|
The thing I don't really see accounted for in these experiments is that UBI is not really "universal". It's a group, or a town who or are not isolated from the outside economy, and the participants are usually aware/suspect that this bonus income probably won't last forever, so they know they need to keep working to maintain their careers etc. I'm not sure there's any way to account for it unfortunately, it is such a compelling idea though I think we kind of all want it to be real. |
It reminds me of the EU CO2 cap and trade system. In theory it would be a highly effective tool. In practice lots of sectors are excluded, a lot of free CO2 certificates are given away and many to the biggest polluters because they may become uneconomical, which is the entire point of the system in the first place. Basically, the system gets distorted so that the status quo remains. This doesn't mean that the system is not doing something but my point is that you'll have to tone down your expectations.
If we ever see a widespread UBI it will probably be means tested and with a limited duration which is exactly what this experiment is doing. It will probably be more effective and less costly but it won't bring wonders. It'll just be an incremental update to the conventional welfare system many countries have.