Author Topic: $1000/month Universal Basic Income - Andrew Yang  (Read 35936 times)

JLee

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #250 on: March 27, 2019, 06:37:26 PM »
My parents became multimillionaires by working their butts off (from scratch, and after learning a second language), the same way that I became a millionaire before 30 despite English not being my first language. I'm not white either, I'm olive, though I'll grant you that I'm tall. But then, if we list all our genetic/environmental advantages and disadvantages, we'd be here all day.

I would be curious what your education costs / barrier to entry was in Australia vs what it is in the US.  It's simply not feasible for many people to go to law school here.

Bloop Bloop

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #251 on: March 27, 2019, 07:30:07 PM »
I got a part-scholarship based on my marks, and the rest of my fees (as is usual in Australia) were deferred. There is no up-front cost here, and the only barrier to entry is that you have to do well academically in high school. Although tertiary education in the U.S. is much more expensive, legal salaries are also much higher, so it balances out as long as you are able to get a good graduate job. Also, the U.S. has a lot more scholarships for minorities/poor people than we do here.

Kyle Schuant

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #252 on: March 27, 2019, 09:33:12 PM »
There's nothing wrong with a lack of social mobility.
Don't say that too loudly. Social mobility is part of the promise of Western capitalism. The poor put up with being poor because they can, in theory, be rich someday. If that theory proves to be bollocks, then the poor may take it badly. Historically this gives us election upsets at the least, more commonly crime (drug dealers are starting their own business to meet local demand, after all), and in extremis leads to guerilla and civil war.

It is difficult for a member of the salaried classes, who benefits so much from the system as it is, to perceive at once how unfair the system actually is, and secondly how dangerous that is to the salaried classes in the long-term. But it is in the nature of elites to destroy themselves.

Bloop Bloop

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #253 on: March 28, 2019, 12:57:07 AM »
Social mobility is not a promise to all - it is an opportunity given to some, who are lucky or talented enough to grab it. What's important is that the opportunity exists, not that the promise is fulfilled for all. As long as the opportunity is seen to exist, there will be limited unrest.

Kyle Schuant

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #254 on: March 28, 2019, 05:24:12 AM »
And with free trade and the rise in cost of tertiary education, there is shrinking opportunity. Because the working class jobs don't exist and it's a lot more difficult than it used to be to go from a working (or rather, unemployed) class background to the professional salaried class.

Thus the rise in illicit drug use in those formerly working class areas.

Don't think of them as taxes, Mike, think of them as insurance, keeping your life in chambers and your home in Toorak or South Yarra cosy and secure.

Tyson

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #255 on: March 28, 2019, 09:17:16 AM »
And with free trade and the rise in cost of tertiary education, there is shrinking opportunity. Because the working class jobs don't exist and it's a lot more difficult than it used to be to go from a working (or rather, unemployed) class background to the professional salaried class.

Thus the rise in illicit drug use in those formerly working class areas.

Don't think of them as taxes, Mike, think of them as insurance, keeping your life in chambers and your home in Toorak or South Yarra cosy and secure.

Re: drugs, you can just legalize them and now there's all kinds of new businesses for the working class.  That might sound flippant, but it's true.  Here in Colorado since we've legalized recreational pot the number of pot shops is bigger than Starbucks or McDonalds.  No joke.  And it generates a lot of revenue for the state, which we funnel into things like better biking lanes on existing roads, development, etc... 

There's also an emerging class of businesses around catering to the wasteful lifestyles of the upper class.  I'm thinking particularly of things like "Doggy Day Care" businesses I see all over the place nowadays.  Well off people pay for this crap.

But, the jobs in the small/medium towns are drying up which is driving a large migration of people to the cities.  Those traditional blue collar jobs just aren't there anymore and IMO they won't be coming back. 

seattlecyclone

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #256 on: April 01, 2019, 03:30:55 PM »
I do think we need to start moving toward a UBI system. Automation is going to make more and more people unemployable as time goes on. Yes, in the past when jobs have been automated out of existence, more have sprung up to replace them. I think this time is a bit different. In the past there were always more repetitive tasks that needed to be done, that didn't require much training, and could be accomplished by people who have below-average intelligence. I'm not so sure that we have a bunch of untapped work available that fits this description. I posit that if we did, the labor participation rate among people with no college education would be much higher than it is now.

As our economy evolves, humans will increasingly be needed only for non-routine tasks, often those that require a great deal of education and creativity to accomplish well. Simply put, a lot of people aren't cut out for such work. Does that mean they should be living on the streets? I say no.

That said, I think moving immediately to a $1,000/month UBI would be too much of a shock to the system. Too much to add to the federal budget all at once, too many low-wage workers finding that they can immediately tell their employers to take the job and shove it, it's just a really big change. I'd phase it in gradually: $100/month to start, adding $100/month each year until we get to whatever a reasonable poverty line is at that time. At the same time I'd gradually phase out the other social welfare programs and the minimum wage. You wouldn't even need to necessarily cut people off of programs that they qualify for, but you'll find that when you give everyone an extra $1,200 of annual income there won't be quite so many people who qualify in the first place, and those who do qualify might get a smaller amount of assistance. When the UBI goes up to $2,400 the number of people qualifying goes down a bit more, and eventually you can just get rid of the program because nobody has a low enough income for it.

I've seen a few people up-thread make a calculation where you multiply the number of adults by $1,000/month and assume the deficit will increase by that much. That's overly simplistic. If you treat the UBI as taxable income (why wouldn't you?), some fraction of the UBI would go right back to the government in the form of taxation. Furthermore the effect of reduced benefit expenditures will also affect the UBI program's impact on the deficit. I agree that it would increase the deficit in absence of increasing tax rates, but it's not a dollar-for-dollar thing. Let's phase it in slowly and see what levers need to be adjusted to make the thing work.

taekvideo

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #257 on: April 07, 2019, 03:39:50 PM »
My parents became multimillionaires by working their butts off (from scratch, and after learning a second language), the same way that I became a millionaire before 30 despite English not being my first language. I'm not white either, I'm olive, though I'll grant you that I'm tall. But then, if we list all our genetic/environmental advantages and disadvantages, we'd be here all day.

