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The economic impact of economic crises is unclear to many. Ideas like UBI are often touted as the savior. Rodrik's trilemma is a great tool to better understand the trade-offs, and why #UBI might not be the best for people in the long run. THREAD
2/ Rodrik's trilemma suggests that when economic conditions detoriorate, at least one of three things will suffer: GLOBALIZATION, STATE or DEMOCRACY. What does it mean when each of these suffers, or is completely eliminated?
3/ Slight reduction of GLOBALIZATION might mean increased prices for goods, especially imported ones. A complete crash of global supply chains could lead to food shortages and even famine, even in developed, Western nations.
4/ Weakening of the STATE may result in weaker government services, such as lack of police service, or closed schools. Complete loss of state essentially means anarchy (making a gun a good investment).
5/ Loss of some DEMOCRACY may result in banning political parties, limited freedom of speech or political indoctrination. Complete loss of democracy leads to totalitarianism and, among other things, the government dictating where people live (to the address), where people work...
6/ ...and what private property they're allowed to own. Organizations like IMF work hard to ensure the global financial system is running, protecting globalization. And politicians protect the state, leaving the people to protect democracy. Conflicts may result in protests...
7/ ...and their outcome decides which component is weakened. So how does this relate to #UBI or the great #reset? Since WEF and IMF are working with the governments, an economic crisis may trigger loss of democracy and with that, private property rights. That's one reason for...
8/ ...WEF messaging "you'll own nothing and you'll be happy." Does #UBI help? In fact UBI is a good first step in government control because once yo
u depend on the government for basic necessities it may be difficult to refuse a job at the military or the surveillance unit...
u depend on the government for basic necessities it may be difficult to refuse a job at the military or the surveillance unit...
9/ ...if that means loss of UBI, especially if you're unemployed otherwise. Similarly there may be relocation requirements attached to further gover
nment money, typically related to a central economic plan by the government. Precedents include apartments being decided for...
nment money, typically related to a central economic plan by the government. Precedents include apartments being decided for...
10/ ...families and individuals e.g. in former East Germany. WEF and IMF may or may not have predicted COVID but the massive amount of global debt ensures there will be a significant economic crisis sooner or later, and it is important that we as citizens understand the...
11/ ...trade-offs between different policies. In the end, we need a solid, well-functioning economy, and we should be asking ourselves which policies facilitate this the best. History has shown that heavy government control and central planning hinder prosperity. END
