[HN Gopher] Basic Income Pilot Project: Study results
       ___________________________________________________________________
        
       Basic Income Pilot Project: Study results
        
       Author : 3Vbgx5ro
       Score  : 165 points
       Date   : 2025-04-09 19:37 UTC (3 hours ago)
        
 (HTM) web link (www.pilotprojekt-grundeinkommen.de)
 (TXT) w3m dump (www.pilotprojekt-grundeinkommen.de)
        
       | karol wrote:
       | Who in their right mind wants that? UBI just means signing your
       | soul away to the state, who then can mandate your lifestyle
       | completely including health procedures and even military
       | conscription. No thanks.
        
         | AIorNot wrote:
         | Why if the state provides a basic safety net should that
         | preclude individual ambition?
         | 
         | Should we not move toward a society that can not go hungry?
        
           | dimitrios1 wrote:
           | The false dichotomy is that you need big government to have a
           | society that does not go hungry.
        
         | MarcelOlsz wrote:
         | During COVID, my friends and I were temporarily retired.
         | Lamenting every moment since having to come out of retirement.
         | We were all laid off and received about $2k/mo for awhile and
         | what happened was we ended up hanging out every since day
         | working on whatever we were working on, and feelings of
         | inadequacy faded into the background. It was a micro golden age
         | for us and that period of time has cemented UBI for us. It was
         | a small amount of money and we lived with our parents but we
         | were never more productive and happy.
         | 
         | Hopefully before I die I can witness a strong implementation of
         | UBI. It would directly reflect in culture in terms of music and
         | the arts. Little funding for the arts currently combined with
         | massive rent nearly everywhere leaves little room for cultural
         | phenomenon that was possible in places like the lower east side
         | bowery for example. Or arts funding in the USSR and other
         | soviet bloc countries.
         | 
         | Time is more valuable than anything else.
        
           | isaacremuant wrote:
           | You were the beneficiary of a bullshit short term policy that
           | has wrecked the global and national economies and think that
           | means it was a good thing to replicate?
           | 
           | Your fun time was extremely damaging to people everywhere but
           | of course, we can pretend "it was necessary because COVID"
           | which we then knew and now it's undeniable, was an absolute
           | farce of hygiene theater.
           | 
           | The people who worked paid for you to do nothing at your
           | parents home. That's all there is. Meanwhile, there also were
           | massive transfers of wealth with the same excuse, from tax
           | payers to the wealthies company owners.
        
           | mantas wrote:
           | > Or arts funding in the USSR and other soviet bloc
           | countries.
           | 
           | This is pretty good example why UBI is dangerous. Those
           | funded artists were very happy to suck it up and go along
           | with the regime. The censorship was in place, but self-
           | censorship was even stronger.
           | 
           | Meanwhile a lot of art existed outside of the system with
           | people working some shitty jobs and doing arts in free time.
        
             | Palomides wrote:
             | ok, then look at the depression era US federal arts project
        
           | conductr wrote:
           | East side bowery was very cheap back then (it was also a
           | pretty rough part of town, which is easy to forget). You just
           | need to convince a hoard of like minded folks to congregate
           | somewhere cheap and you can live like this. There's plenty of
           | cheap places to live in the US. I kind of feel like we need
           | to learn how to build new cities, we have the land, it's
           | mostly cheap, we just continue to choose to reside in
           | expensive places chasing jobs that help us cover the rent
           | while working us to death.
        
             | throwaway743 wrote:
             | Idk man, I wouldn't call bowery rough or cheap by any
             | stretch - 20 years ago, during covid, or now. For rough
             | during covid or now, head to east new york. For cheap, head
             | deeper into the other boroughs.
        
           | nradov wrote:
           | As a taxpayer this kind of nonsense fantasy is exactly why I
           | would never vote for UBI.
        
         | bigyabai wrote:
         | > who then can mandate your lifestyle completely including
         | health procedures and even military conscription. No thanks.
         | 
         | Entirely unlike modern America, where utility providers for
         | food and water are regulated for what's healthy and
         | representative legislature decides when to draft you for
         | Vietnam 2.
        
         | dsr_ wrote:
         | Military conscription has always been the role of the state.
         | 
         | In the US, health procedures are currently in the hands of
         | oligarchical profit-maximizing middlemen; the first
         | assassination has already happened.
         | 
         | I really don't know what your objection is to improving
         | people's lives.
        
         | _ink_ wrote:
         | How so? Universal Basic Income means, you get it no matter
         | what. So if they require you to serve to get money, that's no
         | UBI.
        
           | netsharc wrote:
           | I remember reading about how the US military is a socialist
           | society. Housing, income, free education, free healthcare for
           | life...
           | 
           | Funny how the biggest part of the US budget is funding that.
        
             | metabagel wrote:
             | Particularly if you live overseas on base. The military
             | provides everything for you, albeit often through vendors
             | such as AAFES. But yeah, free healthcare for sure.
             | 
             | https://www.aafes.com/exchange-stores/
        
             | dgfitz wrote:
             | None of it is free, what are you talking about? It is very
             | much earned.
             | 
             | Free means you didn't do anything to get something.
             | 
             | Ever been shot at before?
        
         | miketery wrote:
         | I'm surprised by the down votes. Possibly you could have made
         | your point better, there are pros and cons.
         | 
         | "A government big enough to give you everything you want is a
         | government big enough to take from you everything you have."
        
           | fwip wrote:
           | [flagged]
        
           | toomuchtodo wrote:
           | I trust a functioning government over free market human
           | participants. People always overweight their own ability to
           | succeed, when the stats tell a different story.
           | 
           | How are the governments and economies in the happiest
           | countries structured, for example.
        
           | anonzzzies wrote:
           | > ... to take from you everything you have."
           | 
           | Nothing to do with UBI; the gov of the country you live in
           | can do that period. Really no clue what it has to do with
           | UBI.
        
