Problems With Universal Basic Income - The Highs and the Lows

With all of the talk about UBI, Universal Basic Income, I felt I should comment upon it, shedding some light on the actual problem and why UBI is a further disease, not a cure. And more importantly, talking about the actual root(s) of the problem will help move the discussion towards an actual solution.

The Real Root of the Problem: Low IQ people

People with IQs lower than 85. These people are so difficult to train to do anything that The US military won't recruit them. Even with the playing field completely levelled, these people cannot compete for jobs. They are hired almost exclusively to do very menial tasks, like sweeping, and usually out of pity, or because someone's kid needs a job. Paying them minimum wage is being very charitable.

I know this sounds like putting people down, but it is the truth of the matter. And we, as a society, need to realize that this group exists, and stop ignoring them, as we ignore homeless people (which a large percentage of this group are.)

Let me try to explain the frustration of working with this group. Imagine trying to explain, painstakingly explain, to someone how to do third grade math. And they just aren't getting it. (and they are not 8 years old) So, you cannot rely on them to do more than simple counting, and you really cannot rely on them to do simple arithmetic. They cannot handle things outside of routine. Often not at all. With nervous breakdowns or weird (sometimes violent) behavior if their pattern is upset. It is very much like working with children; like children with an adult's strength and mass.

Most people would like to just put all of these people in a padded cell and forget them. And that is what our society does now, but our padded cells are bigger and are lined with asphalt and concrete.

Giving these people money corrects none of their issues and often doesn't even get them fed. Just beat up as thugs take their social security checks.

Further, what these people want is to feel useful. To feel like they are contributing. That they are part of society. But, in our busy, hustle / bustle world, few have the time and patience to deal with them. They cannot just be given a broom and told to clean up. They usually need moderate supervision, if not constant supervision.

The other end of the problem: The Pareto Principal

The Pareto Principal, or the 80/20 rule, states that 80% of the work is done by the top 20% of the people. This means, if you do not allow this top 20% of people to perform to their peak, then you are going to miss out on 80% of the stuff being done. This is why socialism fails. And fails in a big way with people literally starving to death.

Lets say you have the baseline of getting 100 widgets manufactured under capitalism. Then you switch to socialism, and you are suddenly down to 20 widgets being manufactured. (please ignore the ivory tower definitions of socialism and crapitalism at this time, and look at the actualities of cold war USSR and The US.)

This difference in output happens because the top 20% are no longer incentivized to perform, they, under socialism, have their lives threatened if they try to perform. Usually they are the ones to go to the gulags for voicing their opinions in the face of the all powerful/all knowing ruling class. (who hate being shown up) The nail that sticks up, gets pounded. So, either these people learn to keep their mouth shut, fit in, conform and don't do anything exceptional that might get you noticed. Keep their heads down, or get pounded.

This even happens in union shops. Where you do the exact minimum you are told to do, or you will meet with an unfortunate accident. And the production levels before and after unionizing show this to be true.

(The reason for unions, the rich taking advantage of the workers is a whole other article)

Conclusion

So, currently we have two systems. One that unleashes the top 20% and forgets the bottom 20%. And the other that destroys the top 20% in favor of everyone being like the bottom 20%.

We can so easily see that neither system works very well. They each have huge holes. And what we have today is a mixture of the two. But instead of taking the best from both systems, we get the problems inherit in both.

Does Universal Basic Income help out the top 20% or the bottom 20%? No.

It does not help the bottom 20% as they really need a lot more help than to just have money thrown at them.

It does not help the top 20%. UBI will be a tax that this group pays for. This is the upper middle class we are talking about, the ones who pay all the taxes. (the lower class gets as much or more in handouts as they pay in taxes, and the elite pay nothing in taxes.) Too much tax and this class stops working. And that hurts everybody.

This group just needs opportunity. Stories abound about one filing bankruptcy, and then they are back at it. UBI might be a good safety net, but this group rarely needs it. But, they would be the ones to put it to the best use.

Now, the important question, does UBI help the middle 60%? Maybe, maybe not. I will explore that thought soon.

All images in this post are my own original creations.