on the streets because they at best can't keep up with inflation and at worst are entirely without income.
Banks will stop agreeing to finance any individual whatsoever once they can't even get their money back due to no buyers for foreclosed homes. Theft will skyrocket, because the law stops mattering if your choice is between obeying it and not dying. Sure, those in the upper crust of the .1% are thinking "that'll take care of the population problem", but there comes a point where even their private armies will turn against them.
Of course it's probably around that time that they'll have replaced it all by far more loyal drones...
an give it to everyone to really see how it will pan out. Then maybe we can stop wasting so much energy debating hypotheticals.
How do we measure the economics of the situation?
That's a very good basic question to ask.
Too many times people get up on the soapbox of the world and give their opinion about this or that policy, and one can never figure out whether they are experts speaking from experience or just political hacks.
People giving an opinion in public is just noise, and people bolstering their opinion with rationalization and/or analogy is noise masquerading as signal.
We shouldn't give any credence to anyone who tries to sway our opinions about, well... anything, unless they can back it up with facts that are suggestive or studies that can be examined in detail.
I'm especially suspect of the "it will only encourage some people to work less" comment, as if that is a bad thing. It might be perfectly acceptable for some part of society to have to work less, or perhaps not to have to work at all. There's a parallel and opposite rationalization that holds that people will accomplish great things when given enough leisure.
Making that statement ("some people" is an obvious attempt at being divisive, as in "you know the type of people I mean") in the way that he made it is simple emotional manipulation. Also from the article are such gems as "We think it takes social policy in the wrong direction", meaning basically "I don't like it, in an unspecified and indeterminate way".
He's not claiming that it doesn't work, he's claiming that he doesn't like it (and neither should you).
You do it by trialling it in selected groups.
One obvious way is to take ten thousand people, who are possible candidates, and flip a coin ten thousand times to see if they're enrolled or not.
This lets you fairly robustly measure how much more or less the people work, and other costs.
For example, if you have a 'normal' benefits system, you have costs in the system about investigating if people are working while claiming benefit, prosecuting them, making sure they're looking for work, penalising them if they're not, advising them on what they must do to get into work or face sanctions, ...
In UBI, some or all of these costs go away.
Ideally, it would also try to count productivity of people who are working, with or without UBI.
So, you think sickness benefits, unemployment benefits, state pensions, etc are somehow not 'giving money out'? They are somehow 'measured'?
The whole point of a (properly designed) UBI is to replace ALL of that, with a single right of income.
The advantages include removal of the huge amount of bureaucracy, management costs, corruption, and fraud.
Basically it means everyone gets treated EQUALLY, and you would be amazed how many people hate that idea.
Usually because THEY want to be the ones deciding who is 'worthy' of support.
The cost is self-adjusting, because basically all countries have graduated income taxes, and UBI is also taxed, so people with large incomes
just end up repaying most of it in tax anyway. A country should use a combination of personal tax, and savings from the scrapping of all the broken
other forms of social benefits to fund it.
Of course that is putting it simplistically, however that is the formula of a true UBI, which many haters (usually those who currently profit from control
of existing welfare schemes) work very hard to ignore.
UBI is not 'free money for all', it is an acceptance that welfare is a sensible right in society, so we should remove the broken and inequitable systems
that current exist, covered in bandaids, and replace them with a simple single system that treats everyone equally, is low cost to manage, and almost
by definition free of corruption and fraud, because it is so simple..
I haven't seen anyone come up with a good reason people wouldn't use basic income to work less and be lazy. I can tell you, if I had guaranteed income for life, I would probably not ever work again.
Here you go.
You have to realize that "work" may not be going out and doing a 9-to-5 job in the traditional sense. Newton made a bunch of his discoveries while on forced leave from Cambridge due to the plague, and there are many historical examples of well-to-do scientists and explorers and artists who made great discoveries because they had the leisure and means to do so.
Stephen King was dirt poor for much of his early life, but he still wrote because he loved writing. Imaging how much more he could have contributed to popular literature if he didn't have to take back-breaking jobs as a young man to make ends meet.
Not everyone will be Newton or King, but anyone who takes up a hobby or minor occupation and becomes really good at it might extend the frontiers of that area. All of this has the potential to enrich our society and further our scientific knowledge.
So, similar to the first part of Tim Minchin's "Cont(ext)": https://www.youtube.com/result...
Unless all participants are grouped together geographically, your experiment will be invalid. For example, one criticism is that UBI will lead to price inflation. You can't measure that when the number of participants in the experiment is dwarfed by the rest of the population several (dozens or hundred) times over.
Most of those you listed are things an employee pays for from their gross income. At least in the places in the US with which I am familiar.
Yep, true.
I live in a place where most of my friends who do things like art, medial care, science, are barely getting by. I would dive into that research project that may never pay if I didn't have to choose between that the cheap food payed for by change scraped out of the couch.
Frankly i find it amusing that anyone thinks there is any option other than a basic income for all people. I under stand that there is a huge pile of beliefs and platitudes that will put many minds in opposition to a free income. But when human labor, either intellectual or physical is no longer needed there is very little choice. We can list a bunch of vital issues that relate to simple miseries or fears that are caused by poverty. Alcoholism, mental illness, sexual crimes, drug addictions, mad bombing such as the Oklahoma City Court House, armed robberies, economic crimes and many more all are related to people simply being unhappy. There is a huge tax issue due to these unhappy or frightened people acting out. Now imagine a system in which more and more people are in fear of sleeping on the streets, going hungry, or needing medical care that they can not get. That creates a climate of a brewing and ultra violent revolution and also opens paths for our enemies to take over our nation. Today truck drivers know full well that their trade is quickly ending as do taxi drivers and delivery people. Construction people are still cloudy on the notion that their trade will vanish. Factory workers have already been sort of slaughtered. Retraining is a dead end. The new trade will vanish all too soon. Teachers are now being eliminated by computer led class rooms. In some cases lawyers are also already being replaced by computers. Surgeries are now done by robotic means. No trade is exempt and unemployment will soar. In real poverty the poor become dangerous and will not silently starve to death in some dark corner.
Every living thing on this planet is working as hard as they can. In payment we get the ability to ignore reality.
Those things are done on a much smaller scale than a proper UBI system would do. I don't believe that people should be treated equally. It has the same problems as attempting to decide who is worthy of support. One idea is that there should be plenty of opportunities for people to create their own inequalities. Getting ahead is becoming unequal.
Striving for equality results in people not getting what they could have because it results in inequality. Resources get squandered.
I believe that we are currently measuring the wrong things. In transitioning to a new economic reality, we have the opportunity to start measuring the right things, but we still need to figure out what those are.
"If you do not have basic security you cannot be rational,"
Exactly.
Not only does SAK say that the system may reduce the labor force -- for instance by tempting mothers of small children or those close to retirement to take more time off -- but the union also suggests that making it easier to refuse unpleasant jobs may create inflationary bottlenecks.
We have automation so that we didn't have to perform unpleasant of dangerous jobs! Not enough workers? AUTOMATE IT! Can't automate it? Pay people what the job is actually worth!
This is how the future should work.
Anons need not reply. Questions end with a question mark.
Here's the thing - basic income CAN theoretically not work out... but some an economist with a stake or two against it working is NOT evidence that this version of it hasn't panned out.
Business folk (the type that like exploiting cheap labor) are terrified they are going to lose their leverage on people so they are summarily declaring it a failure. It could have been the single most successful thing on day one and they still would have declared it a failure because it's a threat to their way of life. That is to say that their way of life is exploiting people's food/housing insecurity, the modern form of slavery.
Anons need not reply. Questions end with a question mark.
I think it's fairly likely that automation will make it increasingly hard to justify 40+ hour workweeks for the majority of citizens of developed countries. However, that hasn't happened yet.
The countries that are early adopters may regret it because it's easy for a population to turn into pleasure-loving layabouts. Look at the heirs of Sam Walton - has any one of them, with all the money and education thrown at them, had a significant positive impact on society, other than than to fund art museums and that sort of thing? That's the reason why billionaires like Warren Buffett and Bill Gates say that they'd rather give their wealth away to charity than pass it along to their children and grandchildren.
So I think we (USA) should sit back and watch what happens to other country's experiments.
Anybody heard of Google search?