           | dang wrote:
           | (I think it was probably downvoted because it was too far
           | over the line into ideological battle and other things that
           | the site guidelines ask commenters to avoid here.)
           | 
           | https://news.ycombinator.com/newsguidelines.html
        
           | surgical_fire wrote:
           | This is still a shit argument.
           | 
           | Most people have nothing in the current system.
        
         | GuinansEyebrows wrote:
         | You have most of these limitations imposed on you as market
         | effects anyways. You're no freer than you would be with UBI.
        
         | nelsonfigueroa wrote:
         | > Who in their right mind wants that?
         | 
         | Those living in poverty. Speaking from personal experience.
         | 
         | > UBI just means signing your soul away to the state, who then
         | can mandate your lifestyle completely including health
         | procedures and even military conscription.
         | 
         | The state can already do this without UBI.
         | 
         | Not saying UBI is flawless though.
        
         | rsoto2 wrote:
         | lol the state(aka society's strong arm) will always have an
         | immense say in your life even if you are so oblivious to it.
         | Government exists to redistribute money, might as well
         | distribute it to the poor and do it universally.
         | 
         | This study didn't say, we gave 1200 to people and then dictated
         | their lives like a dictator.
        
           | isaacremuant wrote:
           | > Government exists to redistribute money
           | 
           | Citation needed. Authoritarians always love to go dismiss
           | anyone who doesn't just take anything they're given.
        
             | unethical_ban wrote:
             | Citation: All modern society and the last 1000 years.
             | 
             | >Governments don't exist to redistribute money
             | 
             | Citation needed.
        
               | foobarchu wrote:
               | >Government exists to redistribute money
               | 
               | Citation needed
               | 
               | It works both ways.
        
             | ryoshoe wrote:
             | Taxes are a form of wealth redistribution, and all
             | governments require a revenue stream
        
         | oulipo wrote:
         | I don't think you understand what UBI means... it's just a
         | stipend to replace some other welfare programs, and given to
         | everybody. It doesn't mean you don't work and earn a salary in
         | addition to that
        
         | FranzFerdiNaN wrote:
         | I agree. Much better to die because a free market health
         | insurer denied your operation because it rather kept the money
         | it would cost.
        
         | ozmodiar wrote:
         | The state gets more power over you without UBI (assuming a
         | social safety net of any kind already exists) - without UBI it
         | needs a larger apparatus to decide how to distribute funds, and
         | it can pick arbitrary reasons to cut off your funds. Under UBI
         | administration would be far simpler and cutting off your income
         | for political reasons would be far more noticeable, since it's
         | supposed to be universal.
        
         | nottorp wrote:
         | "Universal" basic income.
         | 
         | "Universal" health care.
         | 
         | What the word in quotes means is they're unconditional.
        
         | osmsucks wrote:
         | You're right. Better to sell your soul away to a corporation
         | that can fire you at will.
        
         | surgical_fire wrote:
         | > Who in their right mind wants that?
         | 
         | Anyone that is repulsed by a system that requires an underclass
         | of desperate people for it to work.
         | 
         | > UBI just means signing your soul away to the state
         | 
         | As opposed to sign your soul away to corporations instead?
        
         | stackedinserter wrote:
         | I don't understand why you're downvoted. I grew up in a country
         | that did exactly this, until collapsed. Strong social nets,
         | free housing, free medicine for all, free education, no
         | unemployment, sounds like heaven, right?
         | 
         | The only problem is that every person is a government-owned
         | livestock unit. Their thoughts, knowledge, career paths, kids,
         | even their private life, everything is controlled by
         | government, that also obligates you to watch after your
         | neighbours and co-workers. You can't even leave the country
         | without government permission. You can expelled if you don't
         | like the government though. You can't work where you want after
         | getting your degree, government will send you where they think
         | they need you to be. School is never ending propaganda. We
         | literally had "political information" every Monday, since grade
         | 1. Also, since grade 1 you're in one of the tiers of the only
         | allowed political party of the country. There's tier for grade
         | 1 to 3, then for 4 to 8, then from 8 to 10. Every 18yo is
         | drafted for 2 years for armed forces (3 for navy). I can go on
         | and on.
         | 
         | I remember it too well and would never trade messy and chaotic
         | capitalist society to that labour camp with "free" rations.
         | 
         | It's frightening that so many people in 1st world want to live
         | in a cage with 3-times-a-day meal.
        
       | HPsquared wrote:
       | This kind of thing pops up now and again but the psychology is
       | completely different to if basic income was actually universal
       | and expected to continue in the long-term.
       | 
       | Of course people don't quit their jobs and careers because they
       | are part of a small group enrolled in a 3-year scientific study.
       | Human behaviour is non-linear.
       | 
       | The study doesn't cover the likely feedback effects on the
       | broader economy that a universal rollout would have (increase in
       | the money supply) or the broader socio-cultural changes that
       | would likely accompany it.
       | 
       | In short: scale matters for this kind of thing. Some things just
       | can't be tested ahead of time empirically.
        
         | bravura wrote:
         | Quantity has a quality all of its own.
        
         | missedthecue wrote:
         | yeah, there are basically three questions people have for UBI.
         | 
         | 1. Does it cause inflation
         | 
         | 2. What is the impact on employment/productivity
         | 
         | 3. Can we afford to tax ourselves to pay ourselves in a way
         | that makes sense?
         | 
         | These studies answer none of these.
        
           | xvedejas wrote:
           | I'm personally most worried about increases in general income
           | levels being soaked up by real estate holders. It's what
           | we've seen happen in the SF bay area rents in response to
           | tech fortunes. I don't see UBI actually increasing welfare
           | much without a tax on land value to make landholding less
           | profitable and redirecting the value of land into the UBI
           | fund.
        