I would be curious what your education costs / barrier to entry was in Australia vs what it is in the US.  It's simply not feasible for many people to go to law school here.

Law school isn't the safe bet it once was either. A lot of the routine work lawyers do is in the pipeline to be automated (some of it already has been). The next generation will be graduating with a mountain of debt and not nearly enough work to go around to pay for all those freshly minted degrees.
« Last Edit: April 07, 2019, 03:59:03 PM by taekvideo »

pecunia

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #258 on: April 07, 2019, 04:25:02 PM »
If there are no jobs out there due to automation, who will they sell the product to?

As technology expands in an exponential pattern, there are continually new tasks to be done not having existed before.  When I was a kid, the world was analog.  Look at all the jobs created by going digital.  There were computer departments that took care of the main frame, but no IT like there is today.  There were no web site designers.  Network engineers did something totally different (& were real engineers).  Many jobs are created with the problems of the technology.  Help desk people are necessary due to ever changing and obtuse interfaces.  Security people are being ever more needed as hackers do their thing.

As this stuff keeps spreading there are more and more niche areas of specialization.  In addition to this the old stuff never completely goes away.  Stones didn't disappear at the end of the stone age.

I heard it said many years ago that this iis the age of specialization.  That hasn't changed. 

Maybe, it is true now than in any time in history that if someone keeps their eyes and ears open looking for opportunity, they will find it and make their way in this world.

Find a need and fill it - Henry J. Kaiser

JLee

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #259 on: April 07, 2019, 04:30:05 PM »
If there are no jobs out there due to automation, who will they sell the product to?

As technology expands in an exponential pattern, there are continually new tasks to be done not having existed before.  When I was a kid, the world was analog.  Look at all the jobs created by going digital.  There were computer departments that took care of the main frame, but no IT like there is today.  There were no web site designers.  Network engineers did something totally different (& were real engineers).  Many jobs are created with the problems of the technology.  Help desk people are necessary due to ever changing and obtuse interfaces.  Security people are being ever more needed as hackers do their thing.

As this stuff keeps spreading there are more and more niche areas of specialization.  In addition to this the old stuff never completely goes away.  Stones didn't disappear at the end of the stone age.

I heard it said many years ago that this iis the age of specialization.  That hasn't changed. 

Maybe, it is true now than in any time in history that if someone keeps their eyes and ears open looking for opportunity, they will find it and make their way in this world.

Find a need and fill it - Henry J. Kaiser

Meanwhile, it takes fewer and fewer people to manage tech.  Many places are outsourcing to AWS/etc -- massive automated cloud instances dramatically reduces the need for on-site employees to manage stuff (and it does not take nearly the number of people to maintain a cloud infrastructure as it does a physical infrastructure).

By consuming more we can create more jobs, but we're destroying this planet.  Eventually the rampant consumption train is going to have to slow down, and then what?

Bloop Bloop

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #260 on: April 07, 2019, 05:02:30 PM »
I envision the rise of the gig economy - like Uber, Menulog and Airtasker. Right now very few of us have butlers, maids and concierges, but maybe in the future we will have. After all, just a few decades ago no one could fathom having a dedicated driver, at your door, within a few minutes' notice, for cheaper than a taxi fare! Even ten years ago that was a pipe dream. Now it is reality. Think of all the other services that could be provided, that now are seen as too niche or too expensive, but that will become reality in due time.

pecunia

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #261 on: April 07, 2019, 06:14:19 PM »

-SNIP -

By consuming more we can create more jobs, but we're destroying this planet.  Eventually the rampant consumption train is going to have to slow down, and then what?

Seems like an incredible market out there just waiting to restore the planet.  It'll be quite a job, won't it.  People will have to develop new technologies.  All those sinking cities will provide opportunity for people with construction savvy.  How can you lift the crust and reclaim lost land?  It will be exciting times.

People used to burn whale oil.  Then some tech savvy people of the time put their minds to work and developed coal gas for lighting and later kerosene.  This kerosene thing spun off into whole new industries providing the power for the chief prime movers of our day and the production of plastics.  They did things in a different way and it turned out good for a long time.  It created a lot of jobs for a lot of people.  Maybe, we can do things in a different way and stop destroying the planet.    I think there are ideas out there to be stumbled upon by today's version of Watt and Necomen.  Just think, Nukes can produce a lot of power, take little space, consume little resources and leave little waste.  Then, there are the ideas we haven't even thought of.

If the management of data takes less people, these smart people can find something better to do.  It will be just like the makers of buggy whips.  Their free minds may be the ones to find solutions to today's problems.

The train doesn't have to slow down just be shunted off to alternate tracks.

Too bad I'm a pessimist or I could feel good about all this progress about to be undertaken by mankind.

JLee

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #262 on: April 07, 2019, 09:02:39 PM »

-SNIP -

By consuming more we can create more jobs, but we're destroying this planet.  Eventually the rampant consumption train is going to have to slow down, and then what?

Seems like an incredible market out there just waiting to restore the planet.  It'll be quite a job, won't it.  People will have to develop new technologies.  All those sinking cities will provide opportunity for people with construction savvy.  How can you lift the crust and reclaim lost land?  It will be exciting times.

People used to burn whale oil.  Then some tech savvy people of the time put their minds to work and developed coal gas for lighting and later kerosene.  This kerosene thing spun off into whole new industries providing the power for the chief prime movers of our day and the production of plastics.  They did things in a different way and it turned out good for a long time.  It created a lot of jobs for a lot of people.  Maybe, we can do things in a different way and stop destroying the planet.    I think there are ideas out there to be stumbled upon by today's version of Watt and Necomen.  Just think, Nukes can produce a lot of power, take little space, consume little resources and leave little waste.  Then, there are the ideas we haven't even thought of.