Finland is no where near "automated" so the money is coming from someone else. Dream on socialist utopians.
Has anyone thought about the implications of large numbers of people not working? It's call unnecessary excess, i.e. disposable human beings. Now that's a real problem. Maybe the "elites" will want to "clean" up the planet. Try these for starters (and there's much more out there):
https://mishtalk.com/2017/01/09/living-wage-idiocy/#more-43272
http://www.zerohedge.com/news/2017-01-17/dangers-universal-basic-income
https://www.bloomberg.com/view/articles/2016-10-27/my-second-thoughts-about-universal-basic-income
An organization whose only reason to exist hinges on people being unable to tell their boss "Stuff it, slaver, I quit!" when he makes unreasonable demands is against something that enables people to just get up and leave jobs with insane employers?
That's unpossible!
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Must be a trade union for psychics:
The labor group says the results of the two-year pilot program will fail to sway its opposition to [Universal Basic Income]
Good thing they warned the Finnish government before they wasted time and money on that pilot program.
Only crack the nuts that crack. You don't put the ones that don't crack in the sack.
Most business folk are not the ones most keen to take improper advantage of people. Sure they make a business decision to move where the labor is cheaper, but what Trump is doing with Tariffs and such is no real skin off their nose, just telling them where it is most economical to redeploy. When my brother was in the military he sold books online that were discarded by other military people as they were deployed elsewhere. It bothered him not at all to completely refund someone who was not satisfied with a book's condition. My brother's LinkedIn page: https://www.linkedin.com/in/oc...
Why is this news? Why is it here? This sentence makes even reporting this entirely pointless "The labor group says the results of the two-year pilot program will fail to sway its opposition to a welfare-policy idea that's gaining traction among those looking for an alternative in the post-industrial age."
It's exactly like reporting neo-nazis don't like Jews much. Angrily shouting "Reality won't sway my opinion one way or another!" is the same as stating "I am a non sentient rock!" What, exactly, is the point of reporting, listening to, or acknowleding such an opinion beyond "oh look, a talking rock!"
Not an argument.
when you've decided not to abandon drug users to their fate. Basic income is an attempt to work around that issue by giving it to everyone so folks can't complain about what's 'fair'. That's pretty much what shoots social welfare down over and over again, folks don't think it's fair that you don't have to suffer. I've had nerd friends who felt angry & upset that kids today don't have to go through what they did (the bullying and what have you) post Columbine. I've pointed it out to them and they agree it's ridiculous but they can't shake it. Bottom line: People want to see other people punished for their mistakes the same way they were. Smart people get over that, but there's a lot of not-so-smart folks...
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
It's not Barack Obama's fault that a lot of people were born about 65 years ago. That's why retirees (and children, btw) are excluded from the labor statistics that functional adults use (U4, U5, U6--all of which look pretty good by historical standards)--and why the Breitbart set has to manufacture some misleading metric to placate their mouthbreathing outrage junkies.
Most business folk are not the ones most keen to take improper advantage of people. Sure they make a business decision to move where the labor is cheaper
And you have contradicted yourself.
Anons need not reply. Questions end with a question mark.
What figures are you using? Worldwide? Are the jobs as good now as the jobs that used to be around? My mom is a 64 year old Uber driver.
is that it conflicts with all of human history.
There is ample evidence of social & economic collapse under communal economic systems (and you're kidding yourself if you don't think that's what UBI is, because the only way to pay for it is to tax wealth so much that it becomes de-facto communism)--and there is basically no evidence to support the theory that society cannot replace the jobs lost to technological automation. People have been predicting the latter ever since the loom and they've been wrong every time (including *right now* BTW, where the unemployment rate in the US is quite low). I'm going to predict it will never happen, and at most I'll only be wrong once.
Sell your soul to Elon Musk!
What figures are you using?
U6.
My mom is a 64 year old Uber driver.
If your mom is underemployed (not working full time, for example), then she counts as unemployed in the U6 statistics.
"First they came for the slanderers and i said nothing."
No, I haven't. Key words are improper advantage, and keen. Business people in general have to compete with other businesses. If the costs are the same, they have no complaints with things like Trump's tariffs that make the labor in other countries more expensive. There is an article about the GoDaddy CEO saying that the American education system isn't up to snuff, so he needs H1B visa people. He is not most business people. If he gets his way, other business people will follow suit, but they aren't all fired up about him getting his way and wouldn't mind fixing the system and getting Americans up to snuff.
https://slashdot.org/submissio...
https://www.bing.com/search?q=...
The first link is to: http://unemploymentdata.com/cu... which links to: http://unemploymentdata.com/un... which says "I find it hard to believe that we are at full employment." Also these are apparently U.S. figures and not worldwide figures.
The entire reason UBI is going to become a necessity is because much of the world will soon be post-labor. Automation will make the vast majority of humans unemployable, probably by 2030, and no later than 2050.
The unions will argue that the appropriate response to this is to outlaw automation, to hamstring its progress by demanding that it adhere to ludicrous regulations where it is used, and to otherwise do everything in their power to keep their power, just like any other political entity. Most unions haven't served their members more than they serve themselves for decades. They are terrified of being irrelevant.
The U.S. spends 1.27 Trillion on Social Security Unemployment and Labor
https://www.google.com/imgres?...
That's just at the federal level and at a guesstimate is close to 8% of the economy. It would be great to eliminate that and get the number down to 5%
I'm not sure what you point is here, but in any of the graphs you linked to, there is no appearance of automation taking everyone's jobs. Which is the topic under discussion.
"First they came for the slanderers and i said nothing."
You made the point that "unemployment is low". I'm not sure what "low" is, so I depended on the articles to express some indication. The articles seem to indicate that unemployment isn't low. Furthermore, US unemployment is insufficient to determine whether there is a worldwide shortage of work, especially since Trump is doing things to make the US more attractive for businesses to employ people here as opposed to elsewhere.
Furthermore, US unemployment is insufficient to determine whether there is a worldwide shortage of work,
What numbers would you suggest using?
"First they came for the slanderers and i said nothing."
Sure money is a unit of measurement, but I have yet to see an analysis that what it measures is what anyone thinks it is measuring or that what it is measuring is the right thing to measure.
Some worldwide employment measure. I don't know that the figure exists, nor am I confident in existing measuring methods, but I'll take what I can get as having potential for being better than nothing, but the more evidence to that fact, the better.
I determine for myself my reason to exist. https://www.youtube.com/result...
and a lot of them will do exactly that. Your economy loses whatever productivity they might have contributed, socialists get more dependent voters to re-elect looters, and their kids grow up believing the world owes them a living.
You have only to look at the effects of multi-gerneration welfare dependents in the USA and the UK to know how destructive this is.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
There are people however that do need other people to give them a reason to exist. I will feed off them.
I don't care what's fair. I want people to get as much good as possible. When you start asking questions about what is fair and what is equal, you pull people down, not raise them up.
Yours is the second reply to my comment that displays the same fallacy. My point is not that you need others to define your reason to exist, my point is that without being useful to others you are of no use *to them as well*, which also implies you shouldn't expect them to carry you. There is no issue with you existing, there is an issue if you expect something from others for nothing from you.
You can't handle the truth.
The goal of projects such as these is to see how people would act if they had a guaranteed income for life. However, the flaw in this pilot (and all similar projects that I have heard of) is that it is only temporary stipend... I would act very differently if I had guaranteed income for 2 years vs for life.
If it was a 2 year income, I would pocket the money and keep working.
If it was guaranteed life-long income, I might stop working (depending on how much money it was).
The results of this pilot will be more or less useless.
Some people think it will work very well, some people think it'll be a total failure, and of course some people are in-between.
For anyone here in EITHER of the first two groups, you both think the results would be pretty clear cut - the result won't be ambiguous. Here we have an actual experiment to test it, and there are other similar experiments being done or planned. Here's a chance to prove that you're right, and possibly in a measureable way such that those who disagreed have to admit their prediction was wrong.
Are you smart enough, and do you understand the issues well enough, to come up with some fair criteria by which to judge the outcome of these experiments? Can you mark a goal line and say "the experiment will show that UBI does A by x%, without doing B by y%"?
