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by jiggy2011
4613 days ago
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The problem is that not everybody's costs are the same.
A disabled person may have much higher living costs due to needing additional care and special equipment to help them, they also have less chance of gaining employment in order to increase that income. Also consider costs of living/housing etc. For example an unemployed programmer might be better off staying somewhere like SF where costs are higher because they are more likely to get a job there. The risk would be that you ended up with low cost of living slum areas where the unemployed would congregate , separate from the productive economy. |
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This would seem to be the case regardless of the type of government assistance provided. Suppose we provide enough that a disabled person can live a dignified, if spartan, life. Should we deny that same level of support to someone else, who may be more able to contribute to society, just because that person is not disabled?
> Also consider costs of living/housing etc. For example an unemployed programmer might be better off staying somewhere like SF where costs are higher because they are more likely to get a job there.
That's the reason why the cost of living/housing is higher there. Increasing government subsidies in areas with higher costs cause the costs to increase even more, because recipients of government assistance then have that money with which to pay, increasing demand without increasing supply and therefore raising prices. Meanwhile only the poorest of the poor remain in the lower subsidized areas because they can't afford to live in more desirable areas even with some government assistance, causing those areas to degrade even more. This is the same logic that leads to the mortgage interest tax credit which benefits mortgage lenders much more than homeowners (and screws over renters even more) -- you're subsidizing the sellers of housing and loans more than the buyers because you're increasing the demand rather than the supply. If you want to help the poor live in San Francisco, subsidize the construction of affordable new high density housing and mass transit there, so that the cost goes down rather than up.
> The risk would be that you ended up with low cost of living slum areas where the unemployed would congregate, separate from the productive economy.
That's what happens already. If anything a basic income can disrupt such behavior, because it allows people living in poorer areas to take better risks, and provides them an increased incentive to seek employment because taking a job doesn't result in the discontinuation of government benefits.