If the management of data takes less people, these smart people can find something better to do.  It will be just like the makers of buggy whips.  Their free minds may be the ones to find solutions to today's problems.

The train doesn't have to slow down just be shunted off to alternate tracks.

Too bad I'm a pessimist or I could feel good about all this progress about to be undertaken by mankind.

Oh yes, back when people could afford an education! Those were the days indeed.

ender

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #263 on: April 07, 2019, 09:12:51 PM »
If the management of data takes less people, these smart people can find something better to do.  It will be just like the makers of buggy whips.  Their free minds may be the ones to find solutions to today's problems.

What will all the people working minimum wage jobs with no marketable skills do?

And please provide a realistic answer and not "learn to be engineers" or something similarly unrealistic that seems the common quip to such a question.

Bloop Bloop

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #264 on: April 07, 2019, 10:05:08 PM »
If the management of data takes less people, these smart people can find something better to do.  It will be just like the makers of buggy whips.  Their free minds may be the ones to find solutions to today's problems.

What will all the people working minimum wage jobs with no marketable skills do?

And please provide a realistic answer and not "learn to be engineers" or something similarly unrealistic that seems the common quip to such a question.

I've already provided some examples. Small-time odd jobs, butlering, similar service jobs, trash collection, environmental clean-up, greasing machinery, etc

middo

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #265 on: April 07, 2019, 10:38:39 PM »
If the management of data takes less people, these smart people can find something better to do.  It will be just like the makers of buggy whips.  Their free minds may be the ones to find solutions to today's problems.

What will all the people working minimum wage jobs with no marketable skills do?

And please provide a realistic answer and not "learn to be engineers" or something similarly unrealistic that seems the common quip to such a question.

I've already provided some examples. Small-time odd jobs, butlering, similar service jobs, trash collection, environmental clean-up, greasing machinery, etc

Of course!  Back to the servitude of the 19th century!  Didn't that work well in Russia.

Bloop Bloop

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #266 on: April 07, 2019, 11:23:47 PM »
Let's give it a go and see what happens first.

LennStar

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #267 on: April 08, 2019, 12:20:39 AM »
Let's give it a go and see what happens first.
No, thanks.
The examples of real life and literature are not really what I want.

What about we instead split the work? 20 hour work week!

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #268 on: April 08, 2019, 08:37:51 AM »
I agree with the optimists on this board, that frankly there will always be jobs. Because the opposite conclusion is so damn depressing: A good proportion of people have no means or ability to add value to society.

Given that jobs will exist, and given that society is providing value to people (through food, shelter, education, defense, etc., etc.), people should be encouraged to provide value to society rather than having their needs met by society for their entire lives (potentially). That's my opinion, at least.

Cool Friend

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #269 on: April 08, 2019, 09:09:51 AM »
I agree with the optimists on this board, that frankly there will always be jobs. Because the opposite conclusion is so damn depressing: A good proportion of people have no means or ability to add value to society.

For me, being depressed about a possible outcome isn't a good enough reason to believe it can't happen.  Jobs aren't matter/energy and won't necessarily always exist in the same quantity.  Jobs may not disappear entirely, but will the new jobs be created at a rate that replaces all or even most of the ones disappearing?  There's no guarantee that that will happen.  Even the jobs that MikeBT suggested have great potential to be automated. 

JLee

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #270 on: April 08, 2019, 09:43:30 AM »
I agree with the optimists on this board, that frankly there will always be jobs. Because the opposite conclusion is so damn depressing: A good proportion of people have no means or ability to add value to society.

Given that jobs will exist, and given that society is providing value to people (through food, shelter, education, defense, etc., etc.), people should be encouraged to provide value to society rather than having their needs met by society for their entire lives (potentially). That's my opinion, at least.

I would like to see more people able to follow their passion. Dance instructors, musicians, artists - they all provide value to society in different ways than feeding the economic engine.

maizefolk

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #271 on: April 08, 2019, 09:44:52 AM »
I agree with the optimists on this board, that frankly there will always be jobs. Because the opposite conclusion is so damn depressing: A good proportion of people have no means or ability to add value to society.

For me, being depressed about a possible outcome isn't a good enough reason to believe it can't happen.  Jobs aren't matter/energy and won't necessarily always exist in the same quantity.  Jobs may not disappear entirely, but will the new jobs be created at a rate that replaces all or even most of the ones disappearing?  There's no guarantee that that will happen.  Even the jobs that MikeBT suggested have great potential to be automated.

I agree with you. I'd also add that it's not even enough for job creation to keep up with job destruction and population growth, but in order to avoid major societal challenges in the next decade or two the newly created jobs have to be ones that the people whose jobs are destroyed have the right training, skills, and abilities to perform.

All the evidence and trends I see today points to this not being the case.

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #272 on: April 08, 2019, 09:45:37 AM »
I agree with the optimists on this board, that frankly there will always be jobs. Because the opposite conclusion is so damn depressing: A good proportion of people have no means or ability to add value to society.

For me, being depressed about a possible outcome isn't a good enough reason to believe it can't happen.  Jobs aren't matter/energy and won't necessarily always exist in the same quantity.  Jobs may not disappear entirely, but will the new jobs be created at a rate that replaces all or even most of the ones disappearing?  There's no guarantee that that will happen.  Even the jobs that MikeBT suggested have great potential to be automated.

Automation has been happening faster in the last generation than at any time in history. Is there a shortage of jobs? Or are we putting the cart in front of the horse?

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #273 on: April 08, 2019, 09:47:33 AM »
Yeah most of the people that have been against UBI usually have stated it's because they believe new jobs will be created because previously new jobs have been created.

However, there are a number of facts that have not been explained.

1. That the employment rate has been steadily dropping for the past few decades, indicating that even at the current pace of innovation, new jobs are not keeping up with automation.
2. You can point to "new" jobs that were "created" after major innovations, but they are not "new" in the sense of adding to the number employed. No these jobs displaced more workers than they created. 10 robot technicians will replace 100 factory workers. Good for robot techs, but in a world where the 100 factory workers become robot techs, they will just have replaced another 10,000 factory workers.

