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RE: Universal Basic Income as an Alternative to Higher Minimum Wages

in #basicincome7 years ago

Actually minimum wage is the reason people can't find jobs. Business will be competitive if wage is lower, why pay shipping from China or Mexico when wage is similar in the original country. The main reason of raising minimum wage is, in my opinion, that the "vote me I give more free stuff" politicians need more tax revenue to prevent a default of the gov.
I am expecting an argument about price inflation making upward move of wages necessary. But please think back what cause price inflation. When an irresponsible Gov./Central Bank pair produce more currency resulting in more currency chasing the same amount of output then you get price inflation. Basically if the inefficiency of a big government is not dealt with, I don't think UBI or any form of transfer policy will help the people as the inflation tax will always out pace the wage increase.

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