[biomodel]

And this is why UBI was supported by right leaning economists like Milton Friedman. If we believe that people in wealthy societies should have a minimal standard of living including basic food, housing and health care then we can provide it through the market in the form of a basic income

It will avoid the perverse incentives that lead people to get costly health care in the ER (which is then covered by other patients) instead of having health insurance and receiving preventative care

It can prevent people from avoiding getting a higher income lest they start earning too much to qualify for the social programs they depend on

No UBI won't fix all problems - but it may very well pay for itself through better externalities

[manigandham]

Friedman proposed a negative income tax which is different, and arguably better, than a standard flat payment.

[balfirevic]

It's barely distinguishable from UBI for any practical purpose.

[manigandham]

Not really. It scales with income, motivates working, is more fair, and avoids a blanket handout which would just raise the prices of everything in response.

[balfirevic]

I think you are confused about how either UBI or negative income tax works. The most important difference is that negative income tax would do payouts once a year, and even that is not a hard requirement. Other differences are accounting differences and not practical differences in how much money people have available (as they can be made identical by tweaking the tax rates and tax brackets).

[manigandham]

Of course both programs will guarantee a certain income, that’s the point after all.

But UBI decreases motivation while also inflating the cost of goods and services so that they rise to meet the new money supply.

NIT avoids both problems by scaling with income. It provides motivation without paying every one. More fair, less cost, and better purchasing power.

[balfirevic]

You are, frankly, just making stuff up. UBI proposals are not necessarily (nor usually) funded by creating new money supply.