Since you understand the issues, that means of course that you understand the opposing viewpoint, you understand what their concerns are. Since you're pretty sure you are very much right, you should be able to be a bit generous in marking the goal lines. If anyone can come up with some fair measures we can later use to see who is right and wrong, I'll post my prediction and if I turn out to be wrong I'll freely admit it.
That would be really cool if we could do that. I don't have too much hope - I think a lot of people shooting their mouth off don't understand at all what people who disagree are saying, and have no interest in understanding anything other than their own guess. The ad hominem attacks which are already so prevalent on very page strongly suggest that some commenters haven't a clue what the other group is trying to warn them about, and don't care to know.
Anyway, there are experiments in progress. Anyone have an idea of some fair to generous criteria by which to judge the results when it's done, can you set a goal line which those who disagree might think is a fair goal line that captures their concerns?
I live in Finland, so few comments about the SAK.
SAK is worker union that has jammed to 1970's.
There are only 2 things SAK is capable of doing:
1) Shouting "bigger pays of we will go to strike"
2) Shouting "you may not do any improvements for more flexible work contracts, or we will go to strike".
Absolutely no understanding that the world economy has changed since 1970's, and absolutely no understanding od thet fact that finland has been belonginf to EU for over 20 years should make things very different than things were in 1970s.
Also absolutely no understanding of the fact that Nokia was holding Finnish economy high and now when Nokia is no longer making mobile phones, Finnish economy is doing much worse and they cannot require so high wages anymore.
In Finland the worker unions are way too strong, they have some rights (or actually wrongs) worker unions in other countries do not have:
1) The worker unions also decide how much is paid to employers that are not members of the union.
2) You get tax rebates for belonging to worker union.
3) In order to get better unemployment benefits you HAVE to belong to some unemployment fund, even though only about 1% of the unemployment compensation money comes from the unemployment fund, 99% comes directly from the goverment. Most of these unemployment funds are ran by the worker unions. (fortunately there is also one private on, "YTK", "common unemployment fund", but many people do not know it exists)
While I don't really think that universal basic income will be a solution for all the problems, nor think it wouldn't have some very detrimental side effects, the opinion of a trade union economist will quite obviously be incredibly biased towards painting it in an extremely bad light. People living on universal basic income won't be paying unions, even if they continue having a side-job or something.
Here's the thing though: lots of people are thinking of an universal basic income not because they WANT to be unemployed... it's more because of the risk of BEING FORCED not to be employed due to lack of jobs. I don't think AI will take all jobs anytime soon, but there's definitely a tendency for a huge shift that will take some sectors that employ a lot of people by surprise.
This is only a personal opinion, but honestly, I don't think that many people would outright stop working just because of it.
Ultimately, universal basic income won't be enough to attend most peoples' needs. And like it or not, people in absolute poverty that can't get a job are already living with the help of some sort of financial support that's either coming from public or private companies.
It might not be a bad idea to pick all the mess of social support programs, NGO work, among several other stuff, unify it into an universal basic income, and work from there upwards. It ultimately also achieves and attends the basics of human rights that governments in general should be providing to it's populace.
I might be wrong and things could turn to all hell, but I personally think we have to at least try. I'm no socialist myself, but if this could be one way to lessen the social gap, it's at least worth trying. The current reality for several countries is of complete abandonment to entire parts of the population, and there's a whole lot of public sectors that fails in providing the very basic needs for part of the population that is in most need. The human cost of all this might be way worse than most people imagine.
Will there be people using this universal income in the worst way possible? No doubts about that. Not only they won't be using that for their basic needs, it could be just spent on booze, drugs and whatnot. Could people take that as a way to just laze around and not work on anything for the rest of their lives? I guess so, though I think most people don't realize how much they depend on work to keep their sanity in check.
But it's as naive to think universal basic income will be all bad without benefits, just as it is thinking it'll be the perfect solution for all the problems.
A perfect example of basic income working is the longshoremen's unions in the US. Before containerized freight and automated cargo terminals, thousands of men would stand on the stones every morning and work a back-breaking job hauling loose cargo off ships with hooks. After containerization, instantly, there was no more work for the vast majority of these people. Since most of them were completely unskilled, and not capable of retraining into any other job that paid the same or better, they could have been in danger of seing the same fate we assign to the unemployed today -- eventual destitution. However, the longshoremen's unions implemented what amounts to a tax on cargo handled through these automated terminals that goes towards paying "retired" longshoremen a basic income. This is one example, and let's just say the union has a lot of muscle behind it that helped this get passed, but it does show a way to help the unemployable -- and make no mistake, that's going to be 90+% of us sometime before I'm dead (in the next 50 years or so.)
I guess my problem with people who argue against a basic income is that they don't have a better alternative in mind. Sometime in the near future, the vast majority of low level service jobs will be automated. At the same time, the use of intelligent systems will come and cannibalize the top end of the spectrum too. Think about doctors for a second -- they're smart enough to have a regulated profession and should be fine because of that. But what if they didn't? Medical education is basically academic hazing, from the MCAT to the preclinical firehose to 100 hour weeks as an intern. Med schools select for people with photographic memories and perfect grades because that's basically the only way to survive the training as it is today. Well, thanks to Google we don't need photographic memories anymore, so the only skill left will be synthesis of all the stored knowledge. This is why IBM basically sold off their entire business and are building Watson and other AI-type systems. Soon as these algorithms get good enough, most work that requires intuition is toast. Hospitals won't have to pay doctors when they can feed test results and live observations of patients into a machine and get a diagnosis.
I think basic income is the only reasonable transition vehicle to move the world away from traditional employment. Imagine telling everyone who's about to retire that people entering the workforce now won't have to save. Or, tell people who define themselves by their work that they've all been made redundant at the same time. Or, try to divide up the accumulated property among people when money stops being critical -- who determines where the renters go, or who gets to keep the houses they own? All of these are too much stress for the economy to bear all at once and will lead to a mess. Phase in a low-employment world over time with controls, and it makes the shift easier.
No one is arguing that automation isn't the route to increased standard of living. The question is how to get that increased standard to all takers. Overall productivity has increased, but not everyone has experienced this increased productivity. Overall compensation may have increased but for many, compensation has decreased.
Global warming is another example of bad analysis of statistics. From my experience summer hasn't been all that much warmer, but we have been having mild winters and the less observant among us saw a small amount of exceptionally harsh weather as contradicting global warming.
Any ability to means test https://en.wikipedia.org/wiki/... as with existing support plans is lost.
Has anyone done the math on giving everyone a payment in most nations with a limited areas of tax collection?
The very wealthy and multinationals only pay very limited tax in their own nations as they can afford the best tax advice.
Can the amount of tax payers in the middle class support their own UBI payments and cover the rest of a nation?
Would the amount saved on bureaucrats cover giving everyone a % of a national wage?
Would tax collected on the unemployed, underemployed and unemployable around a nation help cover the UBI?
With a slight jump in tax a UBI would fall behind as a usable payment to cover rent, food, transport for people on traditional gov support.
What would go in the USA? Social Security, food stamps, housing subsidies? The loss of Medicare, Medicaid?
No minimum wage?
That UBI would have to be indexed to a lot of real prices so it would allow people to survive on the UBI without layers of extra payments.
Domestic spying is now "Benign Information Gathering"
Asking a question is a poor way to make a point. And your question was wouldn't they have no reason to exist, not wouldn't they have no way to provide for their existence or some such.
Business folk must love UBI, because they can now get people for much lower wages, realizing that the part of the income is government subsidized.
Alright then, what was it you were attempting to cast doubt on?
As example of the general kind of thing I'm asking for, early in his first term Obama said something like "if unemployment isn't below 5% by 2012, you shouldn't vote for ... well you should think real hard about who to vote for."
It was fairly obvious he has started to say "if unemployment isn't below 5% by 2012, you shouldn't vote for me for re-election", then decided halfway through the sentence to change his words slightly. Anyway, he gave a clear, objective number by which to judge his performance. Many Republicans would probably have agreed that 5% unemployment was one reasonable, somewhat fair, standard to judge his economic policies by. Can anyone come up with a similarly fair and objective measure by which we will be able to judge the results of these UBI experiments, a pass/fail mark both sides might agree on?
* I don't remember the exact number Obama said - 4%, 5%, or 6%. The point is, he did specify a number by which his policies could later be judged.
