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This week Alex Howlett joins us to talking about Universal Basic Income Alex studies monetary theory and basic income. Basic income is a regular stream of unconditional money that goes to every individual person. His goals are to understand and help others understand the economics of basic income. Links: https://www.greshm.org/ https://www.patreon.com/c/relearningeconomics https://www.patreon.com/c/ProfSteveKeen https://businessfilmbooth.com/
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This week Alex Howlett joins us to talking about Universal Basic Income Alex studies monetary theory and basic income. Basic income is a regular stream of unconditional money that goes to every individual person. His goals are to understand and help others understand the economics of basic income. Links: https://www.greshm.org/ https://www.patreon.com/c/relearningeconomics https://www.patreon.com/c/ProfSteveKeen https://businessfilmbooth.com/
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| This week Alex Howlett joins us to talking about Universal Basic Income Alex studies monetary theory and basic income. Basic income is a regular stream of unconditional money that goes to every individual person. His goals are to understand and help others understand the economics of basic income. Links: https://www.greshm.org/ https://www.patreon.com/c/relearningeconomics https://www.patreon.com/c/ProfSteveKeen https://businessfilmbooth.com/ |
The problem with UBI is that it doesn't eliminate class struggle. Firms can mark up their prices to get a larger share of the income. This will be particularly true if there are monopolies or oligopolies in the supply chains or if the goods and services are inelastic : try reducing spending when the item you are buying is food or water.
But it can give workers more leverage to prevent job precarity.
@@Crisdapari I am thinking in the mid term once we get AGI and advanced robotics, only institutional jobs will remain. Most people will life thanks to a UBI , jobs will be scarce and monopolies and oligopolies will be able to fix prices… not good.
BS
Yes but what do you really think?
What caused these symbols to exit your fingertips?
It is an added layer of money creation. In practice it will distort the already twisted system even more.
It’s a good idea if you want to destroy the fiat system but then what?
Perplexity gives a pretty good answer:
The studies conducted by Ive Marx and the experiments in Namibia, along with other UBI trials, present contrasting results and highlight the complexity of implementing Universal Basic Income. Let's analyze these different outcomes:
## Ive Marx's Study in the Netherlands
Ive Marx's research in the Netherlands yielded cautionary results:
– The study modeled a UBI of €700 ($760 US) per month for adults under 65 and €165 for minors[1].
– While income inequality decreased, poverty increased by 3%[1].
– Approximately 75% of adults aged 18-64 would lose financially, with 30% losing more than 10% of their income[1].
– Marx concluded that UBI is "massively inefficient" for helping the least well-off in society[1].
## Namibia's UBI Experiment
The Namibian experiment in Otjivero village showed markedly different results:
– Each resident received 100 Namibian dollars (about $7 US) per month[3].
– Poverty levels decreased dramatically, from 76% to 37%[3].
– School attendance improved significantly[3].
– Crime rates declined considerably[3].
– Small businesses and entrepreneurship flourished[3].
– Malnutrition decreased, with households able to afford at least two meals per day increasing from 68% to 97%[3].
– School dropout rates fell to almost 0%[3].
– Crime fell by 42%[5].
## Other UBI Experiments
1. Finland:
– Participants reported feeling happier and less stressed[4].
– Trust in social institutions increased[4].
– However, it did not significantly impact employment rates[4].
2. Spain (Barcelona):
– The basic income boosted life satisfaction and mental health[4].
– Employment rates were not significantly affected[4].
3. India:
– Improved sanitation, nutrition, and school attendance were observed[4].
4. Japan:
– Recipients showed 3.9 times more interest in launching new businesses[4].
– Divorce rates decreased from 1.5% to 0.6%[4].
– Over 70% of recipients reported a significant increase in happiness[4].
## Analysis and Conclusion
The stark contrast between Ive Marx's study and the results from Namibia and other experiments can be attributed to several factors:
1. **Context**: The economic and social contexts of developed countries like the Netherlands differ significantly from developing nations like Namibia. In poorer countries, even a small amount of guaranteed income can have a transformative effect on living standards.
2. **Implementation Scale**: Marx's study was a large-scale simulation, while many other experiments were smaller, controlled trials. The broader economic impacts of a nationwide UBI might differ from localized experiments.
3. **Amount and Design**: The amount and design of UBI vary across studies. Marx's model involved higher payments but also significant changes to the existing welfare system, potentially explaining the negative outcomes for some groups.
4. **Duration**: Short-term experiments may not capture the long-term economic and behavioral changes that could occur with a permanent UBI.
5. **Measurement Focus**: While Marx's study focused primarily on financial outcomes, other experiments measured a broader range of social and well-being indicators.
In conclusion, the effectiveness of UBI appears to be highly dependent on the specific context, design, and implementation. While it shows promise in alleviating poverty and improving well-being in certain settings, particularly in developing countries, its implementation in more complex, developed economies may require careful consideration to avoid unintended negative consequences. The contrasting results underscore the need for comprehensive, long-term studies that account for various economic and social factors before implementing UBI on a large scale.
Citations:
[1] https://www.acton.org/publications/transatlantic/2020/04/17/marx-vs-universal-basic-income
[2] https://docs.iza.org/dp15952.pdf
[3] https://ubiadvocates.org/all-about-namibias-universal-basic-experiments/
[4] https://www.vox.com/future-perfect/2020/2/19/21112570/universal-basic-income-ubi-map
[5] https://basicincome.org/news/2020/07/namibia-ubi-success-and-institutional-failure/
[6] https://basicincome.org/bien/pdf/munich2012/haarmann.pdf
https://www.youtube.com/watch?v=CDwbygJMEyw
Giving away currency only leads to providing a false price signal to the open market and prices all rise as a result. There are stories for thousands of years proving this.
The game of Monopoly only works if you keep passing GO and collecting $200.
Let's test and see in a region, a city or something. All debates are in the air without real world data.
It has been, both in Canada and the US. It failed both times.
theres already been over 192 of them take your pick
@@chadcadsonvii5258 "both times" you have no idea what you're talking about or how many have been done
The bit at the start where whoever he is is talking about "whats politically viable" and the average "self interested" voter as distinct from "someone witha heart". is completely unsupported by data or rigorous argumentation. Why do people think they can just guess/assume what is politically viable, popular etc? There's data out there.
You have heard of opinions right? This isn’t newsnight.
i find myself more confused about steve keens position now than before it sounded in the beginning that he was for a subsistence level ubi and then by the end it sounds like he is just for some version of unemployment benefits
Yea me too! I think they were not talking the same terms. Guaranteed income is a welfare state term. Different thing to a UBI.
If it's a job, it's not guaranteed, it's conditional on performance, punctuality, behaviour, etc. If it's guaranteed it's not a job, it's adult day care.
"Job guarantee" doesn't mean any of that, smart one 😂
Would have liked to hear more from Alex and less from The Usual Suspects.
Government BS jobs are a form of ubi it's just not universal.
We live in a world we're can't even stop petty crime and people think UDI will change the world😅😂
Naw naw… I want my dividend from my country, I'm due my share of our collective wealth. They work for us.