The only proliferation of jobs in recent years has been because of newly created industries. But there is no promise of more "new" industries. Humans can only consume so much. This forum is a testament to that. What do humans need after all major industries are 90% automated? Once Agriculture, Transportation, Energy, Finance, and Communication are automated, how many new jobs is the Creativity Industry going to create? Once job participation hits 50% when will we finally admit that automation is outpacing human output?

My guess is that new industry will be easily automated upon entry in the future. No, new industries will not create an influx of new labor opportunity, just of new capital.

Some people here think we'll revert back to a Downtown Abbey type servent/patron economy. I don't think so. Even Americans would revolt before that would happen. No, UBI is demanding that we face the facts of the rising output of automation vs. humans. It's going up, it continues to go up, and that trend has yet to slow down.

I'm honestly more afraid for economies like Bangladesh who have built a large part of their economy of being cheaper labor than US robots. (That and there are still some tricky robotics problems in textiles). I'm almost certain that in the next 20 years, clothing manufacture can be at least partially automated. That industry is 75% of the country's income. The US is better positioned than most, but even we have to be ready to reorganize who owns capital in a new economy.

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #274 on: April 08, 2019, 10:00:30 AM »
My guess is that new industry will be easily automated upon entry in the future. No, new industries will not create an influx of new labor opportunity, just of new capital.

Where, exactly, would this capital flow? It would flow to people willing to work and provide value to the people with money. Capital exists only insomuch that it allows for the transfer of value between individuals. Yes, it might mean more servants (my great grandmother was a maid and had no shame in that regard), but it might also mean more educators, more landscapers, more chefs, more architects, more engineers, more scientists, etc.

JLee

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #275 on: April 08, 2019, 10:05:46 AM »
My guess is that new industry will be easily automated upon entry in the future. No, new industries will not create an influx of new labor opportunity, just of new capital.

Where, exactly, would this capital flow? It would flow to people willing to work and provide value to the people with money. Capital exists only insomuch that it allows for the transfer of value between individuals. Yes, it might mean more servants (my great grandmother was a maid and had no shame in that regard), but it might also mean more educators, more landscapers, more chefs, more architects, more engineers, more scientists, etc.

Which are going to pay for an extraordinarily expensive education with what money, exactly?

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #276 on: April 08, 2019, 10:12:56 AM »
My guess is that new industry will be easily automated upon entry in the future. No, new industries will not create an influx of new labor opportunity, just of new capital.

Where, exactly, would this capital flow? It would flow to people willing to work and provide value to the people with money. Capital exists only insomuch that it allows for the transfer of value between individuals. Yes, it might mean more servants (my great grandmother was a maid and had no shame in that regard), but it might also mean more educators, more landscapers, more chefs, more architects, more engineers, more scientists, etc.

You're beginning to see that the monopolies of the 1880's are repeating themselves. A few companies are holding all the cards keeping back wages, suppressing the value of labor, and hogging all capital appreciation. This will work until it doesn't. If a UBI discussion provides the pressure to increase the minimum wage to $15/hr then I'll consider it a success. But either way, there's a pressure building in our economy and it has absolutely nothing to do with people's willingness to work and everything to do with the unequal outcomes of profits.

Capital is currently squeezing rent, wages, and living expenses dry. There needs to be a relief valve somewhere in the system, and it hasn't happened yet.

maizefolk

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #277 on: April 08, 2019, 10:13:45 AM »
Automation has been happening faster in the last generation than at any time in history. Is there a shortage of jobs? Or are we putting the cart in front of the horse?

Yes, and no respectively to your two questions.

The great recession and the increase in automation and efficency that came with it reduced the long term labor force participation rate by about 4% 3% points among working age adults.


Four percentage points doesn't sound like a lot, but that works out 10M 7.5M people who were able to productively contribute to the economy in the first decade of the 21st century but unable to find paid work in the second decade of the 21st century.

The main reason we don't see the shortage of jobs showing up in the unemployment rate is that the folks who weren't able to find jobs for years have dropped out of the labor force. Many of them have been absorbed by the social security disability program, which functions a little like a UBI except that it is dramatically non-universal and it is set up in such a way that it creates strong incentives to never return to work or earn any income ever again (two extremely negative outcomes a UBI is specifically designed to avoid).
« Last Edit: April 08, 2019, 10:26:45 AM by maizeman »

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #278 on: April 08, 2019, 10:16:41 AM »
My guess is that new industry will be easily automated upon entry in the future. No, new industries will not create an influx of new labor opportunity, just of new capital.

Where, exactly, would this capital flow? It would flow to people willing to work and provide value to the people with money. Capital exists only insomuch that it allows for the transfer of value between individuals. Yes, it might mean more servants (my great grandmother was a maid and had no shame in that regard), but it might also mean more educators, more landscapers, more chefs, more architects, more engineers, more scientists, etc.

Which are going to pay for an extraordinarily expensive education with what money, exactly?

Money is just a medium for exchange of value. Currently, society values education enough to tax the general population to provide a public education. Society would just need to increase taxation slightly on the rich and reallocate that capital to pay for additional teachers. Now, this would require higher taxes on the rich (same as UBI), but the money would not be shoveled to a cause that does not return value to society*.

*I understand this clause is an opinion in that it is debatable whether UBI would return value to society, but that is independent of the question of whether jobs will exist in some future ultra-automated society.

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #279 on: April 08, 2019, 10:22:19 AM »
My guess is that new industry will be easily automated upon entry in the future. No, new industries will not create an influx of new labor opportunity, just of new capital.

Where, exactly, would this capital flow? It would flow to people willing to work and provide value to the people with money. Capital exists only insomuch that it allows for the transfer of value between individuals. Yes, it might mean more servants (my great grandmother was a maid and had no shame in that regard), but it might also mean more educators, more landscapers, more chefs, more architects, more engineers, more scientists, etc.