             | gnfedhjmm2 wrote:
             | "Based on nothing I disagree"
        
             | mediaman wrote:
             | This only seems to be an issue if the marginal cost of
             | building is too high to expand supply, though, right?
             | Otherwise if people have more money, they bid up housing,
             | then new stuff gets built, and supply profits decline.
             | 
             | Of course, restricting supply is a problem. I also think
             | this logic might break down in tightly restricted areas
             | that are already vertically built out - Manhattan, for
             | example, because costs per housing unit tend to follow a U
             | curve with respect to height, where they decline with
             | density but start increasing again at very high density,
             | but that's not an issue in most places.
        
             | mgfist wrote:
             | This can broadly be alleviated by regulations that make it
             | far cheaper and easier to build.
             | 
             | Currently, demand is the only access by which housing
             | markets are dictated in heavily NIMBY areas like SF. Supply
             | is an underused level due to cost and permitting issues.
        
             | serviceberry wrote:
             | I don't think capital has any special attachment to real
             | estate specifically. It's just that we have policies that
             | essentially _require_ your money to be invested into
             | something (because inflation); and we turned real estate
             | into a safe investment asset through policies that create
             | perpetual scarcity.
             | 
             | You can probably come up with policies that penalize real
             | estate investments, but (a) it will just cause the
             | investors to chase some other asset class, instead of
             | redistributing wealth; (b) unless scarcity is addressed,
             | it's unlikely that housing prices are going to drop.
             | Landlords extract profits from the assets they hold, but
             | they don't cause there to be fewer homes or apartments
             | available.
        
               | schmidtleonard wrote:
               | Why wouldn't they? It's an easy and profitable way to
               | pump their property values. Obviously they make an
               | exception when they stand to profit, but I invite you to
               | attend any county zoning meeting ever if you think this
               | doesn't happen. The meetings are nothing _but_ catfights
               | of this exact description.
               | 
               | I've always marveled at how it's 100% accepted to talk
               | about poor people employing six dimensional chess and
               | dubious strategies to scrape undeserved pennies from the
               | system, but it's somehow unthinkable to even so much as
               | contemplate the possibility that rich people are pulling
               | obvious levers to extract millions. The double standard
               | is absolutely wild.
        
               | numpad0 wrote:
               | Rent is charged monthly, and everyone consumes the value
               | at the exact same pacing of 1/30th the rent per day.
               | Consumers has no leverages, save for weak protections
               | that won't be statistically significant, against price
               | hikes. I think it's reasonable to assune it's more
               | efficient at capturing UBI than regular commodities that
               | can be rationed or splurged on.
        
             | sdsd wrote:
             | Wouldn't reducing the profitability of landholding via
             | taxation discourage the creation of apartment buildings,
             | thus reducing the supply of housing and making it more
             | expensive?
        
               | ipsento606 wrote:
               | Georgists want building apartment buildings to be
               | profitable based on the value of the building, not the
               | land.
               | 
               | The idea would be that holding land becomes less
               | profitable, but buying land for development becomes
               | cheaper.
        
               | schmidtleonard wrote:
               | It would make land cheaper and improve the profitability
               | of doing the conversion. Paying people to sit on land is
               | hilariously inefficient. Welfare for the rich.
        
             | HenryBemis wrote:
             | The human nature. The moment UBI is set at X amount, the
             | cheapest rents will jump, so will the price of a coffee, of
             | a burger & fries in a fast-food, etc.
             | 
             | Greed will take over and try to get the _most_ out of the
             | UBI as if we/you/they owe it to those people.
        
             | parpfish wrote:
             | as long as we're floating what-ifs...
             | 
             | what if UBI led people to think "i can go live wherever i
             | want, regardless of job/market conditions"?
             | 
             | herds of young idealists and artist-types deciding to take
             | over cheap realestate in rust-belt towns and rural areas
             | because they no longer need to be next to a big urban
             | center to 'make it'.
             | 
             | we started to see this during covid WFH, but true UBI would
             | be even bigger
        
             | chgs wrote:
             | Fund a UBI from a land value tax. The more land rents
             | increase the higher the UBI
        
               | s1artibartfast wrote:
               | Land tax is one of the least ethical forms of taxation.
               | It would be far better to fund it with income, sales, or
               | capital gains taxes.
        
           | oulipo wrote:
           | Well the study at least answers your second point, it shows
           | that people are enjoying their work more, and that they
           | change jobs more often (ie take more risks) and stay as
           | employed as before
           | 
           | and #3 at least as already been well modelled economically,
           | UBI replaces many other welfare programs, so we can
           | definitely afford it
        
             | DennisP wrote:
             | And #3 implies that it's not going to cause inflation, any
             | more than those other welfare programs do now.
             | 
             | In general, as long as we're funding it with taxes instead
             | of by printing money, it's not going to cause any extra
             | inflation.
        
             | TeMPOraL wrote:
             | > _Well the study at least answers your second point, it
             | shows that people are enjoying their work more, and that
             | they change jobs more often (ie take more risks) and stay
             | as employed as before_
             | 
             | As GGP said, this doesn't compare. There's even nothing
             | magically non-linear about it: people stay employed,
             | because they know the UBI study will only last a few years,
             | after which they'll need to get back to normal. It makes no
             | sense to interrupt your career for it, as the "hole in your
             | CV" will just turn into a severe and compounding
             | disadvantage in lost years and experience.
        
               | HenryBemis wrote:
               | It's not just that. I fear tha UBI will be 'frozen in
               | time', so let's say it's something insanely generous, EUR
               | 5000 per month. After that happens, every month we will
               | have a record inflation, and soon enough the EUR 5000
               | will rent you Harry Potter's staircase-'flat' and 3
               | pizzas.
               | 
               | The only way I see this being sustainable is get as far
               | as possible from the big cities, buy a tiny piece of
               | land, by a durable tiny home, buy solar panels, get a
               | tablet with all Gutenberg books, and find a soulmate that
               | will follow you to that journey.
               | 
               | No kids, no private schools, no parties, no nothing.
               | Everything will be swallowed by inflation.
        
