Universal basic income! Is It Needed?
Universal basic income or UBI is needed to ensure our economy still works, say some. The western economies will fail due to lack of consumers or due to paying people to do nothing. It depends who you listen to. No matter what happens your investment property will be affected.
I’ve collected this group of articles to try and cover the arguments for and against a universal basic income. First, what is a universal basic income?
Universal Basic Income: A Definition
Basic income – Wikipedia
A basic income (also called basic income guarantee, Citizen’s Income, unconditional basic income, universal basic income (UBI), or universal demogrant) is a form of social security in which all citizens or residents of a country receive a regular, unconditional sum of money, either from a government or some other public institution, independent of any other income….Instead of having numerous welfare programs, it would simply be one universal unconditional income. Via en.wikipedia.org
Where Does The Idea Of A Universal Basic Income Come From?
For almost all of human history our families and tribes provided a safety net for people who fell on hard times. Note the amazement of a native American when he first saw the “civilized” metropolis of Boston, USA
We knew well what it is to endure physical hardship, but our poor lost nothing of their self-respect and dignity. Our great men not only divided their last kettle of food with a neighbor, but if great grief should come to them, such as the death of child or wife, they would voluntarily give away their few possessions and begin life over again in token of their sorrow. We could not conceive of the extremes of luxury and misery existing thus side by side – From The Deep Woods To Civilisation
But with the breakdown of the extended family unit and the rise in centralised agriculture and industry that safety net has largely fallen to the government to provide. If you’re a property investor you don’t believe the government will provide.
The idea of the universal basic income had a resurgence in the 1960’s. Around that time many indigenous peoples began to have their cultures examined in depth.
Now after the GFC with our economic systems being challenged by robotics and artificial intelligence it’s time has come again.
What Are The Arguments For A Universal Basic Income ?
A promise of equal opportunity
ISER / The Alaska Dividend Program
These economic booms generated considerable wealth, but most of it went to nonresidents and little was left behind to benefit the permanent residents or to build a stable and permanent economic base. The economic structure could be described as colonialism and the economic development pattern as “rape and pillage.” Via alaska.edu
Sound a lot like Australia? We all own our country’s resources. If we are truly a democratic society and believe in equal opportunity we should all benefit.
A property investor understands and wants tenants that can afford to pay rent no matter what.
A truly free labour market
In the USA it is estimated at $500 Billion a year so $33 Billion seems with their GDP of 18569.10 billion US dollars in 2016 and ours in Australia was worth 1204.62 billion US dollars in 2016
Universal Basic Income Will Likely Increase Social Cohesion | HuffPost
Not only did a greater sense of community grow, but the very first thing the village even did was to organize an 18-member committee to mobilize the community and advise residents. This was an immediate effect described in the report as “community mobilization and empowerment.” There were also other notable effects, like a 42 percent drop in crime, huge reductions in child malnutrition and school dropout rates, and a 301 percent increase in self-employment.
It would be one thing if these kinds of effects have only been observed in one place, but the findings have also since been replicated in a more recent series of basic income experiments in India. There in a larger basic income experiment that spanned multiple villages and thousands more people than in Namibia, again a multitude of positive effects were found, including community effects. For example, recipients actually pooled their cash together to make shared community purchases like temple repairs, the formation of credit unions, wedding loan funds, and even TVs everyone could watch. Additionally, separate castes actually began to work together, which was surprising even to them. Via huffingtonpost.com
So less crime more cooperation. What could be wrong with that?
Physical and mental health
THE TOWN WITH NO POVERTY
We found a significant reduction in hospitalization, especially for admissions related to mental health and to accidents and injuries, relative to the matched comparison group. Physician contacts for mental health diagnoses fell relative to the comparison group. A greater proportion of high school students continued on to grade 12. We found no increase in fertility, no increase in family dissolution rates and no improvement in birth outcomes. Our results document the value of health administration data for historical analysis, and demonstrate that a relatively modest GAI (Universal Basic Income) can improve population health suggesting the possibility of health system savings. Via duke.edu
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