top | item 45592003

(no title)

nebulous1 | 4 months ago

How come?

discuss

order

dontwannahearit|4 months ago

UBI would basically be a massive transfer of wealth to rich landlords. There is no fixed price for housing, it's based on what the market will bear. If suddenly everyone has X to spend on housing then the landlords will decide that the price is X * 0.3.

dragonwriter|4 months ago

> UBI would basically be a massive transfer of wealth to rich landlords.

No there’s no realistic scenario where that is true; that requires assuming (aside from “landlords capture all marginal income increases, as a first order effect”, which is silly in itself) that (1) the inflationary effect of the additional spending of UBI is offset by taxing money out of the economy (otherwise there is no increase in wealth for landlords to capture), and (2) that tax does not fall more heavily on “rich landlords” than society generally.

> There is no fixed price for housing, it's based on what the market will bear

That's true of essentially all good and services in the economy in the economy under a market system. Its true that some parts of the US have artificial housing supply constraints, but those are also under policy attack.

> If suddenly everyone has X to spend on housing then the landlords will decide that the price is X * 0.3.

A UBI of $X, in any realistic scenario, doesn't mean that everyone has +$X of additional disposable income, the difference from traditional welfare programs is that instead of a rapid clawback creating an area somewhere in the poor to middle income range where additional outside income has little, zero, or sometimes negative impact on program-inclusive income, clawback is shifted into the progressive income tax system where it is never (except maybe at extremely high incomes) consumes the majority of marginal outside incomes, definitely doesn't consume >100% of marginal outside income, and doesn’t kick in any significant way below the middle of the income distribution.

(This also eliminates having a separate mechanisms for income verification and clawback through benefit adjustment, simplifying benefits and rolling that function into changing the numbers in the tax system in a way which doesn't increase the overall work of assessing and collecting, so that you also burn fewer resources on administration.)

jandrese|4 months ago

As opposed to the current situation? Landlords are always going to try to squeeze the tenants, that's the nature of being middlemen.

mytailorisrich|4 months ago

Do the math. It'd cost huge, huge amounts of money that would need to come from somewhere, except there is no such "magic money tree". So in practical terms it is impossible. Or you print money to finance it and things balance themselves out in the end through inflation and you end up handing worthless money.

mothballed|4 months ago

It would depend a lot on just how much people value working or producing to get luxuries. I would guess people trying to do something like bag a wife/girlfriend would value them a lot if they were trying to impress a certain segment of most sought after mates and thus would man the machines to gain the prestige, but yeah there are plenty of people out there that are happy to just have necessities and then go skateboarding or smoking crack or whatever and presumably that would significantly lower production of necessities produced by those people.

stronglikedan|4 months ago

You underestimate the administrative spend in the welfare system. That's where the money would come from, and there would be plenty.

schwartzworld|4 months ago

In America there used to be a 90% marginal tax rate the wealthiest members had to pay. They used their influence to do away with it.

I’m just saying, I know where the money is. One man’s “right” to own a billion dollars doesn’t outweigh providing the base needs of living to everybody.

toomuchtodo|4 months ago

Central bank prints the money, puts it into bank accounts or hosts the bank accounts itself. Government taxes money to destroy it. I think its interesting if you can assign money different "classes" or make it programmable; give fiat away to stoke consumption but make it have an expiration or prevent it from being invested if sourced from a central bank allowance, but lots of hazards too (usual suspects of human governance failure modes). Money earned "human to human" could have a different, higher value or class than money printed for consumption of goods or services that can be produced by automation also comes to mind. Much better imho than the blunt instrument of target interest rates for adjusting the speed of an economy and blanket fiat value.

https://en.wikipedia.org/wiki/Modern_Monetary_Theory

hopelite|4 months ago

I don’t mean to denigrate anyone, but I don’t think you understand that no amount of logic will ever be able to sway emotions let alone most propaganda conditioning.

People like the idea of UBI on an emotional level, and they would probably support UBI, even if the wealthy and powerful of the world came out and had a joint global press conference, declaring that the whole purpose of UBI is a fraudulent plant to further enrich themselves at the expense of everyone else on the whole planet and that UBI is just the vehicle for doing that. The response would be something like “ok, but when do I get UBI”.

Whatever the processes in humans is that allows such things to happen, it seems very common across most domains, even in fields where one would believe that everyone is logical and applies scientific principles, only to find out that no, if emotions clash with scientific logic, then clearly the scientific logic must be bent and manipulated to meet the emotion.

ninalanyon|4 months ago

The money comes from taxation.

Another way of looking at UBI is simply as an adjustment to the tax system that shifts the baseline of the tax curve to that people with less than a certain income receive money instead of paying it. This probably works better in countries hat have a more nearly smoothly varying progressive tax rate than those like the UK which have just a few widely spaced thresholds.

Then it is simply a case of adjusting the parameters of a fairly simple formula so that the total tax revenue is as it was before and that the minimum after tax income is something one can live on.

The general idea is that in civilized countries you are paying out the money anyway, just less efficiently.