The advantages include removal of the huge amount of bureaucracy, management costs, corruption, and fraud.
Which also means that with UBI, a lot more money will be spend on people that don't really need it, and didn't qualify for subsidies or welfare programs in the old system.
It's what you do that where you end up in the statistics depends upon. As for slaves, I watch people play Super Mario Maker for entertainment, so one could argue they are my slaves in this bargain, but they seem to be entertaining themselves doing it. Things are not as simple as you suggest. I am depressed though and have other medical issues, so the doctors are my slaves, I guess? On being depressed, once I get that addressed I will be more productive on my GitHub repositories. If anyone makes use of them, does that make me their slave?
How other could they see "it may encourage some people to work less" as a problem, when that is precisely the intent? The problem tackled by an UBI is primarily the scarcity of work, nothing else.
Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
The rest of the world bears no resemblance to the US - particularly not Europe, where the French Revolution has left clear evidence of what happens if you leave most of the population in abject poverty, and then publicly say "I'm all right, Jack".
Trump and his mates may tell you you can avoid problems by telling the general public they are worthless scum, but the evidence is against this being the case.
Sent from my ASR33 using ASCII
I should add that UBI also looks very good to people who evade tax completely but have an income. Take a close look at some of the people pushing it for examples. Other suckers like us are expected to get taxed out the backside to add to their income.
Welfare should be something to keep people alive if they don't have enough income not some "every child gets a prize" bullshit.
Increasing the number of people on welfare is going to reduce the amount of bureaucracy? Seriously?
It's an experiment. Let experiments run.
Table-ized A.I.
I don't have an all-seeing eye like you apparently do so what are the effects and how destructive are they?
How does a tiny random sampled "experiment" could tell anything at all about what would happen when a majority, leave alone whole population will start to receive free money? These are completely different dynamics. This sample group has no impact on the economy at all, while there will be inflationary impact when majority kicks in. Hipster's statistics-based "science". They even call it "experiment".
The point of UBI isn't that people who work and people who don't work will be living equal life-styles. In fact it is quite the opposite. The people only collecting UBI will have access to a basic set of resources of which they can prioritize their spending on. However, there money will still be competing with the money of people earning a living plus UBI! So moving into a big apartment in a trendy neighborhood will be impossible due to other people who have good jobs wanting to live there. As a matter of fact if you live only on UBI you will probably only be able to do so in the less desirable neighborhoods or cities.
I believe that UBI is an idea worth trying. Due to many issues with means tested welfare. Means tested welfare is very expensive to administrate and often fraught with fraud while people who in needed or who deserve to better taken care of do not take advantage of what is available to them. For a variety of Socio-economic reasons. It also can create "ladders" that are very difficult to climb out of. For example, a low income person may receive benefits valuing around $30,000 dollars a year however those benefits are only available if they earn less then $15,000 which means getting an entry level job would actually be a step down in living standard. However, if you continue to receive your UBI getting an entry level job will give you money that you can use to increase your Socio-Econmic position. The question isn't will people work more or less but at what level of UBI are people encouraged enough to work that basic products and services will be affordable which will change as products require less and less human labor. For example, if the UBI is too high you will grocery prices will sky rocket due to very high prices stores and farmers will have to pay for basic labor. However, this in theory becomes may become more or less self balancing with UBI representing a basic level of consumption that society is able to afford. I believe that UBI should be tied to a consumption based tax like VAT. So that if economic output declines so should UBI in order to increase economic output.
Let's wait for has/hasn't encourage... has/hasn't fall.
That's what experiments are for, aren't they?
Such affirmations when the experiment has just begun, instead of waiting to the end show two facts:
a) They want that the experiment fails
b) They suspect that the experiment will work
That's all we need, more bands like we need a hole in the head.
The Economist (Feb 4-10, p. 8) had an article on UBI (universal basic income) in India. According to it, India's current welfare schemes "soak up 5% of GDP", while a UBI would cost 6-7% of GDP. So I don't see that a scheme costing "5% of Finland's entire gross domestic product" is "impossibly expensive".
The arguments for UBI are a bit different in India than in Europe: people are more concerned about welfare expenditure being lost through corruption than with robots taking all the jobs.
There are too many fundamental errors in Finland's UBI experiment to summarize in a comment.
Starting from the sample of 2000 individuals being perhaps statistically significant enough, except for that reality doesn't scale well.
If the idea is experiment how unemployed people are willing to get part-time jobs when not being withdrawn of benefits, one has to take account the ratio of unemployment vs. number of open jobs. In Finland that's about 10:1. Jobs don't magically arise for the next 298000 or so, especially when truly universal UBI would create a deficit of 5 to 15 billion (1e9) will ruin the economic power of households and enterprises to create the jobs.
Of course one of the (un)spoken premises in UBI has been, that the "workforce" collectively pays / redistributes the payroll equally among the workers and non-workers -- companies don't have to participate. That's perhaps why UBI has support over the whole spectrum of Finnish leftwing parties (the rightwing parties favour government managed economy that concentrates on the profit-security of companies).
Most fundamental question, however, is what is the nature of rights. Is there a right for income, or a right for a job, that others are forced to support, or should the concept of rights be separated from the concept of entitlement or privilege. An universal privilege is a contradiction of terms.
An honest conclusion is that UBI would help getting an income without bureaucracy or shame, but it's ability to create jobs equates to the ability of any demand to generate supply -- [see 'It's raining men' by Weather Report' -- demand for a good husband doesn't create one, and the same principle holds for economy as well.]
I'm just concerned that in a world with UBI, people will produce more children. If that'd be the case; in addition to the additional strain on our beloved planet, I believe that the income/UBI-cost ratio will go out of hand after a few generations.
This is obviously not based on facts or any statistics and I truly hope that my beliefs are wrong as I'd really like for UBI (or a similar system) to work towards making the world a better place.
Exactly! It is a test, and we need to wait and see what the data say. Another thing that is worth testing (and I think that is probably part of a scheme that involves a basic income), is whether a scheme where you provide social security without spending much effort on ensuring that nobody cheats, is actually more or less expensive than one where you go to great lenghts to stop cheating and abuses. I have some personal experience with the two methods in a limited way: One of my children has diabetes. In UK, you go to your doctor, he says 'You don't need to pay for medicine' and you immediately start getting your medicine without paying. There are no checks, but you may get punished severely if you get caught. In Denmark, on the other hand, you have to first go through intense scrutiny by overburdened, social workers, and the whole process can take months, literally. In the meantime, you simply have to fend for yourself. Apart from the injustice in treating seriously ill people this way, it also seems to me that the overheads of all the checking and decisions in councils and committees must add up to a higher cost than the losses from those who might cheat.
You could take some classes and learn to spell. K thx by
This is another example of redistribution profiteers’ natural defense of the value of their franchise
http://myubi.blogspot.com/2017/02/warning-redistribution-profiteers-rps.html
Very true.
In any case, regardless if UBI is enough to cover basic needs or not, it will have perverse effect on wages.
In order for a proper balance between capital and labor to be (re-)established, one should rather look at reducing work time progressively, until full employment is achieved. At this "optimum" point, people work as little as socially possible.
This most likely will result in salary increase, and therefore loss of competitivity as margins get smaller.
Therefore, these policies should be accompanied with (international) trade measures, to guarantee that all players play by the same rules.
It is also likely that such a measure would reduce inequalitites.
I am puzzled as to why this is not pushed forward much more by progressives all over the planet. Work time reduction should be #1 topic on the political agenda.
I, for one, would believe in the EU as a valid social economic construction when it imposes a 24 hours work week, decreasing by 1 hour every year until full employment is achieved.
A UBI is very simple to administrate and requires very little bureaucracy. Our current collection of welfare systems are not. The reduction in bureaucracy won't come from increasing the number of people on welfare, but by reducing the per-person administration overhead.
I have absolutely no idea how you managed to misunderstand that from the GP's post.
I currently live in Israel, and it's the same here. My salary has deductions for pension, health care and disability. I doubt Israel is unique on this side of the world. Where else could the money come from?
That the amount of work they'll do is anywhere near the amount of work they'd do if they didn't have BI.
"First they came for the slanderers and i said nothing."