               | TeMPOraL wrote:
               | Yup, I 100% agree. This is my worry too. And it goes
               | beyond real estate market and landlords - they are the
               | obvious infinitely deep money sinkholes of society, but
               | even if housing magically became free and available to
               | everyone, I believe the sudden inflation would happen
               | anyway.
               | 
               | I believe this to be a fundamental feature of _free
               | market economy in general_. It 's something I started
               | realizing many years ago, and thought about a lot ever
               | since; in the last year, I distilled that belief into a
               | concise phrase I now use for this:
               | 
               |  _The market constantly adjusts to keep the average
               | disposable income to zero._
               | 
               | Except now I realized that "average" is the wrong measure
               | here, I should be saying "median", and also I've been
               | mistakenly using the term "disposable income" (which
               | actually means just after-tax income) to refer to
               | "discretionary income" (what you're left with after
               | covering taxes, bills, and essentials). Which leads me to
               | the New and Better, Updated, Version 2.0 of my economic
               | theory:
               | 
               |  _The market constantly adjusts to keep median
               | discretionary income near zero._
               | 
               | I'd imagine this is an obvious thing that's already been
               | named 100 years ago, but so far my research only pointed
               | me to things like "neutrality of money", and some
               | specific examples of my statement holding, yet nothing
               | that covers it entirely.
               | 
               | (EDIT: in the unlikely case I'm not an idiot, and that
               | this phrasing was not used/named before, I welcome
               | credit; inquiries from the Nobel Foundation should be
               | directed to my e-mail address, which is in my profile.)
        
             | jay_kyburz wrote:
             | If somebody offered me 1200 GBP a month, tax free, no
             | strings attached, guaranteed for the rest of my life, there
             | is no way I would continue working for somebody else. I
             | would tinker around with open source and pet projects for
             | the rest of my life.
             | 
             | That's almost twice the aged pension here in Australia.
             | (550 GBP)
             | 
             | I guess I would also need some iron clad guarantee that the
             | cost of living would not skyrocket.
        
           | jsdwarf wrote:
           | You could study various subsidy regimes during the COVID-19
           | pandemic to answer this question. Some regimes subsidized
           | resouces like energy, whereas other regimes provided
           | something like an universal basic income (ubi) to small
           | businesses/freelancers who were unable to serve their
           | customers during lockdown. Austria was on the ubi side and we
           | had huge problems with Inflation afterwards
        
           | lawlessone wrote:
           | >1. Does it cause inflation
           | 
           | Our current system has inflation baked in, so im not sure how
           | big an issue it is, so much as how much inflation?
        
           | benmoose wrote:
           | We need to get serious about wealth taxes. The amount of
           | money locked up in assets and land is staggering and has been
           | under taxed for far too long.
        
             | y-curious wrote:
             | I agree with the sentiment, but it matters very much how
             | it's implemented. You would need to find a way to keep the
             | money in your country, while also taxing more. It's
             | actually very complicated, but yes, I agree with the
             | notion.
        
             | HPsquared wrote:
             | Said assets and land are already being used though. It's
             | just a case of people wanting to "redistribute" them.
        
           | some1else wrote:
           | My questions are more along the lines of:                 -
           | Does it liberate people from meaningless employment?       -
           | Does it give a sufficient platform to people to bootstrap
           | their own trade?       - Does it give people the runway for
           | meaningful creation / artistic self-actualization?
        
           | buu700 wrote:
           | Agreed. It's better than no data, but I don't really see what
           | a study like this can hope to prove one way or another.
           | Giving a handful of people free money isn't UBI any more than
           | the lottery is UBI. It doesn't provide any information about
           | the macroeconomic effects of an actual universal income, or
           | about how a lifetime guarantee of continued payments would
           | impact behavior.
           | 
           | Personally, I think the necessity and viability of UBI will
           | become apparent sooner than most would expect. If AI and
           | related fields continue to advance at their current pace, at
           | some point we'll be able to observe a clear trend toward an
           | eventual government budget surplus paired with a mass
           | unemployment crisis. Implementing a UBI or similar measure
           | during that transitional period will be the only way to avoid
           | a lot of unnecessary pain and societal upheaval.
           | 
           | This won't cause excess inflation because the payments will
           | be backed by real economic output; the payments will only
           | serve to keep demand in line with supply. Eventually, we'll
           | get to the point where a UBI with annual raises and a
           | balanced budget can coexist. A pessimistic outlook would be
           | that this heralds the end of human innovation and ingenuity;
           | I personally predict that it kicks off a renaissance of
           | entrepreneurship, invention, and scientific breakthroughs
           | that at least matches the relative progress of the 20th
           | century.
        
         | numpad0 wrote:
         | will it become a capped negative sales tax, in a way? I don't
         | see how amount of currency smaller than individual UBI amount
         | make tangible sense under its presence.
        
         | rsoto2 wrote:
         | It's funny, people like you will say a study is too small and
         | focused to be worthwhile.
         | 
         | But then we have the case of Alaska, an entire state receiving
         | a yearly stipend(basic income). And the same type of people
         | will say well it's too broad you can't possibly pinpoint any
         | direct effects. https://www.ktoo.org/2015/02/20/alaska-tops-
         | gallups-index-we...
         | 
         | Science is not made for perfection and many studies are _not
         | possible_ it doesn't mean there's nothing useful to gain from
         | it for policy makers. It's also simpler to study smaller groups
         | than effects on entire countries.
        
           | exe34 wrote:
           | > "It's awesome! I wasn't even aware that we were even close
           | to being number 1, so seeing that was really nice to know,"
           | Brown said
           | 
           | It seems to have come as a shock to a lot of them to find out
           | they were so happy.
        
