Good News from the Lindsay Advocate

About 5 o'clock this morning I had considered posting about how teledildonics will change the way that people might interact physically in the future (future is now). About 7 o'clock this morning I had considered posting about "Why I Hate Islam" but having nothing to do with the belief system but more importantly how the Canadian government has Motion 103 which is less about our Canadian culture of Acceptance and more about a Government wanting to dictate what people are "allowed" to think and discuss as well as giving some individuals a way of lining their pockets with millions of dollars.

Thank goodness for the Lindsay Advocate. They have given me an opportunity to meta-report about Universal Basic Income (UBI). While I cannot discuss first hand experience with the individual noted in the article I can comment on how people in real life compare to the anticipated negative effects of UBI.

1 - Incentives Work, Handouts Don’t

Incentives are a powerful force. And there is no greater incentive than financial security and holding a job is essential to that end. When something comes easy, it is easily taken for granted. And while it would be nice to believe otherwise, giving cash handouts to every American incentivizes them to try that much less.
By removing the financial incentive to work, the state is encouraging idleness, something contrary to the entrepreneurial spirit so deeply woven throughout our country’s history.
During the Clinton era, the welfare state saw tremendous decreases. But that didn’t mean there were millions of Americans struggling to get by. Employment actually increased because individuals were incentivized to get jobs when there was no longer a guaranteed safety net.

Response:

“I prefer to work. For one thing, I work to get me out of the house, and it’s a little bit of extra income during the week,” she says, since they pay weekly.
“Then I’ve got some each week to live off of. Plus, I don’t believe in taking anything for free. I feel better for working because I contribute to myself and it helps with my depression to get out.”

There is a difference between an incentive and desperation. Going to work is more than just a means to get money. There are many other things involved including social interaction and personal self esteem. While some people might reduce or stop the amount of work they would do, they would devote themselves in other areas (volunteering in hospitals etc). Adding the UBI to this person's income did not diminish the number of hours that she worked, even though it doubled her monthly take home. Consider if you personally received a raise at work. Would you reduce the number of hours?

2 - Quality of Life

Quality of life is often ignored in the current discussion. There are millions of people currently on benefits whose life is miserable. Extending the idea of welfare to all under the guise of UBI we are in danger of extending misery. There are certainly many who would prefer to live poorly, as long as they do not have to get up in the morning and do any work.

Response:

“Even mentally I feel better,” says Munro, “because I know I still have some money in my bank account” later in the month. “Before it was a constant battle of what do I pay first and what do I let go. Sometimes I didn’t have enough food, so I’ve had to use the food bank quite often,” she says. Munro, who has lived in Lindsay for 26 years, says basic income has had a “tremendous impact” on her life. “I’m now able to pay my rent and bills in full, and on time.”

I apologize but sometimes I need to shake my head: "There are certainly many who would prefer to live poorly, as long as they do not have to get up in the morning and do any work." No people do not prefer to live poorly even at the expense of getting up in the morning and doing work. People prefer to live richly at least in emotional sense. Poor people do not enjoy having bill collectors on the phone and landlords at the door.

3 - It will increase inflation

It will increase demand, and thereby in some cases prices, for the types of goods people will suddenly be able to purchase.

Response:

Munro says it used to be “so hard” to take care of all the bills, from hydro to heat. She would have to make arrangements to pay small amounts and then it was difficult to catch up.
This was also the first year she was able to buy Christmas gifts for her children and grandchildren in recent memory.
“And when I shop for groceries, now I can buy fresh produce for the first time. I’m still cheap when I shop, but it’s nice to have a few more options,” she says.

People who talk about thinks like inflation or supply and demand curves annoy me because they often only have a rudimentary concept of economics. To start with people define (incorrectly) that inflation is caused by too many dollars chasing too few goods. In reality inflation is a function of full employment. There is an almost infinite amount of goods available in contrast to the increase of available money. People only need so much toilet paper (heat and hydro). While in most cases people will go for better ("I can buy fresh produce for the first time") people also move more and more into investment (" I still have some money in my bank account").

4 - It's hard to pay for it.

There is no response for this mainly because it is a question of choices.

The government pilot wants to test how a basic income might help people living on low incomes better meet their basic needs, while hoping to see improvements in:
food security
stress and anxiety
mental health
health and healthcare usage
housing stability
education and training
employment and labour market participation

Right now the Canadian government spends multiple billions of dollars on various departments which are self perpetuating and ever increasing but questionable in nature. The ministry of Canadian Heritage is one of those areas. The question should be what is more important ... allocating money to promoting sports (I am singling out this expenditure for any reason other than it is the least politically sensitive one) or ensuring that each person in Canada receives $1 per month which could be used to buy a coffee. Some people chose to support the Olympics but I prefer the coffee.