You're beginning to see that the monopolies of the 1880's are repeating themselves. A few companies are holding all the cards keeping back wages, suppressing the value of labor, and hogging all capital appreciation. This will work until it doesn't. If a UBI discussion provides the pressure to increase the minimum wage to $15/hr then I'll consider it a success. But either way, there's a pressure building in our economy and it has absolutely nothing to do with people's willingness to work and everything to do with the unequal outcomes of profits.

Capital is currently squeezing rent, wages, and living expenses dry. There needs to be a relief valve somewhere in the system, and it hasn't happened yet.

I agree that social inequality is currently out-of-whack, and it is government's role (and by proxy the voters' role) to fix it. Maybe UBI will fix it, but I believe it will have massive unintended consequences, in that a whole generation of people may completely devalue work. I think a better way to fix it would be through more progressive taxation (among other things).

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #280 on: April 08, 2019, 10:25:37 AM »
I agree there's probably an upper limit to what Gini coefficient a stable western democracy can tolerate. It's probably in the low 0.40s (just a guess based on looking at various countries' historical Ginis).

The US is creeping up there, but other countries have a lot of room to move.

I would suggest that as the US approaches the limit, it would be in the interests of capitalist corporations to provide a minimal level of "free" services - similar to how now you can get lots of things for free but in exchange for your personal info/data. That might become a bit more pervasive and in 20 years you might see people with basic services paid for by Pepsi or McDonald's or Apple.

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #281 on: April 08, 2019, 10:33:52 AM »
Automation has been happening faster in the last generation than at any time in history. Is there a shortage of jobs? Or are we putting the cart in front of the horse?

Yes, and no respectively to your two questions.

The great recession and the increase in automation and efficency that came with it reduced the long term labor force participation rate by about 4% points among working age adults.

Four percentage points doesn't sound like a lot, but that works out 10M people who were able to productively contribute to the economy in the first decade of the 21st century but unable to find paid work in the second decade of the 21st century.

The main reason we don't see the shortage of jobs showing up in the unemployment rate is that the folks who weren't able to find jobs for years have dropped out of the labor force. Many of them have been absorbed by the social security disability program, which functions a little like a UBI except that it is dramatically non-universal and it is set up in such a way that it creates strong incentives to never return to work or earn any income ever again (two extremely negative outcomes a UBI is specifically designed to avoid).

I think it is ok for a reduction in the labor force. That's a tenet of Mustachianism. But I also believe in the incomparable advantage of having to work for what you get.

ETA: To address the labor participation directly, I think there are probably numerous reasons for this that don't involve the inability to obtain jobs. For example, the increase in social security disability is probably tied mostly to the obesity epidemic and its associated issues (and to a lesser extent to fraud). I honestly haven't studied labor participation in depth, but it sure isn't due to a shortage of jobs at the moment.
« Last Edit: April 08, 2019, 10:39:13 AM by Boofinator »

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #282 on: April 08, 2019, 10:34:57 AM »


For me, being depressed about a possible outcome isn't a good enough reason to believe it can't happen.  Jobs aren't matter/energy and won't necessarily always exist in the same quantity.  Jobs may not disappear entirely, but will the new jobs be created at a rate that replaces all or even most of the ones disappearing? There's no guarantee that that will happen.  Even the jobs that MikeBT suggested have great potential to be automated.

Emphatically NO.

I call  jobs created/jobs destroyed  the "Creative Destruction Ratio."

I have no doubt that the CDR  will continue to decrease.

I concede that I am decidedly  pessimistic on this issue

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #283 on: April 08, 2019, 10:37:12 AM »
Automation has been happening faster in the last generation than at any time in history. Is there a shortage of jobs? Or are we putting the cart in front of the horse?

Yes, and no respectively to your two questions.

The great recession and the increase in automation and efficency that came with it reduced the long term labor force participation rate by about 4% points among working age adults.

Four percentage points doesn't sound like a lot, but that works out 10M people who were able to productively contribute to the economy in the first decade of the 21st century but unable to find paid work in the second decade of the 21st century.

The main reason we don't see the shortage of jobs showing up in the unemployment rate is that the folks who weren't able to find jobs for years have dropped out of the labor force. Many of them have been absorbed by the social security disability program, which functions a little like a UBI except that it is dramatically non-universal and it is set up in such a way that it creates strong incentives to never return to work or earn any income ever again (two extremely negative outcomes a UBI is specifically designed to avoid).

I think it is ok for a reduction in the labor force. That's a tenet of Mustachianism. But I also believe in the incomparable advantage of having to work for what you get.

So just to be clear, you agree that recent advances in automation has produced a shortage of jobs? Great.

In that case we agree on the problem, we simply disagree on the solution.

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #284 on: April 08, 2019, 10:44:15 AM »
Automation has been happening faster in the last generation than at any time in history. Is there a shortage of jobs? Or are we putting the cart in front of the horse?

Yes, and no respectively to your two questions.

The great recession and the increase in automation and efficency that came with it reduced the long term labor force participation rate by about 4% points among working age adults.

Four percentage points doesn't sound like a lot, but that works out 10M people who were able to productively contribute to the economy in the first decade of the 21st century but unable to find paid work in the second decade of the 21st century.

The main reason we don't see the shortage of jobs showing up in the unemployment rate is that the folks who weren't able to find jobs for years have dropped out of the labor force. Many of them have been absorbed by the social security disability program, which functions a little like a UBI except that it is dramatically non-universal and it is set up in such a way that it creates strong incentives to never return to work or earn any income ever again (two extremely negative outcomes a UBI is specifically designed to avoid).

I think it is ok for a reduction in the labor force. That's a tenet of Mustachianism. But I also believe in the incomparable advantage of having to work for what you get.

So just to be clear, you agree that recent advances in automation has produced a shortage of jobs? Great.

In that case we agree on the problem, we simply disagree on the solution.