           | floxy wrote:
           | Alaska Permanent Fund Dividend for 2024: $1,702, or
           | $141.83/month
           | 
           | https://pfd.alaska.gov/
        
         | oulipo wrote:
         | Perhaps, but they have actual arguments for their claim, and
         | you have just hypotheses. Scientific studies like those are the
         | best approximation we can have to a full rollout. So perhaps
         | results won't be exactly the same with a full rollout, but at
         | least they have already taken out the "people will just behave
         | nonsensically / be worse off" hypotheses
        
         | James_K wrote:
         | > the likely feedback effects on the broader economy that a
         | universal rollout would have
         | 
         | It's interesting to describe as "likely" something for which
         | there is no evidence. This is an actively anti-science belief.
         | It seems to me as if you really don't like the idea of UBI and
         | so are saying that, if it actually happened, the effect would
         | be the opposite of what experimental data shows. This is pretty
         | clearly biased.
         | 
         | > (increase in the money supply)
         | 
         | There is no effect on money supply if this is funded through
         | taxes.
         | 
         | > Some things just can't be tested ahead of time empirically.
         | 
         | You can gradually expand the pool of people receiving UBI to
         | see how these effects scale. Begin in one city, then increase
         | to a larger region, then do it nationally.
        
           | gmoot wrote:
           | > There is no effect on money supply if this is funded
           | through taxes
           | 
           | Of course there is. Suppose we tax Elon several billion
           | dollars. Now, instead of sitting in his money vault, it flows
           | into the economy where it increases demand pressure.
        
             | James_K wrote:
             | He doesn't have a money vault. He has almost zero cash
             | holdings. If you tax him, then he will have to sell assets
             | to pay for those taxes, which removes money from the
             | economy as that money was being actively spent on his
             | assets. The only situation when money supply changes is if
             | someone has a literal mattress full of cash hidden away.
             | Even if you just have money in a savings account, it acts
             | as a fractional reserve for the banking system meaning that
             | there is a net decrease in money supply when you give it to
             | the government as banks can no longer use it as the backing
             | for loans.
        
         | dalmo3 wrote:
         | This is the UBI experiment I want to see:
         | 
         | The government creates a new currency called $UBI, with the
         | same legal tender status as the official currency for that
         | country ($FIAT). I.e. people can use it to pay taxes, and
         | people are required to accept it when doing commerce. Both
         | currencies exist in parallel.
         | 
         | In the true spirit of ubi, everyone is entitled to an equal
         | amount of it, and no one should be worse off by it. So they
         | need to issue the currency new currency to give away.
         | 
         | They set up a system so everyone gets the same amount of money,
         | at the same time, for maximum fairness. Everyone's income just
         | goes up, equally.
         | 
         | $UBI officially has 1:1 parity to $FIAT, and this parity is
         | used to calculate how much they'll need to "print" out at a
         | given month. Let's say it's living_wage*population_size. That
         | amount can be adjusted once a year by factoring in the
         | government reserves built up exclusively from tax returns. In
         | other words, the monetary base is a known, deterministic
         | quantity.
         | 
         | They allow free exchange between $FIAT and $UBI, but the
         | government does not officially exchanges it. They also allow
         | people to set prices to their products and services freely.
        
           | stevage wrote:
           | What is the benefit of all this extra complexity?
        
         | mrangle wrote:
         | That's right. Community wide Universal Basic Income would cause
         | price rises for shelf goods, negating the intended beneficial
         | effect.
         | 
         | As the value of money is always relative to its scarcity. More
         | money held by all individuals always leads to higher prices,
         | because it leads to money being worth less. Life only becomes
         | less expensive when making more money than others. This is a
         | basic dynamic of how money works, at its most fundamental
         | level.
         | 
         | Society would need price controls to stop shelf prices from
         | rising, and to maintain the beneficial effect of UBI (being
         | able to afford more goods). At that point shortages are
         | incoming, and UBI income functionally transforms from money to
         | credits for goods. Even if it is still called money. Credits
         | implies a limit on how much goods people are allotted, even if
         | given credits / money to redeem said allotment. The government
         | needs to decide how much in goods each individual is allotted.
         | 
         | This is where it gets bad. Communist propaganda practice is to
         | promise that the communist society will allot a maximum amount
         | goods per person out of its GDP, implying an evenly distributed
         | yet relatively well off populace. Visualize a pie that is cut
         | in large slices and completely distributed.
         | 
         | The rub is that the government gets to keep any part of the pie
         | that is not distributed, and so its incentive is to distribute
         | the least amount of the pie and the smallest slices. Which is
         | what we see in practice. People given the minimum of their
         | collective production value to sustain their existence. With
         | the government hoarding the rest. Slaves in all but name.
         | 
         | The government now has a taste of control over wealth
         | distribution for part of its GDP, which it enacts via
         | entitlement over some production value of work and private
         | business. Whatever production value is left for the private
         | sector economy is now tempting for the government to also take
         | over and minimally distribute in the same manner, because again
         | the government gets to keep much of the money. Private business
         | and employment begin to become dirty words.
         | 
         | We live in a World that is dominated by the fundamental nature
         | of money, some would call it a fallen world. Making a low
         | amount of money feels like a slave's existence.
         | 
         | However, at least in a free market economy there is a type of
         | escape hatch from that existence should someone figure out how
         | to provide society with relatively more value than others.
         | Whereas in a socialist society, that escape hatch tends to
         | legally close as the years tick by and the personal allotment
         | of goods declines.
        
           | stevage wrote:
           | > That's right. Community wide Universal Basic Income would
           | cause price rises for shelf goods, negating the intended
           | beneficial effect.
           | 
           | If that were true, supermarkets in wealthy areas would be
           | much more expensive than in poor areas, but they aren't.
           | 
           | No one likes overpaying for groceries, and a modest
           | government income isn't going to change that.
        
