[jltsiren]

Unemployment benefits and other income-dependent benefits are a strong incentive against working, unless the job pays particularly well. It's common that the effective tax rate for low-paying jobs is 80-90%, if you count lost benefits in addition to taxes. Sometime the rate exceeds 100%. In order to get unemployed people back to work against their own interests, unemployment benefits often come with strict time limits, a lot of surveillance and bureaucracy, and a general loss of dignity.

The "basic" in UBI aims to solve that by changing benefits and taxes. Everyone from the homeless to the billionaires gets the same benefits, while income taxes will make sure that most people won't see any additional money. The differences are only seen by people with low incomes. While the benefits may be a little lower, taking a low-paying job makes much more sense, as your tax rate may be as low as 40%.

Many old-school unions oppose UBI because it makes low-paying jobs more viable. They consider it morally wrong. According to them, if you work full time, the employer should pay you enough that you don't need any government handouts for a dignified live.

[jay_kyburz]

Id love to understand how unemployment benefits discourage working more than a UBI. Either you need to work to survive or you don't.

I've read some comments here recently that suggests people feel like they have a right to a nice life after being born. As I get older I see humans more like any other animal born into an uncaring universe out in nature. You have to get out of that borrow, hunt and forage to survive. It's not the responsibility of every other human to have food delivered to your burrow.

[qqqwerty]

Look up welfare trap. Many benefit programs are implemented such that they go away the second you start working. This means if I am getting $X per week in welfare but I get an employment offer of $Y per week where Y<X, then I am incentivized to stay on welfare. Even if Y>X, it often makes sense to stay on welfare because you might have to start paying for child care, or buy a second car to get to work, etc...

> You have to get out of that borrow, hunt and forage to survive.

Modern society has put significant constraints on how I can pursue survival. I can't just go and fish in the ocean, because there are regulations on how and what I can catch. I can't just go and farm a little piece of land because almost all land is owned by someone or something. Of the many reasons I think UBI is a good idea, a major reason is that I consider it payment for the loss of "natural rights" that we give up in order to live in a modern society. I think fishing regulations are good thing, but they also curtail my ability to subsist, so I think UBI is a good compensation for that.

[jay_kyburz]

> This means if I am getting $X per week in welfare but I get an employment offer of $Y per week where Y<X, then I am incentivized to stay on welfare.

Yes, sure, but this applies to UBI as well. If Y is not worth my time actually doing the work, after you pay for that card and child care, would I bother? Is UBI a comfortable life, or is it bare minimum to live?

>a major reason is that I consider it payment for the loss of "natural rights" that we give up in order to live in a modern society.

I don't mind this argument, but lets remember that in order to assert your natural rights you need to actually work. If you were allowed to fish and hunt, you would have go out and do it. UBI suggests you can just do nothing and be handed a living.

I would much prefer we provide unemployment or disability to anybody who wants it because I want to live in a compassionate and caring society, but we don't have to call it a UBI, give it to everybody, and turn the world on its head.

Then I think we should also guarantee a job for anybody who wants one, with a significant step up in income. (And right now that job should be capturing carbon.)

[qqqwerty]

> Yes, sure, but this applies to UBI as well.

It does not. THE primary difference between UBI and unemployment is that UBI does not disappear once you are unemployed. So in my hypothetical scenario above, the person would be making Y+X. Assuming UBI is paid for via income taxes, and that those income taxes are applied progressively, at some point up the income ladder you will be paying more in taxes than you receive in UBI, but at the lower income scales it is all accretive making for a strong incentive to work.

> Then I think we should also guarantee a job for anybody who wants one, with a significant step up in income. (And right now that job should be capturing carbon.)

I think we should have a UBI and then combine that with eliminating the minimum wage. Maybe we limit that to just nonprofits, but the goal would be to make it easier to pay people to do work that is currently not incentivized in our current economy. For example, near me, I volunteer for beach cleanups and at the community garden. These groups are well funded, but they need to rely on volunteers because the minimum wage near me is over $17 and the operations are very labor intensive. If you have a UBI, the idea of paying people a few bucks an hour to clean the beach becomes much more palatable. Right now, we need to try to strong arm companies into paying livable wages, but there is only so much economic activity that is profitable at those levels. A UBI that provides very basic subsistence (we are talking squalor levels of assistance, FYI), combined with reducing barriers to employment would go a long way towards resolving some major ills in our current economy.

[jltsiren]

With UBI, the job effectively pays more, and the incentives to take it are stronger.

A hypothetical example with arbitrary numbers:

You get $20k/year in benefits. You are offered a job that pays $30k/year, but then you have to pay $5k in taxes and you lose the benefits. The job would effectively pay you $2.5/hour after taxes, which is not very attractive.

With UBI, you get to keep the benefits, but you pay a 40% tax for all earned income. Your after-tax income would be $38k/year, and your effective wage would be $9/hour after taxes. Still not very good but much better than the $2.5/hour.

[oneshtein]

Yes. Moreover, all prices will jump 3-100x, so UBI will be useless anyway: you must go to work or die in poverty. UBI is also known as "true socialism".

[qqqwerty]

If UBI is revenue neutral, whether by increasing taxes or cutting other programs or some combination of both, then it would not increase inflation. You should brush up on your macroeconomics.