I edited my earlier response but not until after you responded. My fault for not directly responding to your comment on the reasons for the decline in labor participation in my first response.

There is obviously no shortage of jobs at the moment. I haven't studied labor participation trends in depth, but my hypothesis is that the decrease is due to 1) more affluence / earlier "retirement"; 2) less healthy lifestyles; and 3) more education. Probably more of a guess than a hypothesis.

maizefolk

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #285 on: April 08, 2019, 10:51:46 AM »
There is obviously no shortage of jobs at the moment. I haven't studied labor participation trends in depth, but my hypothesis is that the decrease is due to 1) more affluence / earlier "retirement"; 2) less healthy lifestyles; and 3) more education. Probably more of a guess than a hypothesis.

Would you mind providing some data to back up this assertion?

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #286 on: April 08, 2019, 10:56:48 AM »
There is obviously no shortage of jobs at the moment. I haven't studied labor participation trends in depth, but my hypothesis is that the decrease is due to 1) more affluence / earlier "retirement"; 2) less healthy lifestyles; and 3) more education. Probably more of a guess than a hypothesis.

Would you mind providing some data to back up this assertion?

Would a low unemployment rate be sufficient? https://data.bls.gov/timeseries/LNS14000000

maizefolk

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #287 on: April 08, 2019, 11:01:41 AM »
There is obviously no shortage of jobs at the moment. I haven't studied labor participation trends in depth, but my hypothesis is that the decrease is due to 1) more affluence / earlier "retirement"; 2) less healthy lifestyles; and 3) more education. Probably more of a guess than a hypothesis.

Would you mind providing some data to back up this assertion?

Would a low unemployment rate be sufficient? https://data.bls.gov/timeseries/LNS14000000

Unfortunately no. As I explained in my first post, the reason the unemployment rate is low is because lots of people who were previously able to find work (prior to 2008/9) have been driven out of the labor force and into poor UBI substitutes like SSDI. One of the really bad things about SSDI, an a way it is inferior to a UBI is that the rules for SSDI prevent them from reentering the labor force, even if there is temporarily a job they could be doing.

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #288 on: April 08, 2019, 11:10:06 AM »
There is obviously no shortage of jobs at the moment. I haven't studied labor participation trends in depth, but my hypothesis is that the decrease is due to 1) more affluence / earlier "retirement"; 2) less healthy lifestyles; and 3) more education. Probably more of a guess than a hypothesis.

Would you mind providing some data to back up this assertion?
Yeah.
For decades it has been the epitome of politics to "create jobs" in every country in the world. Why, if there is an abundance of them?
Not to mention the type of jobs problem.
The biggest job increase in the US in the last decades has been in middle management (those who most people think are the most useless people in any company) and (their) administrative staff.
Or in other words, paper pushers.

Granted, in some cases those jobs are genuine, but if you remember that "paper pushers" should have decreased by at least 50% because of computers, then the fact that they have increased far more than the people whose papers they are pushing around is strange, isn't it?

For example while teaching staff at universities has increased by approximately 50% in the last 30(?) years, administrative staff has increased by 150%.
btw. in private institutions a bit more than in government owned. So much for "effective market forces" ;)


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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #289 on: April 08, 2019, 11:10:34 AM »
Unemployment statistics are culled from the people who are signing on for state & federal unemployment benefits.  When those benefits run out, those people are not counted as unemployed, even if they haven't found work.  Also, the data used to determine the unemployment rate considers 1 hour of a work a week employment, regardless of how much money is being earned in that hour.  So it leaves out a lot of underemployed people too.

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #290 on: April 08, 2019, 11:10:53 AM »
There seems to be two basic schools of though on this topic:

1)  Things are being automated and those jobs are going away

2)  Yes, things are being automated, but in the past that has lead to creation of new types of jobs

I've said this before, but even if 2) is more close to correct, it does not follow it will be a smooth transition.  From about the 1880s through the 1930s and even later there was literally blood in the streets, including violent overthrow of several governments by groups claiming to represent workers.  This country was far from immune from the violence as well, although that's something they tend to skip over in history class.

If either scenario is correct (some sort of blend also seems possible) then the transition has the possibility of looking really scary and we need to start thinking about that transition might look like.   I don't know if UBI is the answer, but it is something we should consider. 

LennStar

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #291 on: April 08, 2019, 11:13:12 AM »
There is obviously no shortage of jobs at the moment. I haven't studied labor participation trends in depth, but my hypothesis is that the decrease is due to 1) more affluence / earlier "retirement"; 2) less healthy lifestyles; and 3) more education. Probably more of a guess than a hypothesis.

Would you mind providing some data to back up this assertion?

Would a low unemployment rate be sufficient? https://data.bls.gov/timeseries/LNS14000000
No, because except taxes there is nothing that is more "optimized" than the unemployment rate.
e.g. in Germany the real unemployment rate - people who want to work but are not "allowed" a paid job - is double as high as the unemployment rate.
Not to mention that our "low" unemployment is based on the high unemployment of other (EU) states, but that is a different topic.

Telecaster

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #292 on: April 08, 2019, 11:17:27 AM »
Unemployment statistics are culled from the people who are signing on for state & federal unemployment benefits.  When those benefits run out, those people are not counted as unemployed, even if they haven't found work.  Also, the data used to determine the unemployment rate considers 1 hour of a work a week employment, regardless of how much money is being earned in that hour.  So it leaves out a lot of underemployed people too.

This is not correct.  Unemployment stats are compiled from a monthly household survey.   If you are not looking for a job, say due to retirement, or disability, then you are not counted as part of the labor force.   If you are part of the labor force and looking for a job you are counted as unemployed.   That's the most commonly reported unemployment figure.  But they track other measures of employment as well.

Cool Friend

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #293 on: April 08, 2019, 11:22:15 AM »
Unemployment statistics are culled from the people who are signing on for state & federal unemployment benefits.  When those benefits run out, those people are not counted as unemployed, even if they haven't found work.  Also, the data used to determine the unemployment rate considers 1 hour of a work a week employment, regardless of how much money is being earned in that hour.  So it leaves out a lot of underemployed people too.

