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How to make Universal Basic Income (UBI) work?
(a short thread)
(a short thread)
1/ UBI is the idea that all humans deserve a basic income just for existing.
It’s getting popular over time because today, thanks to tech-based productivity gains, we have enough resources in the world to provide adequate nutrition and other basic necessities.
It’s getting popular over time because today, thanks to tech-based productivity gains, we have enough resources in the world to provide adequate nutrition and other basic necessities.
2/ This situation is special because we didn’t have that luxury in history.
So if we can, why shouldn’t we alleviate preventable suffering in the world?
So if we can, why shouldn’t we alleviate preventable suffering in the world?
3/ Some issues directly leap to mind.
What about inflation?
Well, you can provide income in terms of inflation-indexed purchasing power, and not in terms of rupees or dollars.
What about inflation?
Well, you can provide income in terms of inflation-indexed purchasing power, and not in terms of rupees or dollars.
4/ The concerns around inflation also miss the simple fact that most of the basic commodities have been getting cheaper over time (in real prices).
We grow more food than ever, shoes are cheaper to manufacture and even pharmaceuticals have become cheaper thanks to tech progress
We grow more food than ever, shoes are cheaper to manufacture and even pharmaceuticals have become cheaper thanks to tech progress
5/ So if everyone has an additional income, prices of basic commodities will not rise.
Demand-driven hyperinflation is close to impossible in a world where tech and profit motive exists.
Demand-driven hyperinflation is close to impossible in a world where tech and profit motive exists.
6/ What if people become lazy?
Have you ever seen a millionaire entrepreneur or a lawyer become lazy? Humans are progress-oriented creatures and even with basic income in hand, people will still want to work hard to earn even more money.
Have you ever seen a millionaire entrepreneur or a lawyer become lazy? Humans are progress-oriented creatures and even with basic income in hand, people will still want to work hard to earn even more money.
7/ But we already give subsidies?
Subsidies assume the govt knows what people want.
People are different and they want to make choices that make most sense to them. It may be a better idea to eliminate or reduce subsidies and give them money directly.
Subsidies assume the govt knows what people want.
People are different and they want to make choices that make most sense to them. It may be a better idea to eliminate or reduce subsidies and give them money directly.
8/ What will UBI achieve?
- It’ll help people escape the poverty trap much faster. Even today, such opportunities exist but they take generations in a family. What if within a single generation, people who’re secure about their basic needs, leapfrog in their income?
- It’ll help people escape the poverty trap much faster. Even today, such opportunities exist but they take generations in a family. What if within a single generation, people who’re secure about their basic needs, leapfrog in their income?
9/ - It will increase innovation
As labor prices will rise, there will be a pressure on removing menial jobs and hence people will have a better standard of life.
As labor prices will rise, there will be a pressure on removing menial jobs and hence people will have a better standard of life.
10/
- It will unlock human potential
There may be several Steve Jobs or Einsteins in countries like India. Today, we can afford to cheaply meet their basic needs so that they can dedicate their labor to what they were meant to do, what they are skilled to do.
- It will unlock human potential
There may be several Steve Jobs or Einsteins in countries like India. Today, we can afford to cheaply meet their basic needs so that they can dedicate their labor to what they were meant to do, what they are skilled to do.
11/ Why give money to already rich?
UBI can be given as a negative tax. Only the people who have low incomes get such money.
UBI can be given as a negative tax. Only the people who have low incomes get such money.
12/ There are several studies that have shown the effectiveness of UBI in various trials.
This is encouraging and we need to accelerate implementation of it in India and other countries
https://www.mckinsey.com/industries/public-and-social-sector/our-insights/an-experiment-to-inform-universal-basic-income#
This is encouraging and we need to accelerate implementation of it in India and other countries
https://www.mckinsey.com/industries/public-and-social-sector/our-insights/an-experiment-to-inform-universal-basic-income#
14/ That’s it!
Hope you liked the thread.
If you have any views supporting or against UBI, let me know.
Hope you liked the thread.
If you have any views supporting or against UBI, let me know.
15/ Once introduced, what if people keep increasing UBI?
People can do that today too, but after a point it hurts everyone. Democracies depend on debates
Populist movements and revolutions happen when progress halts.
UBI is supposed to accelerate progress and reduce discontent
People can do that today too, but after a point it hurts everyone. Democracies depend on debates
Populist movements and revolutions happen when progress halts.
UBI is supposed to accelerate progress and reduce discontent
