Unconditional Basic Income is a Pigovian Subsidy for Unpaid Work
There's something about unpaid work that I've never actually seen discussed, and that's the cost of the work that's paid...
Take for example the amount of unpaid care work in the US that's estimated as being around $700 billion per year (and mostly done by women). That's an invisible work force comprised of 1/3 of Americans putting in over a billion hours of free work per week. What if they all went on strike and refused to work for free anymore? Perhaps because they're tired of being seen as lazy simply because the work they do isn't remunerated. Well, that work still needs to be done, right? That means the demand for paid caregivers rises considerably. Now, some of the unpaid caregivers would become paid caregivers, but they wouldn't all do that. So the price everyone pays for care work would go up due to demand exceeding supply. Additionally, government spending on care work would go up, and therefore taxes would also need to go up.
Now the interesting thing to realize here is that everyone right now is enjoying low prices and low taxes thanks to all those people choosing to do entirely necessary work for free. Everyone's taxes are lower because of unpaid work. Everyone's prices are lower because of unpaid work. Everyone keeps a larger percentage of the money they get for doing paid work, because of the free work unpaid workers are doing.
Now consider unconditional basic income. It will go to all unpaid workers (and paid workers), and it will be paid by those being paid large enough incomes that their own basic incomes don't cover the increase in their taxes required to pay for the basic income. Remember though, unpaid work is currently lowering prices and tax burdens. So a higher tax burden is simply eliminating the artificially low tax burden, and subsidized costs.
If right now, because of unpaid work you are benefiting from invisibly, you're paying say $700 per month on care work, and it would be $1,400 per month if all unpaid workers stopped working, then you owe $700 per month to those workers. If your taxes are 30% of your income but they would be 40% if all unpaid care workers stopped working, then you owe 10% of what you earn to those workers.
Basically, just like how carbon tax is a Pigovian tax meant to correct for the unpriced negative externalities of greenhouse gas emissions, the tax increase required to fund a full basic income can be seen as Pigovian in nature too. It would be a market correcting tax where what's currently not being calculated in markets are the positive externalities of unpaid work. UBI is thus a Pigovian subsidy.
Everyone right now is benefiting from unpaid work. There is a ton of unpaid work going on. With unconditional basic income there will be even more unpaid work as that option opens up to many more people than those to whom it's currently limited - those who can afford to do unpaid work. That UBI will require an increase in taxes is simply recognizing that right now because of all the unpaid work going on, we're all receiving positive externalities without paying for them.
Complaining about higher tax rates for UBI is akin to not paying any taxes at all for roads, but driving on them every day, and enjoying the prices of goods and services that are only as low as they are because of roads, and complaining about a tax being introduced to pay for them. Paying for public roads isn't stealing. NOT paying for public roads is stealing.
One final note if it isn't obvious for those like Joe Biden. Unpaid work is work. It also tends to be more meaningful than paid work, because why else would people be doing it for free? Work that you can only get someone to do in exchange for money tends to be far less meaningful than the work people do because they simply want to do it. That should be obvious, but it unfortunately isn't because we're all just so used to money helping define one's worth.
Money does not define work's value. Wealth does not define YOUR value. Money is what we use to get people to do work they wouldn't do otherwise. If we want a world full of far more meaning, we'll automate the work people don't want to do, pay people far more for the work people don't want to do and machines don't yet make sense to do, and we'll enable everyone to pursue unpaid work over paid work.
Unconditional basic income is the foundation of that new world.
Additional UBI images for sharing:
Genial!
I upturned a thread about Taxes on the Rich a few days ago, where the figures used began in the '80, the time when taxes on the top incomes were the lowest they have been for the vast period preceding the 80's since the income tax came about not much more than 100 years ago and provided the whole enchilada which nobody dared to address and the author kept insisting that regardless of History, regardless of the Long Periods of Extremely High Taxes (90% vs the current 28%, historically the lowest was 25%) taxing people in brackets is not fair.
In this Anarchist Community uttering the word Taxes will meet you with eyerolls and rightfully so, as Taxes is exactly what everyone, anarchist or otherwise Abhors , admittedly or not. What we know of as Taxes and what we believe are Taxes are two entirely different concepts though.