Current bureaucracy serves a purpose of getting every welfare recipient close to what they need, depending on personal circumstances. Someone who's disabled may need a modified home and car for extra cost. Two people living together in the same house need less. If you have children, you need more. If the children go to college, you need even more. If the children can work, you need less. If you live in an expensive neighborhood, you need more. Getting rid of all the bureaucracy means reduced efficiency in allocating funds, which means you'll need to hand out more money to make sure everybody's getting enough.
People who are earning a lot will end up giving their UBI back in taxes, so in net terms we won't end up spending much money on them.
The big news here is that trade unions employ economists. I bet they make him wear a court jester's outfit when presenting his latest findings.
Finland has unemployment coverage, and quite good social support. You can live on those. The problem with unemployment coverage is that you can lose it very easily - basically if you have any income, you will lose it, no matter how small your income is. And this can go back in time; set up a web shop, try if you can build an income on something you sell, find out 6 months later that you can actually just about support yourself. Inform the officials that you no longer need the support, they find out how you did it and poof - you suddenly owe them every penny with interest for the previous 6 months you had your web shop. Even helping someone out with no salary can be counted as a reason to stop the payment.
The current system is full of traps like this; you can live, but if you get employed with too small salary or very small initial income, you lose big. Same goes for short term jobs. The basic income experiment tackles this built in problem - and is very likely a lot cheaper to run than the current "yes, I was unemployed on Monday as well, just like the previous 250 days" that is quite heavy on bureaucracy.
The results of this experiment do not transfer directly to other kinds of systems.
In the USA, they call those areas "ghettoes".
And it costs a bunch of money to handle all that.
I think a lot of your examples aren't really cases that would justify getting more or less money though. For example, living in an expensive neighborhood? The UBI is a universal basic income, it's supposed to cover basic needs. Not "I want to live in a big house in a posh neighborhood". If you want the extra money for that, then work.
Similarly, two people living together in the same house saves resources, and it's only appropriate that they can spend the saved money elsewhere (perhaps on the children that often accompany living together).
Wouldn't a universal income act quite strongly to make trade unions less necessary?
I'm not talking about people that earn a lot. If one UBI is enough to rent a house, then two (or more) people living together in the same house will get more than they need.
Perhaps one UBI should only be enough to rent an apartment, then.
Really? How is it taking advantage of people to locate your factory somewhere with a low cost of living and pay people a wage that gives them a great quality of life rather than locate it somewhere expensive and pay people even more yet still only give them a subsistence lifestyle?
I'm not seeing the contradiction there at all.
But then the "huge amount of bureaucracy, management costs, corruption, and fraud" will come back.
Similarly, two people living together in the same house saves resources, and it's only appropriate that they can spend the saved money elsewhere
You may consider it appropriate, but that's not how welfare programs work. If you don't have a job, but you're married to a spouse with a nice income, you don't get welfare benefits. So, getting rid of all the management and bureaucracies and giving everybody the same independent of circumstances means throwing away more money.
It's like folks who dismiss needle exchange programs to reduce communicable disease, without actually bothering to look at the numbers, and what the studies actually account for.
That's at least in part because of so-called needle exchanges that simply give away needles, like they do in scruz. You don't have to exchange! Then they complain about needles on the beaches.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
$600 is the average Eastern European salary. Not the minimum, the average. You can make a good living on that.
You are taking the comment out of the context of the story and of this thread for some reason then.
You can't handle the truth.
ref: 37 years old ZHC worker. i make a living, but have to deal with this regardless.
the actual clusterfuck lies in the amount of bureaucracy you have to swim through in order to keep your papers clear, so to speak. everyone and their mother acts like they know what's best for us, yet we - the regular joes of Finland have not seen a single reduction of bureaucracy over the years. i personally fear that we will not see one.. ever.
you know how bad it is? if you're on benefits, you actually have inform your landlord if you get employed. after a long term unemployment, having a job means that everything is settled retroactively. at worst, you're not having a single dime for 1,5 months. at best, it's a week's delay.
current scheme considers short term jobs as a crime of sort, and you have to endure a bureaucratic assrape every single time you accept a short gig that pays well, but is like one doubleshift.
nothing to do with money.
If I understand your post correctly, it can be summed up as "so the trade union says it will cost 5% of the GDP. But how much is the program it will replace costing now?". Which is exactly what I was wondering as well.
I don't think I misunderstand at all. I think you do not understand that checking far more recipients for fraud is going to be be harder than checking a few. I don't think you understand the implications of identity theft in this situation. Perhaps look up the bodies in barrels welfare fraud in Snowtown for one of the extremes to watch for.
If you're already earning a basic living wage, why would you take a miserable job for peanuts?
Some jobs will certainly exist with very low pay and some people will do them. But it's unclear how it will pan out.
Also, you seem to be unaware that the government is already subsidising those jobs, but in a way which is not good for the people in those jobs.
SJW n. One who posts facts.
It could have been the single most successful thing on day one and they still would have declared it a failure .
In all fairness, it could also be a colossal failure on day one, and the other side would declare it a success.
If you post as Anonymous Coward, don't expect a reply.
They shouldn't. Setting the payment at $1000 vs $1500 (or whatever) shouldn't change the administration overhead.
So this is a two-year pilot program that has been running for less than 1.5 months, and we have a bunch of whiners making a fuss because they "think" it is not right. Why don't they STFU already and wait for the pilot to finish? Or, if they are *that good* in economic predictions, pursue a career in investment banking.
That's why in many formulations, taxes are bumped up so those people's tax-ubi is equal to their tax without ubi. IOW, if you're far from the bottom income brackets there is no net change.
SJW n. One who posts facts.
Well, yes, the whole point of UBI is that everyone gets the money whether they need it or not. Unless you think that paying for complicated regulations, means-testing, enforcement etc is a better idea?
Besides, I find that most anti-UBI people are convinced that 90% of people on welfare don't need it, so if that's the case we're ALREADY paying people who don't really need it; how would UBI be worse? Unless you're one of those folks who love regulations for the sake of more regulations?
I'm not claiming that UBI will solve all problems, or even that the economics will work out, but declaring it unworkable without trying it seems weird. The small-scale experiments have worked well so far; let's scale the experiments up.
From your response to Gravis Zero:
Business people in general have to compete with other businesses.
True for small businesses and individuals engaging in economic activity where the market tends to be far larger than the entities participating in it. A serious problem arises when a marketplace experiences consolidation in one side of the buyer/seller populations: I claim that conditions (where a single entity or a small number of entities gain control of one side of the market) attracts people who absolutely take improper advantage of people.
Several examples in our current economy:
My wife and I have a rental house, which we think approximates a "dividend stock" requiring a lot of yard maintenance :-) but returning about 4-6% ROI depending on maintenance requirements in any given year.. The home rental market has not (yet) consolidated so badly that we get to compete with lots of other small-time owners in a market with lots of renters. It works well.
Then there's the energy market, the communication (ISP) market, the hospital system market in most cities, the health insurance market, manufacturing big ticket items, etc. Those large organizations are run by executives who know exactly how much market power they have, and they use it relentlessly.
If you're already earning a basic living wage, why would you take a miserable job for peanuts?
For the same reason a person currently on welfare would get a miserable job that only pays a bit more.
Here in Canada people can get stuck on welfare because taking job will reduce their benefits by more than the job pays. If you also add in the fact that it costs something to go to work (transportation, clothing, less time to shop), then these people will find it impossible to get back into the work force.
Since when is having money handed to you is a 'right'? It is an entitlement for some and an obligation for others. An entitlement for those who receive it and an obligation upon those who pay it. Having obligations imposed upon people by the collectivist system that uses entitlements to stay in power is the exact opposite of rights, it is oppression and slavery, oppression and slavery is quite unlike having rights.
You can't handle the truth.
This is NOT a report, it is a kind of prediction ...
by an economist
think about their track record
Of course a "Trade Union" would say this. A trade union is the opposite of a labor union, for example the US Chamber of Commerce. Guaranteed Universal income means people are less compelled to find as much labor opportunity which is a direct conflict of interest with a trade union.
We'll make great pets
The way the current system works taking that job won't necessarily mean losing all of the welfare benefits so it can actually improve quality of life a lot. And most people on welfare aren't the mythical welfare queen and will actually try pretty hard to get off welfare.