This is not correct.  Unemployment stats are compiled from a monthly household survey.   If you are not looking for a job, say due to retirement, or disability, then you are not counted as part of the labor force.   If you are part of the labor force and looking for a job you are counted as unemployed.   That's the most commonly reported unemployment figure.  But they track other measures of employment as well.

I learned something new today!  :D

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #294 on: April 08, 2019, 11:26:16 AM »
There is obviously no shortage of jobs at the moment. I haven't studied labor participation trends in depth, but my hypothesis is that the decrease is due to 1) more affluence / earlier "retirement"; 2) less healthy lifestyles; and 3) more education. Probably more of a guess than a hypothesis.

Would you mind providing some data to back up this assertion?

Would a low unemployment rate be sufficient? https://data.bls.gov/timeseries/LNS14000000

Unfortunately no. As I explained in my first post, the reason the unemployment rate is low is because lots of people who were previously able to find work (prior to 2008/9) have been driven out of the labor force and into poor UBI substitutes like SSDI. One of the really bad things about SSDI, an a way it is inferior to a UBI is that the rules for SSDI prevent them from reentering the labor force, even if there is temporarily a job they could be doing.

Let's just consider the people on SSDI (ignoring the other categories of affluence and education I had mentioned). Either these people are seriously sick and/or disabled, or they are committing fraud. In the former case, SSDI is doing its job; in the latter case, it isn't. What percentage of people do you feel fall into the "fraud" category? Do you think SSDI is a bad program even if there is a large percentage of people on it committing fraud? I was curious so did a little web browsing; here's an interesting take on the subject: https://takingnote.blogs.nytimes.com/2015/09/08/busting-the-myths-about-disability-fraud/. So it looks to me that 1) SSDI fraud is difficult, 2) you have to pay into the social security program to collect SSDI (so it isn't like UBI in that respect), and 3) SSDI claims are not increasing per capita. According to https://www.ssa.gov/disabilityfacts/facts.html, only 9 million people are on SSDI, and they are allowed to go back to work without losing all of their benefits.

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #295 on: April 08, 2019, 11:35:18 AM »
There seems to be two basic schools of though on this topic:

1)  Things are being automated and those jobs are going away

2)  Yes, things are being automated, but in the past that has lead to creation of new types of jobs

I've said this before, but even if 2) is more close to correct, it does not follow it will be a smooth transition.  From about the 1880s through the 1930s and even later there was literally blood in the streets, including violent overthrow of several governments by groups claiming to represent workers.  This country was far from immune from the violence as well, although that's something they tend to skip over in history class.

If either scenario is correct (some sort of blend also seems possible) then the transition has the possibility of looking really scary and we need to start thinking about that transition might look like.   I don't know if UBI is the answer, but it is something we should consider.

100% in agreement. If the economic situation continues to strain, things could get ugly. I think a lot of the problem can be corrected by better policies (appropriate minimum wage, decoupling health insurance from employment, more progressive taxation, etc.). Though I could certainly be wrong, I think the disincentives of UBI outweigh the benefits.

maizefolk

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #296 on: April 08, 2019, 02:52:59 PM »
Let's just consider the people on SSDI (ignoring the other categories of affluence and education I had mentioned). Either these people are seriously sick and/or disabled, or they are committing fraud.

Or there is a continuum where, if there are certain types of jobs available, you are able to work and earn a living, but if those jobs go away, you aren't able to do the ones which are left, and you have no option but to apply for disability.

Consistent with this model, the proportion of disability claims which are for muscular and connective tissue issues (essentially a proxy for chronic pain) and mental illness have increased dramatically in the last two decades from 25% of claims to 50% of claims. These are cases where there can be many shades of gray between disabled and not. (In contrast to, say, being a quadriplegic which really is a binary yes/no state).

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In the former case, SSDI is doing its job; in the latter case, it isn't. What percentage of people do you feel fall into the "fraud" category?
I don't have adequate data to speculate, but I cannot think of an answer which would change the point that we have a shortage of jobs [that people in this country without jobs currently are able to do].

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Do you think SSDI is a bad program even if there is a large percentage of people on it committing fraud?

I don't think SSDI is a bad program. I do think it is a poor substitute for for a UBI, because it does discourage people from returning to work if work they can do becomes available. But given the choice between SSDI and letting people who aren't able to get jobs starve in the street I will chose SSDI any day of the week.

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So it looks to me that 1) SSDI fraud is difficult,

I don't know enough to comment, but I don't see how the discussion of fraud is relevant to my point that we have a shortage of jobs in this country that the people who are currently out of work/out of the labor force have the skills and training to perform.
 
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2) you have to pay into the social security program to collect SSDI (so it isn't like UBI in that respect)

Agreed. So while SSDI can partially and poorly substitute for a UBI in the short term, because a lot of the long term unemployed are in their 40s, 50s, and 60s and have paid into social security for years before they became unemployable, it will not be able to substitute at all in the long term (multi-decadal time frames), as young people who are never able to find work won't be able to tap into the closest thing we have to a social safety net at the moment. 

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3) SSDI claims are not increasing per capita.

This statement appears to be false or misleading. In 1980 2.5% of working age adults eligible workers received SSDI (edit: and was as low as 3.3% as recently as 2000). Today (well in 2017) 5.2% do. One way to reconcile the numbers would be if a larger proportion of SSDI claims are being granted, but I don't have any data one way or another on that.

In parts of the country where the economy is particularly poor (deep south and Appalachia) there are many counties where more than 10% of all working age adults are already on disability:



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According to https://www.ssa.gov/disabilityfacts/facts.html, only 9 million people are on SSDI, and they are allowed to go back to work without losing all of their benefits.