             | lr4444lr wrote:
             | Supermarkets in poor areas get reliable cash flow from EBT
             | - it is arguably UBI in action. Its patrons tend to have
             | lower rates of vehicle ownership and free time to seek
             | better priced alternatives.
        
         | yorwba wrote:
         | > Of course people don't quit their jobs and careers because
         | they are part of a small group enrolled in a 3-year scientific
         | study.
         | 
         | Except the study did show people quitting their jobs at a
         | higher rate. But they mostly switched to new jobs instead of
         | becoming unemployed. Of course people given the choice between
         | working less or making more money usually choose the money.
         | People who choose otherwise are already part-
         | timing/episodically employed/on unemployment benefits/getting
         | subsidized by their family.
         | 
         | Presumably there's a level of UBI where most people wouldn't
         | see the need to work anymore, but if they quit permanently,
         | this will reduce the supply of goods, increasing prices and
         | limiting how much UBI can buy, to the point where people are
         | incentivized to start working again. So it's a self-regulating
         | system. Of course it would be less disruptive to start with a
         | very low UBI that gradually increases, instead of starting high
         | and letting inflation sort out the rest.
        
           | spidersenses wrote:
           | >Of course it would be less disruptive to start with a very
           | low UBI that gradually increases
           | 
           | This is a very good point that I haven't even heard made by
           | proponents of this idea before. Thanks!
        
           | SoftTalker wrote:
           | You could argue it's a self-regulating system as well with
           | UBI at zero.
        
           | meinersbur wrote:
           | It also matters what jobs they change to.
           | 
           | There is a documentary out there showing someone who could
           | quit their regular job and become an artist thanks to an UBI
           | pilot (Canada IIRC). It is presented as a positive example in
           | that they did not become lazy, but just work something
           | different and still make revenue close to what they earned on
           | their job by selling art.
           | 
           | How many people will become artists with UBI introduced
           | nationally? Who is going to buy all that art?
        
             | ForHackernews wrote:
             | Who cares if anyone buys the art? In a world with basic
             | income where people didn't have to worry about survival
             | wages, people could make art just because they were moved
             | to make art.
        
               | unclad5968 wrote:
               | And where will the money for UBI come from when everyone
               | quits their job for non-income generating hobbies?
        
               | ForHackernews wrote:
               | Tax the AI companies? Their bots are built on the
               | plundered wealth of all mankind and that wealth belongs
               | to the commonweal by right.
               | 
               | It's funny that this board can easily imagine AI
               | destroying humanity but can't imagine a world where it
               | enables them to quit their job.
        
               | bko wrote:
               | I don't know, they went from productive work (someone
               | paying them to do it) to unproductive work.
               | 
               | This is the old Keynesian argument I never bought that
               | you can pay people to dig ditches and fill them back in
               | and it would stimulate the economy.
        
               | h2zizzle wrote:
               | "still make revenue close to what they earned on their
               | job by selling art."
               | 
               | Read more closely.
        
           | Izikiel43 wrote:
           | > Except the study did show people quitting their jobs at a
           | higher rate. But they mostly switched to new jobs instead of
           | becoming unemployed.
           | 
           | Didn't something similar happened during Covid due to
           | stimulus checks? People were confident on applying for new
           | jobs since they had the stimulus check as a backup.
        
           | pj_mukh wrote:
           | I think the nuance here is that the income in Universal Basic
           | Income is a stand-in for "everyone's basic needs should be
           | met". But income doesn't guarantee that, because prices go up
           | and down for a variety of reasons.
           | 
           | What people _actually_ want is Universal Basic Buying Power.
           | I should be able to get a roof over my head, get food and an
           | education. It sucks that it 's this complicated but in terms
           | of government policy sometimes UBI is cash handouts, other
           | times it should be supply-side investments, and as the
           | original commenter laid out, none of these research
           | experiments are running that experiment.
        
             | h2zizzle wrote:
             | I mean, even that's something of a misconception. Let's
             | start with an axiom: there are enough people and resources,
             | both locally and universally, to provide every human being
             | with enough to eat every day and a safe place to sleep
             | every night (acts of God notwithstanding). That's an
             | objective truth; technologically and logistically, we are
             | there as a civilization. So a _guarantee of access to
             | something that already exists_ is a matter of policy, not
             | economy. The doomsayers are just wrong on this one, unless
             | the first act of UBI recipients would be to burn farms,
             | blow up the rail network, and release pests into vacant
             | housing, or something (though I don 't doubt that this
             | scenario is precisely what they expect; after so many
             | studies, it's safe to call anti-UBI rhetoric a
             | rationalization of unsubstantiated class hysteria).
        
         | potato3732842 wrote:
         | > but the psychology is completely different to if basic income
         | was actually universal and expected to continue in the long-
         | term.
         | 
         | Would it though? Do people really trust their governments that
         | much?
         | 
         | Poor people who this would be most applicable to tend to deal
         | with the government a lot more than UBI proponents so their
         | trust levels are probably different.
        
           | stevage wrote:
           | > Do people really trust their governments that much?
           | 
           | In Europe? Yeah. Safety nets are not suddenly taken away.
        
             | potato3732842 wrote:
             | Social security wasn't taken away and probably never will
             | be. How's it doing? What's it's 30yr outlook? You don't
             | need to just trust that the program will exist, but that it
             | will be useful on a timeline long enough that you can
             | eschew investing in skills that make money. How many greeks
             | do you think would trust their government to do that? What
             | about the brits?
             | 
             | But of course policy minutia that can make or break
             | programs are unimportant compared to cheap internet
             | comments.
        