All taxes that people pay, go to a Federal Account which cancels out the Interest on the National Debt. All money that is paid in taxes, as has been admitted since the 80's, goes into an account to pay the interest on the national debt. Taxes have not been what we knew as taxes for who knows how long, what's safe to say is that for as long as Government has been Begging the Federal Bank for loans it's not our government anymore and it's only a pet to the bank.
What we believe as things being funded by contributions from the Tax, what we believe Pays for All that is "Government" and what actually pays for "government" are two completely different things. One is the work that is Taxed, the net positive, and the other is a loan, which amounts to Fraud, regardless how you explain the source of the funds, which is either clearly our labor and wealth, or make believe money that directly represents Debt.
"Government" is funded by Make Believe Money, which gets created out of thin air by the request of "Government" for funds. Essentially the "government" PLEADS, like a Sheep, with the Bank to give it more.
The reason we are taxed then, we are told that this helps keep the Inflation in check. The problem with that argument is that the only thing that keeps Inflation in check is the Bank. We are paid out in Debt, promises to pay, and we extend this promises to pay whenever we spend fiat money and inflation and supply, is entirely in the control of the Bank.
What we need is to create a system of money that represents a value which cannot be hedged, this is sane, smack in the face logic, how do we do away with the Fractional Reserve Pyramid Scheme, and any and all commodity backed currencies which are at the hands of Suppliers/Producers.
The money might be make believe, but the debt is not, and our future generations will suffer because of it.
Debt to who. Why would they suffer?
To holders of treasuries and dollars as reserve currency (the fed and foreign countries ). They will suffer when the dollar crashes in value and America starts to look like Venezuela. ..
It's not a debt though, it's only fraud, and fraud has no statute of limitations. When the dollar crashes they lose all power, not us, the bankers and all who claim that we owe them shit even though they have absolutely no contract to establish any such claim of priority interest and in fact the people are what hold the priority interest in all these banks, and this is by their (bankers) own admission and words.
Think it through, who loses and what is lost, because we are dealing with fraud and IOU notes, which is why even though the dollar was poised to collapse decades ago it is kept up by the bankers because NOBODY is buying into their games anymore, so if they do crash it who do you think the pitchforks are coming for? The Politicians? the plutocracy? or the vermin that funds them? We have our facts straight and the people responsible for how the corporation (aka gov) is run are the US Trustees, and who do you think they are?
I agree with you buddy. Problem is that they will be hurting a lot of people who have savings in dollars. And that is just messed up. We're on the same side you and me. Thanks for the comments
Why would they pull the plug on the dollar. Not saying it cannot happen but these psychopaths have no chance at cohabitation if they do that, they know that should the dollar collapse because someone spilled some coffee on the keyboard where they offset the dollar circulation volume with quadrillion worth of adjustments that they better make it to the spaceships because who knows how many are coming for them. We live in interesting times and I hope these psychopaths understand that their window closed relatively recently, they have no more chance of bailouts, no more schemes, their offer to contract has been refused.
Amen! Haha
Pertinent, nice post mate. They say that if you love your job you never have to work another day in your life. This rings true, nice one. Cheers ;)
Thanks! And yes, that's so true. The fact we even think of work/life balance is I think it's own signal that we've weirdly divided life where no division should really exist. If you love what you do, that's life. Period.
Yes! I've always hated the idea of work/life balance. It seems to me far healthier to work towards personal integration.
Like basic income, it's a support structure letting us live, work, create, and play in more of the ways we love – instead of dividing ourselves into countless siloed parts.
Good read. Working has seems to take a lot of me , it is then I realized that there’s abundance opportunity to make money rather than be a salaried worker.
If everyone just do the work they love and they got paid while doing it, that would be awesome world we live on. Each and single one of us would be happy. But that is too far-fetched
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This is a joke right? You want to tax people to pay parents for taking care of their own kids? How high are you right now? If you think taxes programs work, just point to one now you are happy with.
I have believed UBI is probably the only way forward for some time now. I do think it gives individuals a lot more chance to be creative and contribute to society, from which society will definitely benefit. It should also break the current 40 hour interface between employee and employer, which creates dependencies and stresses on both sides. This is the first I have heard about the unpaid externalities being better compensated, which also makes a lot of sense. Thanks for the insight!