Universal Basic Income, In Perspective

[Draggingtree]

Hoover Institute

Universal Basic Income, In Perspective

by David R. Henderson

Thursday, June 13, 2019

Andrew Yang, one of the many politicians contending for the 2020 Democratic nomination for President, advocates a universal basic income (UBI).  Under his proposal, which he calls the “Freedom Dividend,” the U.S. government would pay $1,000 a month to every American adult. There are two major problems with a UBI. First, it would dramatically expand the size of the federal government and, thus, require more than a 70 percent increase in federal taxes. Second, it would dramatically reduce the incentive to work, not for people already on welfare but for millions and possibly tens of millions of people not currently on welfare.

Even some free-market economists, such as Duke University’s Michael Munger, argue for a UBI that would replace the current welfare state. But assuming unrealistically that the existing means-tested welfare state programs could be completely replaced, a UBI of $12,000 a year or even of $10,000 a year would require large increases in federal government spending and large increases in taxes.   

[Valin]

@Draggingtree

 

There is a theme in some science fiction stories. (see The Mercenary by Jerry Pournelle) where society is divided into two groups. Tax Payers & Citizens. Lets just say Life is not upwardly mobile for The Citizen Class....Think Cabrini Green on steroids nation wide.