You can go back to work for up to 9 months before your SSDI benefits are cut off. Given how hard it can be to convince a disability judge that you really are disabled in the first place (particularly for hard to validate from the outside issues like chronic pain or mental illness) that's not nearly a great incentive to pursue short term or insecure gainful employment opportunities if they become available.
« Last Edit: April 08, 2019, 02:58:42 PM by maizeman »

Boofinator

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #297 on: April 08, 2019, 03:33:09 PM »
I always love your detailed and well-thought out responses. One clarification on my comment that "SSDI claims are not increasing per capita": this was a poorly written summary of what the article actually stated, which was that there appeared to be no increase per capita when stratified by age groups, and since baby boomers are aging it has resulted in an overall increase per capita.

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I don't think SSDI is a bad program. I do think it is a poor substitute for for a UBI, because it does discourage people from returning to work if work they can do becomes available.

I don't doubt that the current structure of SSDI discourages some amount of work from the small percentage of people in the program to begin with. And since UBI does not have a financial disincentive for work, it avoids this pitfall. But in my mind, UBI provides a strong disincentive for people to seek work all by itself in that their needs can be met while doing whatever they want all day every day. Tying this together with the fact that most people's first job is making a lowly wage (because learning to work and become a contributing member to society is not easy), a lot of people will simply shrug off the idea of working altogether. And in my mind, it gets worse from there. To use concrete numbers, let's say 20% of the population decides not to work and just live off UBI for what amounts to their entire lives (because it's never really a good time to find a job). Do you see this society as being healthy and vibrant?

Call me idealist, but I believe a healthy work ethic is to some extent both a learned behavior and imperative to a functional society. And UBI would have negative consequences for work ethic (on average).

maizefolk

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #298 on: April 08, 2019, 06:45:06 PM »
Ah that does make more sense. The numbers I could find still show an increase (although admittedly a smaller one) after correcting for age and sex, but obviously different people with different models are going to get moderately different results even when trying to correct for the same factors.



But in my mind, UBI provides a strong disincentive for people to seek work all by itself in that their needs can be met while doing whatever they want all day every day. Tying this together with the fact that most people's first job is making a lowly wage (because learning to work and become a contributing member to society is not easy), a lot of people will simply shrug off the idea of working altogether. And in my mind, it gets worse from there. To use concrete numbers, let's say 20% of the population decides not to work and just live off UBI for what amounts to their entire lives (because it's never really a good time to find a job). Do you see this society as being healthy and vibrant?

Call me idealist, but I believe a healthy work ethic is to some extent both a learned behavior and imperative to a functional society. And UBI would have negative consequences for work ethic (on average).

So let's break this down because you have three points here:

#1. The first is that your gut instinct is that a UBI would cause a significant decrease in the number of people who chose to work.
 Let's look at the data we have from experiments.


In the New Jersey Graduated Work Incentive Experiment back in the 1960s and 1970s found that providing a guarenteed basic income to households resulted in one hour less worked per week for men (so let's call it a 2.5% reduction). The reduction for women was substantially larger (about 5 hours less worked per week, so let's say 12.5%), but was driven primarily by young mothers choosing to stay home with children rather than work, which translated into significantly better educational outcomes for children in the households included in the study.

In the Canadian "Mincome" Study conducted in Dauphin (at town of about 13,000 people), again found that the only people who worked less were mothers of children and teenagers, and that this reduction in work was again reflected in substantially improved educational outcomes.

There are new trials going on right now in Finland, the Netherlands, the UK, Canada (Ontario) and the US (Oakland). If, as seems likely to me, these modern studies replicate the results observed in the NGWIE and Mincome experiments that, aside from allowing mothers who chose to do so to spend more time with their children, a UBI does not produce any substantial decrease in labor force participation itself, would you change your views?

#2 The second is whether a society in which fewer people chose to work is a better, worse, or equivalent on to the one we have today.

 No, I don't think work, in of itself, has any special moral value. A society where no one has any drive or passion is clearly a poorer one. But I know plenty of folks not currently working for a living who still have passion and work hard. When I was younger and hung out more in minimum wage circles, I also know plenty of people who showed up for their shifts on time and collected their paychecks, yet completely lacked passion or drive.

#3, The third is our original disagreement over whether or not people who are willing to work will be able to find jobs in the future.

We may have to agree to disagree on this one. But hopefully I have at least given you some useful things to think about and you will be open to reevaluating your position in the future when (or if) the displacement from paid work becomes more obvious for an increasingly large swath of able bodied americans.

To modify your own question from above, let's say 20% of the population is unable to find paid work, nor are they able to be absorbed by the modest social safety net we currently have (SSDI, private charity, support from/living with extended family, etc). Do you see that as a healthy and vibrant society? Or a society where you'd feel safe walking the streets at night?

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Re: $1000/month Universal Basic Income - Andrew Yang
« Reply #299 on: April 08, 2019, 08:39:10 PM »
Some of these posts are quite depressing.

You will never get a Universal Basic Income (UBI) because the people with the money control the media and the politicians.

Now -I think the outcome to this depressing situation will lead to either one or both of the following outcomes:

1)  The long awaited proletarian revolution predicted by Marx and Engels is finally going to happen.  Some of you have hinted at it in your posts and drawn parallels to the guilded age of the 1890s.  Anarchy may even make a comeback.  Seems like this terrorism thing happening all over the world is somewhat similar to the anarchists of days of old.

2) I saw this movie when I was a kid .  It never quite left my mind.  It was called Soylent Green.  It'll be a great solution to the issue.  A needed product will be produced that will free up a lot of the land now used to produce beef cattle, etc.  It's a food product.  The ingredients will be a well kept secret like Coca Cola or the 7 herbs and spices in Kentiucky Fried Chicken.  It can be easily produced and can be exported to the burgeoning populations of China and India.  Farmers won't be needed for the product.  (Farmers, farmers - we don't need no stinkin farmers.)  It can be marketed as the "new" in style way to eat.  People can be sold anything with the right marketing.  There are current legal issues with the product, but I'm quite sure the GOP is working on them.