A Universal Basic Income Is Being Considered by Canada's Government
vice.com
vice.com
1. "No one will ever work anymore!"
Really? People do not care about material well-being, leisure goods or the feeling of usefulness? What does it say about our current labor market if, given a poverty line subsistence (!), the majority will choose to forego any superior value good? Maybe that we are forced to work, against our will? Where's freedom in that? If this is the case, we clearly have an economic efficiency problem here and now.
2. "Inflation will eat any gain, prices will skyrocket!"
First, if we consider inflation as "too much money printing", then paying for the subsistence allocation with a variety of cuts and taxes will not trigger inflation. Simple. As for price increases, well we already have something to counter these and it's called the market. As in the price increase signals to actual & would-be producers that there's money to be made by producing more potatoes, lodging, clothes, etc. This is textbook economics.
When there is talk of subsistence allocation (or UBI) too often common sense seems to be left at the door. Something reaaaally irks many people. I cannot help but think of it as irrational.
But I'm ready to be convinced otherwise!
edit: added invitation to discuss...
> 1. "No one will ever work anymore!"
> Really? People do not care about material well-being, leisure goods or the feeling of usefulness? What does it say about our current labor market if, given a poverty line subsistence (!), the majority will choose to forego any superior value good? Maybe that we are forced to work, against our will? Where's freedom in that? If this is the case, we clearly have an economic efficiency problem here and now.
> 2. "Inflation will eat any gain, prices will skyrocket!"
> Simple. As for price increases, well we already have something to counter these and it's called the market. As in the price increase signals to actual & would-be producers that there's money to be made by producing more potatoes, lodging, clothes, etc. This is textbook economics.
bro, are you even Canadian? You never heard of our famous oligopolies?
oligopoly. An oligopoly is a market structure in which there are a few firms producing a product, and they may collude to set a price or output level for the market in order to maximize industry profits1. As a result, price will be higher than the market-clearing price, and output is likely to be lower1
we have them in every major economic sector and their lobbyists have regulatory capture preventing any meaningful reform
But a well thought out subsistence allocation won't just "give" everybody 1000$ per month. The majority of people who continue working may/should end up even. I don't see a paid for scheme altering in major way the oligopolies you are talking about.
And I'm curious, oligopolies in which industries a you thinking about?
many sectors of the economy are just oligopolies or straight up monopoly in some places
Most recent UBI by the federal government resulted in 400 billion in debt for the government. More debt put on the books then virtually all previous prime ministers in history. Tremendous inflation breaking the trend for decades.
In this case, it's an old pre-inflation private member bill with little chance of it being passed.
How many months of UBI will anybody who donated to protesting truckers be penalized for the offense?
https://nationalpost.com/news/politics/even-small-donation-t...
> “Just to be clear, a financial contribution either through a crowdsourced platform or directly, could result in their bank account being frozen?” Conservative MP Philip Lawrence asked Department of Finance Assistant Deputy Minister Isabelle Jacques.
> “Yes,” she replied.
> “They didn’t have to actively be involved in the protest, they didn’t have to be here in Ottawa at one of the blockades?” Lawrence asked.
> “No, not themselves,” she replied.
> “It could be indirectly.”
It is really disgusting. Imagine laws requiring the firing teachers because they choose not buy Israeli shampoo or whatever at home.
https://en.wikipedia.org/wiki/Anti-BDS_laws#Anti-BDS_laws_in...
By all means, do not imagine laws in this case.
Read about a law, a lawsuit, and an amended law that have already been recorded in our history:
https://en.wikipedia.org/wiki/Anti-BDS_laws#Koontz_v._Watson
Kansas lawmakers amended the law so that it no longer applied to individuals like the plaintiff, rendering the case moot, but leaving the underlying constitutional issues unresolved.
> (1) contract-focused laws that condition the receipt of government contracts on an entity certifying that it is not boycotting and will not boycott Israel; and (2) investment-focused laws that mandate public investment funds to divest from entities involved in boycotts of Israel.
Neither of these are bans on "personal boycotts". They are penalizing corporations which boycott Israel.
Politics or deplorable status isn't the problem, it's that out government turned tyrannical.
My sibling worked daily at the vaccination clinic.
I 180º disagreed with the content of the trucker's argument (less so these days). But I fully supported their right to protest, loudly and irritatingly, because someday I'll need to protest loudly and irritatingly for something I care about.
But of course now I won't protest, because I don't want my bank account arbitrarily frozen with no legal basis "voluntarily" by my bank.
And that's just my bank account, not the basic income I rely on for food.
Obviously in the interest of protest you can do something annoying, even at 3am, but you can't do something criminal.
A train horn goes up to 110dB.
If you do something illegal, like blast a train horn enough to potentially cause damage of one kind or another, then you can be arrested.
You have to be careful about the actual charge though, because arresting someone vaguely "for public disturbance on Parliament Hill" eventually gets you arresting people for holding up blank pieces of paper while standing in silence too.
Freezing the bank account of people who hold signs on parliament hill or people who donate to people who hold signs on parliament hill isn't a part of arresting them for doing something illegal.
"You're reliant to pay your bills on a check we send you. We have the leverage to make you homeless if you dissent." This is not s reasonable connection of the dots?
After UBI the funds are coming from the government. The government can use its power to withhold those funds at the source to quell protests.
How is this not a direct 1:1 connection?
But UBI helps a large portion of the population and streamlines a number of social payment programs to reduce overhead.