I can honestly see the wage thing going both ways, possibly even at the same time. For a crazy example say the basic income was crazy high, such that it could support my family in our middle class lifestyle without me having to work. You can be damned sure I'd stay home all day and pursue my leisure entertainment hobbies. At that point it would take a pretty significant salary offer to get me out of my house and being responsible for some work load. However I have coworkers right now that would probably still jump at the opportunity to keep working even for only a small salary because they have higher aspirations for what they want to achieve so far as lifestyle. If I was single and childless again I'd likely be happy to live out life as a couch potato if the BI was even as high as $18,000 a year.
Basically I would expect that we'd see pay scales become more extreme in their variation. Employers might have to offer a significantly higher proportional wage to bring in workers for work that people hate doing, whether it is low skill or not.
Whether or not I believe that UBI would actually improve society, I question whether the Finnish experiment would provide any useful information about whether or not such a system would work. I'm not sure how they intend to measure the results, but I don't think that the information acquired would do anything more than fuel the flames of controversy. To provide valid results, I think that the experiment would need to be larger scale to see what effect UBI actually has on societal attitudes towards work. It also needs to runover a longer time scale in order to see how much of a work ethic is passed on from generation to generation, and to see what effects UBI has on immigration (would a UBI project become untenable because of large-scale immigration from other areas, or would it flourish because of the increased dynamicism of the immigrants)? I think that a small-scale experiment like the one in Finland is completely pointless, as it would be next to impossible to extend the results to a country-wide scale, especially in areas with difficult-to-control immigration.
I don't know what price scales in Finland are like, but I know that in the places where I currently reside (sometimes Southern California, sometimes Minneapolis) that $1000 per month is only enough person sharing an apartment to live on if they don't have to pay health insurance and don't own a car (although in the US a car would be needed in any place where rent is low enough for someone to get by on just the UBI). There are a lot of people in the US who are currently living on that level of income (I suspect mostly due to lack of jobs and/or some sort of disability), but that is a pretty miserable existence. I don't think that the existence of UBI in the US would result in a better life for most - it would not make it any easier for the people currently living a hand-to-mouth existence to find jobs (the jobs are going away due to AI and other automation, and the remaining jobs require non-existent skills).
Hardly "force". If you want to live somewhere that's more expensive than your UBI can cover, then get a job for the extra money, or move in with some friends.
(Note that a big reason that people live in big cities is because that's where all the jobs are. With a UBI, living where all the jobs are becomes less critical, and you'd probably find quite a few people who'd be more than happy to move out to more rural areas. If that happens, it would lower the cost of living in cities.)
I don't think a UBI should be set high enough to cover, by itself, living alone in one of the most expensive cities in the US (but likewise, it shouldn't be set so low that the only place you can afford with it is in the middle of nowhere with eight housemates).
And yet doing so independent of circumstances is one of the key points of a UBI, for reasons which have been explained many times over by people who are much better at doing so than I.
Correlations is not causation.
It many instances, welfare pays more than the minimum wage. People on welfare literally have to work under the table if they want more money working than welfare can provide. With basic income, there is no disincentive to work and less incentive for people to stay idle and make negative contributions.
Second, some working people also make negative contributions - the common thread there is lack of education. Lack of education also correlates with welfare. Fixing the education system (which is a different problem) should address that more so than welfare.
In UBI, some or all of these costs go away.
You miss an important point: UBI enable people to work on projects that make no or little money, at least not enough to live without UBI's help. And such project can benefit the whole society. For instance, someone could work full time on writing free software.
Today, welfare pays more than the minimum wage in some states -- creating a disincentive to work is destructive. Set up a UBI, do away with minimum wage and create a rational market.
It's not as if that 'extra' money suddenly leaves the economy. Given the subsistence levels of cash we're talking about, it is pretty much guaranteed that all of it will be spent quickly.
This is a point that is often lost on a lot of people. People who have little money are fantastic at spending it. From an economics point of view they are the ideal consumers: if they happen to save money it is almost guaranteed to be for a specific larger purchase in the near future. Otherwise they are going to spend all their money locally (no fancy imported Russian caviar or trips to remote countries) and soon.
There have been and are projects in Africa that specifically just give money to poor families and it seems to be working very well. See for instance:
https://www.givedirectly.org/r...
Barring emotional arguments such as 'but Western poor people are different' the fear for giving poor people (marginally) too much money is simply unfounded.
The rest of the world bears no resemblance to the US - particularly not Europe
I am sorry to call you wrong: in most European countries (at least in France, since you cite it), social welfare is funded from employee gross salary. The contribution is mandatory and directly paid by the employer.
It strikes me that UBI will not provide enough income to afford to go fishing at good lakes not over-run with meth-heads, so people will still need to work.
1. Wealth is just a number. There is always a game to be played which allows some people to have more and others to have less. The first version of the game involves physical force - caveman vs. caveman. The next evolution of the game involves physical force and charisma - get cavemen to pay tribute to one person. The third evolution of the game involves a hierarchy of force and charisma - get the people at the bottom to provide food and items for the people at the top. The last evolution of the game involves skimming off credits and the physical force is enforced by a third party (institutionalized security). But the game is the same - lock up available opportunities (patents, regulations created by incumbents, etc.), force people to generate money for the incumbents and win.
2. Communism is a bad example because it is disempowering and not a meritocracy. We need a system that combines a livable safety net for children, the disabled and the elderly while simultaneously rewarding for value creation. Also, communism is often accompanied by a dictatorship, where the benefits of the system accrue to the top faster than democratic systems. Often times when people talk about the collapse of communal economic systems, when it is not the communal system that is breaking apart, but rather the dictatorship. Take Cuba, for example. I bet people would like to keep the cheap, high quality healthcare, and still have representative government.
When automation renders 50% or more of the workforce redundant, governments will have quite a situation on their hands: either give these people something to live with and stimulate the economy, or deal with the rioting of hungry, disenfranchised families.
OR: kill them. I guess that's the option they'll go for.
"Trump!!", the new Godwin.
It doesn't make sense to measure work like that. Currently work is measured by how much money someone will pay for it.
Considering that the issue is that due to automation, there's less work to be done, I fail to see the problem.
Opposition promotes policies which create that situation in order to undermine it and give them more standing in attacking it. If you can't win, sabotage. These are complex problems with multiple facets which must be adjusted after implementation as well as dynamically adjusted with changing times. Competent leaders could probably find the balance and over time find enough of a pattern to perfect the balancing process for others to learn but there are constant roadblocks as well as incompetence. Including the public who's culture has shifted away from being able to tackle complexity and continues to do so as reality becomes just another perception to manage.
Take the USA, with their "obamacare" which people hate but most people like the ACA which is the same thing by another name. The system is so broken only half measures which skirt out real issues are possible and then don't last because any flaws in those can not be patched. Progress is minimal and temporary at best; it's all perception management - like the corporations who hire PR firms and lawyers instead of recalls... even if the recall might be cost the same (got to keep up your image!) I would argue that a 70% improvement could be managed into being negligible to the majority of the voting public. In the USA, it's so bad I bed about 30% wouldn't acknowledge a 100% perfect solution. Given how half vote... that 30% can be an electoral majority. Remember people act more out of opposition than out of support.
Democracy Now! - uncensored, anti-establishment news
I have a question for you, not being snarky or mean:
Say you receive UBI, and it is sufficient for you to not have to go out and earn additional income. This is the circumstance that matches your "I wouldn't work again" idea best, I think, yes? In that case, what do you think you would do with your time, energy and income?
No answer is wrong here, or will result in a nasty from me (although I can't speak for others on that one, this is slashdot, after all.) I'm just curious. Sometimes it isn't "earning money" that is a benefit to society, either. There are lots of things people might do that would be beneficial in one way or another.
I've fallen off your lawn, and I can't get up.
It is illegal to be unemployed. The government provides unlimited make-work positions to anyone who needs one and pays at some flat rate. You're fired Tuesday, you show up at the work center on Wednesday morning at 8:00. Fail to do so and a warrant is issued for your arrest. After N strikes you are eligible for the death penalty.
Everybody works. Trump works. The severely mentally disabled work. Think public school, but every day until you die.
What the government makes, or lets, you do doesn't matter, provided you are creating goals and making progress toward them. Somebody wants to try their hand at making art, hey, go for it. Sell it, and keep whatever's left after deducting your wages. Simple.