               | TuringNYC wrote:
               | >> Social security wasn't taken away and probably never
               | will be.
               | 
               | In the US, the "trick" is usually just to extend the age
               | at which you get social security. Life expectancy is not
               | universally equal, they vary widely based on gender,
               | race, economics. For some subsets of our population
               | Social security has essentially be eliminated for half
               | the cohort because it starts past the average life
               | expectancy.
               | 
               | (to be clear, I think this is atrocious)
        
         | grafmax wrote:
         | The money supply argument seems flawed to me. As long as poorer
         | people gain a larger _share_ of the money supply, their
         | increased spending power would outpace inflation. That's
         | because inflation is a function of the money supply in total,
         | not the money supply of those with lower income.
        
       | pizzafeelsright wrote:
       | We already have UBI.
       | 
       | Social security disability, TSA, Federal and State Workers in
       | education and "general services".
        
         | rsoto2 wrote:
         | No we do not. None of those are UBI and are not universally
         | distributed.
        
         | rsoto2 wrote:
         | We don't even have single payer healthcare my dawg. The "u" in
         | ubi is for universal.
        
         | jghn wrote:
         | TSA, and to a large extent the US Military as well, is just a
         | jobs program that avoids triggering the median American's
         | aversion to "socialism".
         | 
         | The others that you mentioned aren't this.
         | 
         | And the point of "U" is "Universal", which isn't at all what
         | you said.
        
         | Cthulhu_ wrote:
         | Those are federal services, that's not the same as UBI. The
         | premise of UBI (in my limited understanding of it) is that,
         | especially in more socialist countries, you can get rid of a
         | lot of programs that support the poor / sick / etc in favor of
         | a system where everyone gets the same amount, and the
         | bureaucratic systems in place that check to make sure people
         | are entitled to these benefits can be dissolved.
         | 
         | For example, I live in the Netherlands which according to
         | Americans is a really socialist country; if you lose your job
         | from getting fired, you are entitled to unemployment benefits.
         | However, only if you prove you are actively looking for a
         | different job, if you don't or can't prove that, you get
         | shorted.
         | 
         | There's the dole (bijstand), but a lot of counties put a lot of
         | conditions on there; some even told people to grab some tools
         | and get to work on maintaining the public spaces as part of
         | keeping their benefits. Which is employment, which should mean
         | they get a contract and wage, worker's rights, etc.
        
       | James_K wrote:
       | I feel as though this study is only addressing the bottom
       | percentile of questions about UBI, the kind of complaints from
       | people who think "those lazy poors shouldn't be given money". I
       | think most people are able to understand that, yes, people's
       | lives improve when you give them more money. My real questions
       | are macroeconomic. Does UBI create a Keynesian stimulus effect on
       | the economy, or is it primarily inflationary? What is the saving
       | on means testing benefits? How does tax law need to be adjusted
       | to ensure proper dispersal of funds?
       | 
       | Edit: I should emphasis that these questions come from a place of
       | genuine curiosity, rather than simply throwing things up to get
       | in the way of a policy being implemented. I believe larger trials
       | are required to gather better data, with a view towards expanding
       | the pool of recipients.
        
       | throwaway48476 wrote:
       | Redistribute policies only work in countries with high social
       | trust. There's a strong correlation between social trust and
       | wealth inequality.
        
         | HPsquared wrote:
         | Pretty much any policy can work (to some extent, for a while)
         | in a society with sufficiently high social trust. But that
         | trust is not static and can be built or depleted over time by
         | those same policies.
        
       | chris_va wrote:
       | This really does not seem like a balanced take, e.g. it does not
       | address the main question of inflation destroying whatever value
       | might be created.
       | 
       | If we redistribute money (which is a proxy for scarcity) to a
       | small number of people, it is hard to observe the aggregate
       | effect on the rest of the economy. If we redistribute money to
       | everyone, we reduce the value (e.g. velocity of money increases
       | without a commensurate change in economic output), so there would
       | be massive inflation. It's possible that the _continual_ massive
       | inflation will cost less than the stability created by UBI, and
       | it 's possible it could be the extreme opposite. So, it would be
       | a Grand Experiment, like Communism, and like all grand
       | experiments it could end very poorly, and these studies do
       | nothing to address that.
        
         | grafmax wrote:
         | As long as lower economic strata gain an increased portion of
         | the money supply, they ought to be able to purchase more than
         | they did before, even after inflation. At a high level
         | inflation is a function of the money supply not the money
         | supply of the lower strata.
        
         | James_K wrote:
         | It can be done on the scale of a city or region within a
         | country. The idea it would have an inflationary effect is
         | somewhat misguided. There are only so many goods available in
         | the economy, and redistributing money can't decrease that. Your
         | real wealth, that is the quantity of goods and services you
         | have access to, will go up if you are below the mean, and down
         | if you are above it, under a scheme of redistribution. The
         | inflationary effect is actually a desired result, as it will
         | increase the economic incentive to produce goods appealing to
         | people on the lower end of the income scale. In the long term,
         | you should expect a real terms decrease in the price of
         | essential goods and an increase in the price of luxury goods as
         | the spending power of the rich falls in comparison to the
         | middle and lower classes. You can see the precise opposite of
         | this at play currently. Rising inequality, the exact opposite
         | of redistribution, has driven massive increases in the
         | production of luxury goods and simultaneous inflation and
         | decreases in the production of essential goods.
         | 
         | TL;DR A free market serves the consumers with money, and
         | redistributing money re-balances the market towards serving a
         | certain group of people. I believe a downwards redistribution
         | would be favourable to the present upwards one.
        
