My thoughts on a Universal Income.
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Recently I have had a conversation with one of our other Steemians regarding welfare and a Universal Income. So I figured I'd give my opinions and thoughts. I promise I'll try to not rant too much on this.
So what is a Universal Income?
The idea says that every single person in the country should be given a livable pension so that they don't need to worry about working and limit poverty.
In an ideal world, this is an AWESOME idea. There will be no kids living on the street, old ladies wont be eat cat food for dinner and people will get to spend quality time with their families instead of stressing about work if hey can't find a job.
But this isn't an ideal world, ESPECIALLY in Australia. Its well known that Australians are bone lazy, and people flock to our shores from other countries to get in on our gravy train. Australians have an attitude of "She'll be right".
So if i don't think it'll work, how could I make it viable?
So as I mentioned before, I think a Universal Income is a good idea but I think it won't work. But if I was to instate one tomorrow here's how I'd do it.
ALL pensions and allowances would be gone. Everyone would be equal, there would be no differentiation between old, young, disabled or workers.
All rebates, allowances, discounts etc would be abandoned.
Personal Income Tax would be cut drastically, this would encourage people to thrive. They have the backing to take a risk and succeed.
What flow on effect would happen?
If the government stopped subsidizing and giving rebates on things, companies would revert to true costs. Lets look at Childcare. The government is providing 50% rebate to childcare, so the centers have abilities to increase prices knowing that the government will pick up the tab.
This will also allow wages to be reduced, a family can afford to accept a much lower paying job knowing that they have a livable pension in the background. This would reduce the burden on companies, who could then afford to hire more people.
What do I think will actually happen?
Now this is the real world, this stuff would be unlikely to actually happen. No costs would be reduced, wages would end up increasing as more people would move OUT of the workforce so companies would need to offer more money to attract them. People would take the easy lifestyle.
The people that were already in dire situations such as the drug addicts and homeless would use the free money to support their habits and cause a bigger drain on the system.
In a Utopian society, or a society that takes pride in their ethic, I think a Universal Income would work. But in Australia i seriously think it would be a massive failure. Theory and economic desire sadly doesn't correlate to human psychology and down right greed.
The day they bring in UBI in Australia will be the day I leave the country. Communism doesn't work. Never has, never will.
What does UBI have to do with communism? Why couldn't a nation maintain a democratic governance system, and instate UBI through publicly funded means? This wouldn't affect private property ownership (other than an increased ability to afford housing, which I would be interested to learn how that could affect housing/rental markets), so why even bring up communism?
It seems to me that it all comes down to the fear of corporate flight from high taxes. My feeling on that if the only reason a company is located in your area is low taxes, then they shouldn't be there.
The biggest issue of UBI is where is the money coming from? I mean we, Australia, struggle to pay now for the services required to run a fully functioning country. I personally, like you, have no real problem with UBI but I just don't understand how it could be financially achievable.
On the flip side, I don't understand how we will be able to survive without it when most of our jobs will be gone to robots. I don't think the government nor the general population realise how quickly this is becoming a reality.
Coming from the US myself - I'll point out that we all know that there is plenty of money in our rich countries to fund programs to provide for the basic needs of our citizens. Most people in first world countries live lifestyles that are unsustainably lavish, and taxation of luxury goods and supporting more economically efficient cultural practices would provide plenty of revenue. We all know the money is out there, and it shouldn't be difficult to provide a small basic stipend to citizens. It's mainly a problem of inequity in political power for low and average income people. Monied interests control the agendas of most governments, and if the majority of citizen's needs were given fair attention, it would not be so difficult to achieve social welfare programs. I feel it also is an issue of apathy. If civic duty were taken more seriously, and average people used their collective influence properly in a representative democracy, policies such as UBI would not be so far fetched, in my opinion.