People have to work, even if the work is bullshit. Otherwise, people who do work and people who don't will always hate each other and society will always inevitably collapse.
So do the facts that we have computers, rocket ships, radio, television, the Internet, nuclear weapons, robot vacuum cleaners, satellites, space telescopes, solar power, drones, artificial meat just coming online, yay), supertankers, aircraft, plastics, fracking, nuclear reactors, heart surgery, brain surgery, dialysis, antibiotics, cellphones, overnight delivery across thousands of miles, food and other necessities distributed in plenty to areas are otherwise unlivable... you get the idea.
Things do change, and they can change a lot. So I'm not buying the "history shows..." argument.
Automation is both being more widely implemented on a constant basis, and becoming more sophisticated every day. Unless you can explain how it is likely that there is a hard limit to that process, I'm going to remain pretty confident that the end game will not be "earn or starve." At some point, warm bodies won't be needed to produce things; that's pretty clearly on the way.
I've fallen off your lawn, and I can't get up.
A universal basic income would have to be at a subsistence level - so it is only relevant for young college students (no house, no kids) and those who are destitute. E.g., if an IT worker were out of work, a basic income would likely be too low to even make a dent in their expenses. If the basic income were at a higher (non-subsistence) level, then most people, if they actually did not have to work to live decently, would pursue activities that they enjoy but that have little economic value. It is an idyllic vision, but unfortunately is not practical - not unless we implement communist-like control of all infrastructure and manufacturing - but we saw how well that worked.
UBI is not 'free money for all'
Bullshit. I am generally in favor of a UBI, but this is exactly what it is.
Capitalism claims to benefit the most people overall than other systems which is a socialist argument!
Socialism is actually used to justify capitalism. The problem is that so much propagandizing has been done that people see it only in extreme examples; and unfortunately people don't explore things in depth regardless of it's importance.
Making people suffer, starve, and die because they refuse to work is foolish as well as inhumane. Those people will cause hardships and increase costs to society. While some people will be criminals anyway, everybody will become a criminal if you make life bad enough for them.
The REASON for UBI is that it is more adaptable to whatever comes in the future and it eliminates a huge about of overhead managing a that area of the welfare system. The political flaws and human societal flaws probably make implementing and managing a good welfare system for much time impossible. So, designing a system which avoids human and political weakness should be priority. UBI is such a system-- it's simplistic so even a voter can understand it and it's harder to propagandize against. The more overhead and corruption the better UBI does. It is not perfect but what is?
Most people I find against UBI should actually be for it. Instead of mindless government policies and systems to baby hopeless people; hand them an income and it's their own fault if they mess up. Every welfare system has a hard time balancing so that it does not become a TRAP which punishes those trying to get out of it.
Human flaws will always have the top protecting their ASSets feeling entitled as well and putting themselves above others. The middle class is always a hybrid of both the poor and the upper classes; afraid to rock the boat except when it may take away from their earned entitlements and often they will defend the rich because they may move upward someday. The better society does the bigger the middle class will be and in turn the more they will neglect proper management of the system if not accelerate it towards despotism (the inevitable death of all democracies.) Therefore, systems should be designed around the human flaws of a successful society.
Democracy Now! - uncensored, anti-establishment news
Ironically, the 1% richest of any country already have their basic income for sure and it seems to work out fine for them. Maybe some of them work less (Richard Branson?), but I've never heard some billionaire call out his fellow billionaires that they are just lazy and don't contribute enough to society, and most of them seem to work no less than anyone else.
Oh wait, its not over yet and this is about some random guy shooting out his opinion.
You seem to have a different subtext of the word reason then.
Because the alternative involves you having less to go around for you. You can insist that you don't want to pay for things that have no obvious benefit to you directly but that results in you having less things that do benefit you directly.
The two of you seem to have an odd definition of what an apartment and a house is. The main criteria of an apartment is that it is part of an apartment building and can be larger than a given house.
The automation of farming was a much bigger impact to the labor market than everything else you listed. I know it's hard for you to believe because nobody has been tweeting about.
At some point, somebody very much like you said, "pretty soon warm bodies won't be needed to produce food". And they were right, but we still found plenty of jobs in manufacturing and the service industry--leading to people working fewer hours at a higher quality of life. Now you are saying "pretty soon warm bodies won't be needed to produce things"--and you're right, but warm bodies will get redistributed into other jobs, where they will work fewer hours at a higher quality of life. Many of those jobs probably sound ridiculous right now (like "life coach"), just like many of today's jobs would sound ridiculous to somebody from the agricultural economy of 1890.
There is a pretty serious problem of finding unskilled labor jobs, and managing the transition for those displaced by automation. The answer for the former almost certainly involves subsidized training/education. We don't have an answer for the latter (at least not for the bulk of people who are unwilling or unable to retrain for a different career).
How can someone object to that at such an early stage? o.O
No. They were not saying anything even remotely similar to what I am saying. Your imagination has failed you.
This isn't automation of one thing, or a few things, that is coming down the pike. This will be automation of everything.
You watch. This will do to our "earning" economy what innoculation did to polio.
I've fallen off your lawn, and I can't get up.
Don't the loan sharks simply swoop, wait until either someone gets desperate and then accepts their UBI for the remainder of their days in return for a lump sum.
Nullius in verba
A solution has to be found as the middle class and poor are further reduced in an age of ai cognition and robotic automation. This is an attempt to correct the inbalance that the coming decades will produce. If we continue with the system we have in place currently we will have no true middle class with any purchasing power which would lead to a breakdown of our society. Automation is about to start decimating the workforce over the next two decades. Automated driving is just the start and even this rather simplistic ai use will have massive effects on the workforce
I would be happy to post the actual solution to this problem but why bother? I get a basic income whether I give you the answer or not. Pound sand.
Just for openers, the city of Rome once it got established in the business of conquering her neighbors and extracting tribute.
The keywords are "bread and circuses".
Citizens were entitled to their regular allotments of grain, etc.
It didn't work that well . . .
hawk
That depends *entirely* on the price elastic of demand--the decrease can be either less *or* more than 1%. And in the (bizarre and hypothetical) case of the "Giffen good", demand could actually *increase* (but no-one has ever shown an example of such a good.)
hawk, now taking his economist hat back off
Norway has a population of 5.2 million people, or .1% of the population of the US. The Government is much smaller than larger countries which reduces the amount of bureaucratic layers that can be corrupted. While I would agree that the US Government is much larger than it should be, it's also larger by necessity due to population and landmass differences. In other words, what you can do in Norway does not translate to what you can do in any other Government larger or smaller.
The majority of the corruption in the US does not come because individual people are dishonest, it comes because politicians and bureaucrats are dishonest. The people in Government allow the system to be gamed because they benefit from the arrangement. People on Welfare of all types are dependent on the Government for sustenance, and will continue to vote for people who give them stuff. Sadly this is not really a parasite and host situation, it's two parasites with the host being everyone else in society. As an easy example, we should be able to simplify our taxes to a few lines. Look at the reaction when people say "you can't take away _my_ individual tax credit" when ever it has been tried. IRS agents and politicians are happy, lawyers are happy, the people who complain feel like they get something back from the system, and a very large number of people see it for what it is. Government bloat which we could do without.
The Welfare system has in turn created a different problem, which is that countless people living on the system no longer have opportunity to get off the system. Factories, Shops, and stores all closed up from lack of employees. Given the early choice of "welfare or work" large numbers of people went to welfare so those places had to close . No workers, no fluid cash in that area, no way to run a business. Now that the money is drying up we have major problems in densely populated areas because people can't work. Making things worse, we have no money to spend on Welfare (US Debt is 20Trillion cash and 220Trillion in entitlements).
I'm also not sure Finland has done the same thing with money set aside for pensions like the US has. US Social Security is an empty vault full of IOUs for the general fund instead of being saved and interest compounded for the people who put money into the system as it was sold to the American people.
At any rate, you can't say that Finland should be the model for the world because Finland has considerable problems even though they are a very small country. In some ways better than the US, but I know and work with people from Finland who moved to the US because Finland has high unemployment and little chance for economic mobility. A 60% income tax rate ensures that fact.
