UBI - can it work
Switzerland is going to the polls on 5 June to decide on whether to adopt a Universal Basic Income. Can this work? If you read about the Swiss proposal, you will find that it hasn't been well thought through.
However: remember those SF shows you watched, when in the future we would all be relieved from drudgery but somehow not be poor? Ever thought about the economics of that?
What if you had a tax/welfare system that paid everyone a UBI? You would then no longer need to have a minimum wage as a social safety net. Indeed, a social safety net funded out of the community (i.e. UBI) with removal of market-distorting welfare mechanisms like the minimum wage could finally achieve a social outcome while removing the distortions blocking market efficiency.
Theoreticians have long accepted that the investment and consumption decisions are separate. By separating social welfare from value creation, perhaps we can achieve a more creative, efficient and productive economy.
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