Somewhat agree but even if it's there that still doesn't answer my question of where it will come from. I have little to no faith in our politicians but in order to fund a UBI, the books would need to be rebalanced and if it came, at say, by doubling the income tax I most certainly wouldn't be for it. However, if it was achieved by forcing multi-national corporations to pay their fair share of tax, yes apple I am looking at you (only paying 1% in Australia), then sure I am all for it.
However what I see in most countries now is a massive shortfall, just look at the US debt, it's staggering to the point that some commentators are claiming it's not far away from a collapse. IIn order for UBI to be initiated, it would take a YUGE shift in how the US operates and spends it's money... YUGE!
Absolutely agree. That's essential that the U.S. government does massive audits. I think that public apathy breeds a political climate that encourages actions that produce politically expedient results that waste enormous amounts of money. I think this is widely found from both parties in the U.S. Government - the military industrial complex, lack of cost controls in the U.S. healthcare system to appease pharmaceutical corporate lobbyists, etc. On the local level in NY state for example, the NYC subway has been lead to financial ruin due to the transfer of transit allocated funds for other politically expedient uses. Common people need to participate in government in at least small ways (voting is a good start), in order for good (let alone efficient) government to exist.
To try and answer the question of where the money comes from though - taxation coupled with attempts to controls costs, and efficiency of government process and allocation. Especially for the U.S., we are talking about slashing taxes during a moment when we are so deeply entrenched in global military operations that it is staggering. I believe during the 1940's through the 1960's the U.S. taxed income over $3 Million at 94%. That was a time of incredible growth. Considering how much the U.S. has in debt, let alone the fact we are in perpetual war time, it seems astoundingly irresponsible that we do not have Post WW2 type taxation in place. Such a taxation scheme would ideally be in place to help fund the ideal social services that are usually discussed, including UBI, but it is essential that costs are controlled - the healthcare industry is exhibit A of this. The housing sector is the next obvious place to consider because it is the most obvious fundamental expense that UBI would be used for.
I wrote about the introduction of a universal income some months ago on facebook. What I suggested was that everyone above the age of 18 gets let's say $400 per week. When that person is working they earn $700 per week. The universal income gets deducted from their wage. Their take-home wage will be $300 although they will still be getting the original $400 as their universal income.
In the Northern Territory and some other locations where there is a high number of people on some sort of benefit, the Commonwealth pays a percentage of their benefit into a basic card--for food etc. If the individual is unable to manage their money it could be up to 100% on the basic card.
I do believe in the Utopian society. There will always be the people who have the drive to succeed. If we do not start expressing where we would like to be over time, the system will fall into disarray. There has been a great deal of thought into the Venus Project. A link is provided. https://www.thevenusproject.com/
8 ) infinity happiness
The technology seed accelerator Y Combinator started a universal basic income research project test a few weeks ago in Oakland with cash handouts. It seems a useful way to begin deciding whether UBI will achieve its so-called objectives or not. See here:
https://basicincome.ycr.org/our-plan/
lol
This idea sounds awesome. I hope people should test this on regular basis in small areas. So, the best could be applied universally.
Fingers crossed.
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It's something I've been giving a lot of thought to, after its success in some of the Nordic countries.
The PTB would never allow this. They thrive on being at a higher level than the citizens.
I have nominated you for a photo challenge :) I figured it would be great to showcase you crafts as well :) https://steemit.com/photography/@arbitrarykitten/7-day-black-and-white-photo-challenge-day-3
Universal income sounds similar to some of the benefits in that states that was intended to aid the poor, but ended up enabling them to stay there. It’s a slippery slip that reminds me of the fish parable. Give a man a fish he eats for a day. Teach a man to fish he eats for a life time. What will be taught by universal income?
Great share my friend!
Why can't we also teach all citizens to "fish" as well? Shouldn't universal education also be part of the equation? Ultimately, basic financial instability derails people of any background, whether the poverty is inherited from your background, or through a sudden triggered event. It seems to me that the concept of UBI is worthwhile regardless. Could be wrong, certainly.