-The wise argue that there are few absolutes, the fool argues that there are no probabilities.
It's only a sample of one but basic income has enabled her to become an alcoholic. Needless to say, this result will not be recorded.
She also doesn't live in Finland, but of course doesn't tell the authorities that.
Well, typically the part after "locate your factory somewhere with a low cost of living" is charge people in expensive places significantly greater prices than it cost to produce your factory and profit greatly off of the "cost of living" arbitrage. There's also usually the whole lack of worker and environmental protection situation in these low cost of living places, so your profiting comes at the direct or indirect cost of human life.
But hey, you'll get yours... so what's a little sophistry to make it easy to sleep at night?
Oh yes I forgot - no crime or dishonesty in a libertarian world.
You would of course be correct given a perfect society full of perfect people.
Since UBI would disproportionately reward tax evasion and identity theft it's going to cost a bit to run it in less than a perfect world unless it's run as nothing but a rort for the 1% to keep on hammering the rest of the income earners (which IMHO is why this idea comes from the "right" in the first place).
Other than the Trade Union Economist are called research 'Useless' by being 'Useless'.
Finland's Universal Basic Income research will very like reflect the Hierarchy of Needs like some commenters noted.
https://en.wikipedia.org/wiki/...
except it will have more in between ranks.
Basically if the UBI is high enough, a lot of people that found out their Physiological needs and maybe Safety needs are met will be looking for a higher need. This is the part where we get maybe 75% of the test population will be lazy and look forward to do lazy things, watch tv, gaming, entertainment, relationship, etc. 25% of the test population look for an even higher need with variety of goals with just maybe less than 10% will move forward to something better (higher pay, new researches, volunteer, etc).
In fact, teenagers and the retired will be a good reflection on the research result. They rarely think about food, water or shelter and watch what they do when they're free. Most do lazy things, very few go for a higher needs.
The only drawback is that when they are looking for lazy things, we will need a lot of entertainment contents (like what we see in today's world), otherwise some will be doing a lot of unexpected/ unwanted things. Before when everyone is focus on getting a job, we have focus on sustaining and everything around money. With UBI, everyone will get bored. We will need to focus more on entertainment to get their boredom away. (are we in a matrix?)
Overall UBI will resolve only a part of the issue, while we will need another solution for the other issue to constantly ease humans need and another solution if we want to promote more innovation.
There's always more work, there are more jobs now than ever before.
"First they came for the slanderers and i said nothing."
I'm willing to accept that there are alternate ways to measure work. How would you measure work?
"First they came for the slanderers and i said nothing."
Good point, but it should be a lot easier to verify someone's identity than to verify their identity and do means-testing for the zillions of separate welfare-related programs we have at the moment. (Not to mention that we're ploughing full speed ahead into a future where humans can't really compete for jobs at all, so the difference between "number of people without a job" and "number of people" is going to start getting smaller and smaller anyway.)
They won't need or want human slaves when they have cheaper and more efficient robot slaves. So they aren't afraid of losing leverage. They'll have ALL the leverage. Is it even called leverage when you are powerful enough to move a mountain without a lever?
I'm going to need to see some evidence for that. Employment participation is down and pay is stagnant. Those suggest the opposite. If demand was really outstripping supply, wouldn't cost (pay) be rising faster than inflation?
Here you go. We recently outgrew the dip caused by the Bush recession.
"First they came for the slanderers and i said nothing."
I think you do not understand that checking far more recipients for fraud is going to be be harder than checking a few.
A UBI would be payable at the same rate to all eligible persons. Eligibility should be as simplistic as possible so that data matching can be accomplished:
* US citizen
* alive
* reached a certain age
Your government already has this information scattered across numerous data sources.
Now, overlay the population of the U.S. (count H1-B). Further, switch from the binary of employed or not to inflation adjusted pay. According to those stats, if 1000 highly skilled engineers get laid off and are forced to take 10 hour a week jobs at McDs, there is no change in employment. If a high school kid also gets one of those jobs, things are looking up according to them.
Perhaps by surveys that ask people how happy they are with it.
Further, switch from the binary of employed or not to inflation adjusted pay.
That's a bad statistic, you'd be better looking at 'total compensation per hour.'
"First they came for the slanderers and i said nothing."
In the article, they even say that no amount of evidence as to the outcome can sway their opinion, as they've always been against the idea. Anyone who takes such a closed-minded position cannot be trusted as a commentator. Trade Unions actually have a vested interest in keeping worker's desperate, as that is what drives membership in Trade Unions.
People keep bring up comments like "I wouldn't work". That's not what I'm worried about. I live in the South. Here, if you gave people a UBI, they would just farm in their backyards and smoke meth...which is what they already do, but I digress. I would love to be able to subsistence farm, eat everything I grow and still collect a UBI to pay my mortgage. What is supposed to inspire me to grow more than I need and sell it? Selling sounds like a pain. I'll work (for myself), but what makes me actually participate in the larger economy? Would you tell people they can't just grow their own wheat, brew their own beer and consume it all while collecting UBI?
The "LEFT" wants control and obedience, nothing less.
Dennis Morrisseau
US Army Officer [Vietnam era] ANTI-WAR
--FOR TRUMP--
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FIRECONGRESS.org
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802 645 9727
Since UBI rewards tax evaders that means testing step can't be avoided entirely either - unless it's all done as a trick to take from the middle and reward the wealthy, which I think is what some UBI proponents want.
Without something like means-testing to discourage tax evasion and punish outright illegal tax avoidance UBI would collapse as a diminishing number of taxpayers not only have to fund the bottom end of town but the top end of town as well.
Google identity theft and tax evasion to get some idea of what of was referring to.
Expecting a small pool of taxpayers to fund payments to everyone (including wastefully to themselves) is the core problem with UBI, but it's a greed driven idea from people who are already well off but want a "prize" from others while paying less tax than the "prize".
IMHO it's a sign of both amoral greed and being so out of touch that welfare is seen as a "prize" instead of something that stops people starving on the streets of your community.
The problem with basic income is that humans are for some reason silly about how they treat something they've earned vs something they've been given.
The labor group says the results of the two-year pilot program will fail to sway its opposition to a welfare-policy idea that's gaining traction among those looking for an alternative in the post-industrial age.
It's great to see that at least they went in with an open mind.
They would hope that in later years, when only 1% of the population offer any suitable skillset over our robotic overlords, whoever decides policy (human, fuzzy logic, random.random) would take all variables into account when dealing with attempting to increase/maintain the standard of life.
We disagree vehemently on a number of subjects; you're on my foes list for a number of good reasons. However, I feel that makes it the more incumbent on me to give you credit where it is due, so I'd just like to say that I often find your comments to be valuable and insightful. I freely admit that I do not like you, but I do respect you, and Slashdot would be a worse place without you.
Those who advocate genocide deserve every protection afforded by law, and none afforded by common human decency.
I'm not sure where you are getting "half again more people unemployed"--unless you are doing something really silly like comparing absolute numbers of people instead of rates.
> It fell a bit under Bush, and even more under Obama.
If you're talking about labor participation as measured by (1 - U6), then this is where you parted from reality. That number went from 92.8% when Clinton left office to the [much worse] 83.5% when George W Bush left office, and then *recovered* under Obama to the current 90.8%. It did not "fall *a bit*" under W and then "a bit more" under Obama.
The U6 data reflects macro-economic trends, the difference between good & bad Presidents, and boom/bust cycles (also emblematic of poor economic policy)--but there's very little trend here to extract any signal at all about the effect of automation on employment.
Look at voting trends in urban areas which vote almost 99% democratic over the last 50 years. Your claim for citation is delusional at best, dishonest at worst.
-The wise argue that there are few absolutes, the fool argues that there are no probabilities.
It's "universal" so by definition receiving it doesn't depend on how much money you earn or how much tax you pay (although there's probably a "for working age adults" proviso in there...). Stopping tax evasion is orthogonal to that.
No, it's not done as a trick to take from the middle and reward the wealthy. It's done as a trick to make sure that everybody can feed, clothe and house themselves. I personally don't think that's a bad thing to do.
"The trade union argues this UBI program would cost 5% of Finland's entire gross domestic product, making it "impossibly expensive."
So what is the alternative (the current welfare system) costing? Including all the administrative overhead?