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by scarmig 2980 days ago
> will unemployed people stop looking for a job if they receive free money?

That's not quite the question. The question is, will unemployed people look less for a job if they're guaranteed free money even once they get a job, compared to the status quo where they are guaranteed free money (for awhile) that stops once they get a job.

There's also a follow-up question, that is something like "Will people on permanent disability start getting jobs if you stop punishing them by permanently taking away disability payments if they get a job?"

2 comments

There are also other questions like “will people become more mobile, seeking new jobs or quitting jobs they don’t like, if they have basic income.”

Also “will people be more likely to start their own enterprises if they have basic income?”

>free money (for awhile)

That destroys your argument.

In Finland, all unemployed are guaranteed “free money” even if they choose not to seek employment. The difference from UBI is that this final security net, so to speak, only guarantees a minimum level of income – any earned wages (or existing wealth) directly affect the welfare payments on this level.

edit: the whole system is more complicated than this, of course, but the point here is that this safety net is permanent – you can not lose it even if you are unemployed for a long time (recently, a tiny reduction of welfare payment was introduced for those who do not meet certain criteria for activity; however, you are in any case entitled to certain level of income, and government-paid rent, etc., in any case.)

Yeah, not really, since it's not even an argument but an empirical question.

Feeling like you can loudly assert things not in evidence is a sign of some pretty tall ideological blinders.

There is a big difference between "getting free money forever" and "getting free money for some time" (1-2 years or so, at least in my country). Especially, if you have a family you definitely not want to risk running out of welfare.
There is a difference, and you offer a hypothesis on how it would affect work incentives. And it'd be silly to reject that hypothesis out of hand.

But a hypothesis is just that: a hypothesis, not a fact. There's plenty of existing research on how changing unemployment benefits change work incentives (answer: not too much), but it's also true that longer time horizons might change that answer. That's why experimental tests are needed.