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by playworker 2147 days ago
> In the end, it will lead to a grossly impoverished class of UBI recipients who will work 6 days a week for $3.25 an hour to supplement their meagre UBI.

I don't know how to break this to you, but surely you know there is already a grossly impoverished group of people working 6 days a week for $3.25 an hour without UBI.

If you add the UBI to their income they'll be hugely better off and they might even be able to choose between working those 6 days or staying at home and looking after their children, or caring for an elderly relative without the risk of being made homeless, or being unable to afford food for their family.

2 comments

> If you add the UBI to their income they'll be hugely better off and they might even be able to choose

Maybe, maybe not.

For clarity, I am a fan of UBI. But I'd like to run through a hypothesis about an adverse effect.

If you add the UBI and costs go up accordingly, the real, marginal benefit they can obtain by working for $3.25 an hour will actually decrease.

This means someone who is in circumstances where they can currently earn a meagre income to tip the balance to being able to make ends meet in that circumstance, will find their ability to work the same amount in a UBI world will not tip the balance to being able to make ends meet.

In other words they will be pushed to change circumstance, towards more work and/or lower cost. E.g. move somewhere cheaper, work more hours.

This does not sound like a net benefit for the already impoverished. It sounds like a trap, because low-wage working will provide less marginal benefit to change what people can afford when they are stuck.

I can't see your logic.

If someone is making ends meet by working at your (illegally low) wage, then having that wage _plus_ UBI means that they are UBI rate / existing wage times better off.

The wage's percentage of total income dropping is a red herring.

No one will be pushed to work more when they have _more_ resources at hand.

I think you haven't taken into account the adjustment to prices that happens, eventually, as the market responds to everyone being on UBI.

That's why I wrote "real", as in adjusted for inflation.

You have to understand that a sufficiently high UBI is very expensive. It either costs trillions of dollars or will be so low that poor people may be worse off than now due to lack of other welfare. Realistically affordable UBIs would amount to less that what jobless people get on social welfare, e.g. around 200-300 EUR in my country. I've seen the figures, and those were the ones of proponents of UBI. Do your own calculations and you will see what I mean.

If you want to help poor people, start with radically capping and reducing rents per m^2 everywhere. And by "radically" I mean radically, not just halving them. That's one of the biggest problems in almost every country and it will get worse and worse if current trends continue.

Expensive is okay, we're talking about eradicating poverty, as first world nations we should be judged on how well we look after the most vulnerable in society, not on how wealthy the 1% can get.

US population is what, 300 million, ~75% of that are adults, multiplied by something like $35,000 is what, 8 trillion? The top 1% have a wealth of 35 trillion, US GDP is around 24 trillion - is it acceptable to spend 1/3rd of your GDP on eradicating poverty and creating a more equal society?