Benefits of the UBI Beyond the Obvious

So the process and obvious benefits of the universal basic income have been well detailed already.

(I have pulled sources from both the left and right to show this is something that can appeal to the concerns of both sides).

A single plan to eliminate the corruption of the IRS, the problems of taxation, and completely reform welfare

In our Hands: A Plan to Replace the Welfare State by Charles Murray (free pdf of the book on AEI.org)

Three Reasons for Universal Basic Income

Experts Think UBI Is the Solution to Automation. This Year, We’ll Find Out.

The case for a universal basic income

Universal Basic Income: Pilot Programs

What happens if you replace every social program with a universal basic income

And the basic argument against them boils down to “if you give everyone a minimum income they won’t because they’ll have all their basic needs covered.” This is a really stupid argument for two reasons. The first being that most people through the myriad of welfare systems out there can earn $25,000-$50,000 a year if you know how to bilk all the systems for assistance out there. Removing all those programs and offering everyone only $12,000 a year is hardly offering people more of an incentive to be lazy, quite the opposite in fact.  It’s providing them the bare minimum needed to survive and giving them the agency to spend it in the way they see best rather than the way a government bureacracy sees best. Further, getting those full benefits actually takes time, so we’ve now freed up people’s time to actually search for a job, and removed all the disincentives to work that current welfare programs have. So while everyone will have a basic income guaranteed to make sure they can meet the bare bones necessities of life, they’re not going to be provided with any comfort. In fact, this will likely, just in the replacement of Medicaid, Medicare, Welfare, Unemployment Insurance, SNAP, TANF and Social Security save $600,000,000 to 1 Trillion dollars off the federal budget right off the top.

But there are other advantages to the UBI that many people haven’t considered.

As the UBI will replace Social Security as the fixed income of senior citizens, the Social Security fund will have to be just rolled back into the general government fund. With that comes all the assets the Social Security System has invested in. Specifically, about $3 Trillion in US government debt currently held by the Social Security fund (a little over that when you count Medicare and other retirement funds which would be made useless by this)…so that $3 Trillion in US government debt will go back to the US government. For those of you not picking up on what this means, this means the debt will be erased, as we will just owe it to ourselves. That’s a a little over a tenth of all US debt, gone. Completely gone.  Now there is other money in Social Security but I assume much of that will be eaten away in the inevitable transfer from one system to the other (you can’t just switch people who are only on Social Security now to a different program without giving them time to adjust).

So no one is in poverty, we’re spending a trillion less a year, and a good chunck of our debt is gone.

Oh and our interest payments on debt have also been cut. If we were really smart we would use those savings in interest payments to buy back even more debt and further dig our way out of this hole but, we can only hope for so much.

Oh but there’s more. As everyone is now guaranteed a basic level of income, do you know what you don’t need? You don’t need minimum wage.  Minimum wage laws started as a racist way to keep miniorites from competeing for job and continuing because of the dumb comment about needing to provide a living wage certainly doesn’t hold water anymore. Now while not every state will get rid of their minimum wage laws, a good many will. That means that employment will go up in those areas and more people will be willing to take lower wages because, hey, they’re starting off with $1,000 a month. That means people will get experience faster as more people will be employed, which has from there a compounding nature to economic growth from increased employment will be astounding.

And, since farmers are now also getting the rewards of basic income, they will no longer need subsidy programs (they don’t need them now, but this will undercut their last excuse). Not only will this mean we can get rid of one of the most useless expenditures of the federal budget, it also means we don’t need to subsidize corn anymore, which also means we can end the nightmare that is ethanol. This, in turn, will actually drop food prices the world over, and thus that $1,000 a month will actually go even further than you initially thought. And we get to just end the Department of Agriculture and the Farm Credit Administration.

And now that everyone has income coming in they that means job security means a lot less. They can leave a job and still be moderately secure at least for a while even if their income was well above the UBI level. Do you know what this means? It means that while employers can pay less because there is a less of a risk of employing someone, it also means employees have greater freedom to leave at any time. That means employers will have to work harder to keep employees they want to keep. That means one of the primary goals of most unions, protecting employees from abuse, is no longer needed. Yes, unions will still need to be legal, but as they will no longer be a core part of employment in America you certainly won’t need idiotic things line the Department of Labor and the Federal Labor Relations Authority. Plus all those rules from idiots like OSHA can go out the window as employers will be too concerned with keeping employees. Granted there will be some need for the state versions of these institutions, but as the need for them will be so few and far between the federal government need will no longer be there.

And since the UBI comes with a voucher for health insurance (which is the reason why we won’t need Medicaid or Medicare), it also means you won’t need the Department of Health and Human Services…and if you just want to double the voucher for veterans you won’t need the Department of Veterans Affairs either. The fact that there won’t be massive fraud in Medicaid, Medicare, and the VA, not to mention the lack of government pricing, the price of all medical care will drop while quality will go up.

And as you’re giving money people for housing you don’t need to government to run housing, which means you can either sell all that public housing or give it all to the states…it also means you don’t need rent control laws. This, in turn, will actually drop the price of housing for everyone. And the Department of Housing and Urban Development can go to.  So your bills just went down and that $1,000 goes even further.

So, let’s be clear here, we save on yearly costs of entitlement programs, employment goes up, regulation on business goes down, the debt is cut in half and we get rid of the Departments of HUD, HSS, Agriculture, VA, and Labor (plus a lot of other smaller offices)…and all the opposition has is that people will be lazy if you pay them money (even though they can get more right now under the current system it just comes with incentives to not work that the UBI will not have).

Agains some states will not have the brains to implement the needed free market reforms that the UBI allows them to do.  But the thing is that now people aren’t tied to a particular state’s welfare checks and can use their new found monthy check to move to a state that is booming because of the free market expansion.  Yes I know that under the current system of welfare it is possible to move to a different state, but it’s not easy to do….under the UBI it’s very easy, which means people will go where the jobs are and thus brining more economic growth in the long run.

Gratned, there are millions ways the UBI could be screwed up as the devil is always in the details.  This is a system that can only be set up by amending the Constitution, and while most have not gotten as far as those details here are some things it will need to include: the federal government will not be allowed to give any form of entitlement other than the UBI, the UBI should only adjusted for inflation every 15-20 years, any increase in the base amount needs to be accompanied by a tax increase (which is why this works best with a universal flat tax so people can see the immediate effects of a 1% increase in the UBI resulting in a 1% decrease in their take home from their job thus ensuring that few will ever want to use the UBI to enrich themselves beyond the basics).

*I realize that when elimintating these departments there is always one or two offices that will need to remain.  Like getting rid of HHS won’t get rid of the CDC because that is still a fairly important thing, but it can be an executive office as so many things are. When I say get rid of the department in reality that will only translate to getting rid of 80%-90% of each department (except Agriculture, you can fire all of those useless idiots without negative efffects).

Advertisements

Tagged as: , ,

Categorised in: Economy, Political, Welfare

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Copyright © 2015 Elementary Politics and Authors. All Rights Reserved.

Follow me on Twitter

%d bloggers like this: