Sunday, February 5, 2017

Warning! The redistribution profiteers (RPs) are out to kill the Universal Basic Income (UBI) by making it fail.

If you make the UBI too high, let’s say more than 80 percent of what could be earned in the lowest paying full time employment… you are dooming it to failure.

Please start very low, like 50% of the full time earnings at minimum wages and try to enshrine a maximum, like 80% in some type of locked constitutional arrangement. 

If you allow UBI to become a politicians to citizens issue instead of a citizens to citizens affair you are endangering it.

If you allow UBI to be sold and managed as a poverty reducer instead of as an opportunity enabler, it is doomed. 

If the RPs suggest taking on debt in order to finance UBI (so as to keep the value of their current franchise) it will fail, more sooner than later.

Please: Let us avoid the merchants of poverty

Universal Basic Income is for oiling the social machinery, not for drowning it!

Sunday, January 22, 2017

My Universal Basic Income

A Universal Basic Income is a payment of a certain fixed monthly amount to each citizen without any conditioning.

How did I arrive to be a defender of Universal Basic Income?

Two factors: First, as a Venezuelan I have seen how immense oil revenues received by governments for more than a century now, has not been able to trickle down into a sustainable development of my country. I have also, during the last 15 years, witnessed how the poor in my country received less than 15% of what would have been their per capita share of oil revenues. Consequentially I have come to despise all excessive centralization of any redistributive powers, and foremost all redistribution profiteers.

Second, for a long time I have been concerned about that if we are unable to provide worthy and decent unemployments to those each day more numerous structurally unemployed, these will not allow us employed to work in peace, and social order will implode.

Putting together the need to get rid of redistribution profiteers, and that to adapt to new structural unemployment realities, the Universal Basic Income I propose applies to all citizens of legal working age, and who have not retired and are being benefited from pensions and other schemes.

In other words, the needs of children and the needs of retired seniors need to be satisfied, but not by means of a Universal Basic Income. To do so would cause useless confusion about UBI's goals.

Now, who would be against a Universal Basic Income scheme for those who could, and perhaps should be out working?

For a starter the redistribution profiteers, because it would clearly eat into the political and economical value and power of their franchise.

Then all those who sincerely think they can decide better on what citizens should spend, the ever-present societal besserwissers, and want to make any such payments conditioned.

Then all those who automatically believe such a guaranteed monthly income would seriously reduce the societal will to work, with dangerous consequences.

Then all those who automatically believe such a guaranteed monthly income would be financially, fiscally, unsustainable.

And indeed, even though I am convinced UBI is possibly the most intelligent way to confront current societal challenges, like robots and other similar automation substituting for human work, I am also convinced that if a UBI program is not developed with utter care, discipline and love; and kept solely as a citizen to citizen, and as a this generation to next generation affair, then it could result in a lot of bad.

That mainly because it can so easily be captured by other interests, like those wanting to instigate class-wars.

Make UBI payment too high, and then effectively it could reduce the supply of the work-desire that is needed to pay for it. 

Make UBI payments too high and have them not be 100% funded without new debt, and it will come crashing down on us.

What is my only real concern with UBI? Politicians’ “Vote for me cause I will give you the highest UBI”

In order for politicians and redistribution profiteers meddling with UBI in order to use it for their purposes, there might be a need of a Constitutional Amendment to set up the mechanism and the parameters

PS. This is just temporary. I am just starting to build up this blog. It will also include what I have written before on this issue. Thanks.

Saturday, January 21, 2017

A UBI should never be allowed to reduce, one iota, the will to get out of bed and work or do something useful

A UBI should never be allowed to reduce, one iota, the will to get out of bed and work or do something useful.

If UBI is to compensate for poverty derived from the lack of opportunities to work, then it could be hellish.

If UBI is to enable more to take any opportunities to work or to be otherwise productively engaged, then it could be God-sent. 

That is why I am not in favor of using a negative income tax model to provide a basic income guarantee. With such a scheme, if as an example the basic annual income was set at $18.000 then if someone earns $13.000 from working, a basic income would kick in with $5.000 spread out in equal payments over 12 months. De facto it means that if you stay in bed you can receive $18.000 annually. De facto it means that for the first $13.000 earned you have actually paid yourself.

It is better to pay for instance only $12.000 annual UBI independent of work, so that there is a stimulus to step out of bed in pursuit of any additional $ of income.

How much UBI should be paid to those in working age 16 - retirement? My rule of the thumb, 70% of what one could earn in the current least full-time paying job.

PS. Children, the sick, and the pensioners should have their needs tendered to separately from UBI.