So I see obvious benefits, but no reason to believe from your comment that this potential drawback would be increased if UBI existed.
Keep in mind that trucking protest was funded by interests in the US [1]. I heavily suspect the recent anti- LGBTQ+ protests were too.
I don't believe they have much to do with Canada, or the interests of regular Canadians.
[1] https://www.pbs.org/newshour/world/how-american-right-wing-f...
It's the fact of the government's action that's in question. If they could do what they did with impunity, imagine what they will do with impunity when if you protest they can turn off the faucet that feeds your family.
I feel exactly the opposite.
The estate of Adolph Hitler could fun a protest against the law limiting hate speech, or the law against murder. If some foreign group pays them, millions will show up, and probably commit crimes and be violent and destroy property while they're at it.
In that case, I want the government to quell such a stupid protest that frankly would make our society worse if the protesters got what they wanted (or, more accurately, got what they were paid to say they wanted, but in fact have no care in the world about).
What the protest is about, and if it is really the view of the general population absolutely makes a difference in how the government should react.
I mean...you're a landlord, and now everyone has $1000 a month more...obviously you are going after some of that...what are people going to do, move? where?
same with Canada's near monopolies on groceries and mobile networks...of course these folks are just going to raise prices to capture the free money, not hard given than there is no real competition to prevent this
> Egger et al. find that there was less than 1% price inflation on average
> Alaska has had a universal basic income via the Alaska Permanent Fund Dividend, which has provided each resident between $500 and $3,000 per year funded by state oil assets, since 1982. Since implementing that program, Alaska has had lower inflation than the rest of the United States
So let me guess, you just "feel like" it will cause inflation and based your opinion on your feels instead of data?
Alaska payments have been about the same for the last 40 years (1-1.5k/yr). This means that payments are going down in real dollars.
For inflation from Alaskan UBI would have to look at the difference before and after it was started in the 1970.
Alaskan UBI is funded by real tax revenue, not printing currency or debt spending.
Alaskan "UBI" is ~$1000/yr, not ~$1000/month, so you would expect the impact to be quite small on overall inflation, even if inflation used up %100 of the UBI
It is revenue but isnt tax revenue.
My point was that it is payed with dollars already in circulation that come out of the pocket for whoever is paying the interest or dividend.
this is starkly different than money which is printed into existence and expands the currency in circulation
Looking more into it the independent author is this person (Joshua Miller)
“Joshua's research focuses on macroeconomic impacts of universal basic income. He also hosts the ThinkCritical Podcast and runs a blog called InTheAggregate. Joshua is a high school senior in New York.”
https://www.ubicenter.org/about/our-team/
Good for him for being a motivated high schooler. However, posting his essay as some kind of authoritative proof with Alaska as a generalizable example is absurd. There’s not enough data for stratification or identifying confounders. Alaska is not a typical American state in any way.
UBI supporters, especially on that website, look like young academics living in wealthy urban areas in England and the US. That’s nice and all but maybe they should get out of their bubble. They’re just a bunch of stereotypes.
> between $500 and $3,000 per year
Which is quite a bit below the figure mentioned in the article (16k-24k CAD per annum).
I think Canada has laws against a landlord doing this type of thing, maybe up to a percentage. Also, Not all landlords are that shitty.
>same with Canada's near monopolies on groceries and mobile networks...of course these folks are just going to raise prices to capture the free money, not hard given than there is no real competition to prevent this
I wonder what the Competition Bureau of Canada would think of those near monopolies raising prices artificially? Unless there is price fixing going on, why would I raise my prices with the other groceries stores? Everyone would see the higher prices and instead shop at my store with normal pricing.
Doesn’t matter. Prices would still go up over time as demand increases while supply stays the same.
You would raise your prices because you see your competitors are raising theirs, and you like money. You can also have more confidence there won't be much blowback if you're not the only one raising prices.
> Everyone would see the higher prices and instead shop at my store with normal pricing.
That kind of logic has demonstrably not kept inflation under control (IIRC, much of the "inflation" over the last few years was businesses raising prices to increase profits, and using "inflation" as an excuse).
It's probably possible to spread out price increases slowly enough that it doesn't tend to hit many people's "switch to competitor" threshold.
Ontario rent increase for 2024 is 2.5%
While Canada’s population has increased considerably in the last 30 years, housing and zoning has quite literally been constrained to accommodate it. Housing is being built, but not nearly at the pace it needs to accommodate growth, hence higher prices.
In in places like Ontario, where there’s more than enough land, you can quite literally see on the map where dense housing developments literally stop at the 407 in Mississauga. On the other side of the highway is farmland. It’s been like that for 25 years now.
I’m not advocating for suburban sprawl, but you would think one would see more dense neighborhoods on the other side of the highway by now.
Every one is additional in practice.
Just look to this Canadian one for example.
TLDR: there are many, many tests and experiments which show this not to be the case, because UBI is about circulating money, not creating new money. Redistributing money from all tax payers evenly across all citizens does not cause inflation. It just stops poverty.
I think what people are getting at is that in Canada there is an artificial limit enforced by government on house production, when vacancy rates are a 1% adding more money but not more housing will cause the price of houses to rise.
Taxes are a stick and their purpose is to guide behavior. If you want higher wages and reinvestment, you tax profits higher. If you want more luxury cars and yachts, you lower taxes on profits.
I used to be pro-UBI, no longer am.
This same line of reasoning could be used to imply that no one should be allowed to be financially independent.