Tuesday, April 25, 2017

What I don't like in the Ontario Basic Income Pilot

I read about the Pilot here

1. That a person will not be able to retain 100% of what he makes in salaries on top of his universal basic income, biases the pilot in favor of those who argue UBI will diminish the willingness to work.

2. Since the greatest danger for an UBI is that it is set too high from a financial sustainability and incentive distortion point of view… I opine that the pilot instead of around $1,400 per month should pay $1,000 - $1200 (about 50% - max 70% of a 40 hours per week employment at minimum wages).

3. Also given the huge transformational impact of UBI, especially in times when structural unemployment is growing, you do not launch a 3-year pilot. You award the UBI in the pilot for life…