Basic Income = velocity of money
The idea of a universal basic income (UBI) unites a strange mix of people. “We should explore ideas like universal basic income to give everyone a cushion to try new things,” Facebook boss Mark Zuckerberg said in a speech at Harvard University in May. “And yes, giving everyone the freedom to pursue purpose isn’t free. People …
Friday 17th November 2017 22:17 GMT MachDiamond
Citizens of Saudi Arabia get a cut of the country's oil revenue. That was fine and grand until the bottom dropped out of oil prices. They have a very large swath of people that live on money from the government and have very few skills otherwise.
What UBI will do is let more employers pay minimum wage. Where employees were getting £400/week, new hires will start at £300/week. That's great for Zuckerberg and Musk. Elon built an auto manufacturing plant in an area with some of the highest cost of living figures in the US and Zuckerberg operates a company that produces nothing.
People that slept through math and economics will see UBI as a boost in income, but will be blind to the tax increases that will shortly follow to gobble up that money. The people that educate themselves and work hard to earn a good salary will start re-locating to the first country that creates a low-tax environment for more than the very wealthy. Lots of Soviets were more than willing to get the hell out of the USSR and didn't care what country crest was stamped on the front of their new passport. This is the same as raising the minimum wage artificially until robot burger flippers and ordering kiosks become very cheap in comparison to low skill labor.
Saturday 18th November 2017 19:52 GMT Charles 9
Re: Saudi Arabia
"This is the same as raising the minimum wage artificially until robot burger flippers and ordering kiosks become very cheap in comparison to low skill labor."
But what about positions like caregivers and so on that still require the human touch due to Uncanny Valley concerns? Not to mention skills like plumbing that still require too much dexterity for a machine to replicate?
Monday 20th November 2017 11:31 GMT Seajay#
Re: Saudi Arabia
This is the same as raising the minimum wage artificially until robot burger flippers and ordering kiosks become very cheap in comparison to low skill labor.
This is the exact opposite of that surely? You just said a few lines higher up that this will let companies pay low-skilled employees less. If this policy means that their total income in unchanged but they are more likely to be employed because less of that money has to come from their employer, that's.. well it's not great because they're still flipping burgers but it's fine, it's better than the alternative.