       | markus_zhang wrote:
       | I always think, instead of UBI in $$, UBI in items is a lot
       | better. This alters the social-economic reality more dramatically
       | than UBI in $$ but I think it is a better option.
       | 
       | So basically, instead of throwing a bunch of $$ to everyone every
       | month and hopefully inflation doesn't happen, give everyone a
       | basic condo with a reasonable number of electrical appliances in
       | an UBI apartment (being UBI doesn't mean low quality, it should
       | mean reasonably good quality but without those fancy stuffs),
       | send everyone food package every week, free library card, free
       | online university admission (they don't have to take them if they
       | don't want to), etc., and maybe a bit of $$ just for
       | entertainment and such.
       | 
       | However, I think it's more important to help people to find
       | meanings in their life. If I get UBI but feel lost, how do I find
       | a sense of belonging? How do I find meaning in my life? Sure, if
       | I'm smart or if I'm affluent, I might get into some really
       | meaningful and well paid jobs, but UBI does not magically give
       | people more job, it merely gives them more time to figure out --
       | and a life of time is not enough without guidance and help.
       | 
       | To help people find belongings and feel "being useful", the
       | government can also encourage volunteering, mass infrastructure
       | maintenance projects, and promote many other activities, so
       | people can earn some pay, learn some skills AND find meaning in
       | their life.
        
         | zawaideh wrote:
         | I've had a similar line of thought.. basically what you are
         | proposing is sort of a voucher system. But, here is where my
         | mind went, what if it is implemented as a bunch of tokens
         | issued via a blockchain or even through a central authority.
         | They can be freely traded if needed and prices can go up and
         | down, but regardless of the price, there is a set number of
         | them that get issued.
         | 
         | Similarly, you can get issued tokens/rewards for doing needed
         | work.
         | 
         | I've wanted to spend more time thinking through this more
         | thoroughly and flesh out the idea more.. without ever having
         | the chance to
        
           | em-bee wrote:
           | that sounds like it's just a different currency. so then we
           | have to deal with two kinds of currency. i don't think that
           | is beneficial.
        
         | serviceberry wrote:
         | Governments try stuff like that pretty regularly (you can only
         | buy certain things with food stamps, etc), but it's typically
         | expensive to administer and inherently prone to abuse. Buy
         | groceries with food stamps, sell groceries, buy drugs. On top
         | of that, it's just inherently difficult to structure this in a
         | way that's fair and useful to every person. If I inherited or
         | built myself a nice rural home, I don't want a government-issue
         | apartment - either instead or in addition to what I have. Do I
         | get nothing? That's unfair. Do I get the stuff I don't want?
         | 
         | "Lump sum in cash" is the most flexible and equitable system.
         | But then - and that's a major problem with UBI - you end up
         | with people who spend it irresponsibly and then need help to
         | survive. So you end up with UBI in addition to all the existing
         | social safety nets.
        
           | em-bee wrote:
           | also dietary needs and preferences. it's way do complicated.
           | it adds a burden not only to the administration but also to
           | those who sell the goods and services received.
           | 
           | another problem is that if i earn extra money i can't combine
           | it with the basic income to eg afford a better apartment.
           | everyone would be stuck with the apartment given.
           | 
           |  _you end up with people who spend it irresponsibly and then
           | need help to survive. So you end up with UBI in addition to
           | all the existing social safety nets._
           | 
           | i don't believe that. if you spend your income irresponsibly
           | you are out of luck. change your habits. wait until the next
           | payment and do better. if you can't do that then a social
           | worker will help you.
        
           | throwaway743 wrote:
           | While cash like UBI offers flexibility, criticizing targeted
           | aid like food stamps misses the point. These programs are
           | essential safety nets for the most vulnerable. While some
           | misuse might occur - often signaling deeper needs requiring
           | more services, not less food - focusing on that minority
           | ignores the vast majority who rely on this aid to simply
           | survive.
           | 
           | Suggesting it's "unfair" if you don't need specific help
           | ignores the purpose of a safety net. How a society supports
           | those facing hardship is a measure of its character. Worrying
           | about potential misuse at the lowest rungs seems
           | disproportionate when compared to massive government spending
           | elsewhere. Ultimately, denying essential aid based on
           | assumptions about how a few might misuse it is
           | counterproductive and lacks compassion.
        
           | markus_zhang wrote:
           | Yeah I agree there are a lot of problems in this kind of
           | schemes. I don't have answers for any of them, because giving
           | a concrete answer to any of these questions probably leads to
           | more questions.
           | 
           | You can still have some $$ in that package, so it's not
           | entirely out of flexibility. I also guess people who receives
           | food packages, as you said, may be willing to exchange for
           | other stuffs. TBH the most important reason I pick provisions
           | (with a bit of $$) over 100% $$ is because of the scale.
        
           | teamonkey wrote:
           | All sorts of benefits get scrutiny along the lines of "what
           | if _they_ spend it in ways _I_ disapprove of?" Inherent in
           | UBI is the notion of increased personal freedom.
           | 
           | The study showed that people used the money in unusual ways,
           | spreading it around and sharing it, usually in ways that
           | benefited the economy, but would not be allowed by a more
           | heavily-regulated system like food stamps.
        
         | itishappy wrote:
         | What am I going to do with a second home?
         | 
         | I see where your head's at, but I think a huge portion of the
         | reason for using dollars is that it's simple and easy to
         | manage. You don't need to find suppliers, manage inventory,
         | match individuals with housing, or audit for fairness.
         | Potentially more importantly, you don't need to pay for those
         | activities either!
        
           | markus_zhang wrote:
           | Yeah, but I think with a government-initiated program, it's
           | going to be a lot cheaper because of the scale. It definitely
           | doesn't solve the problem of corruption or other political
           | issues, but hopefully UBI creates better citizens (for a
           | start, now whoever wants to participate in politics have the
           | time to do more research and participate more) so that those
           | issues get called out.
        
         | mppm wrote:
         | This is basically the communist vision (in its original,
         | positive sense) -- Universal Basic Provisioning achieved
         | through automation and a moderate amount of community service.
         | People are always quick to point out how governments will
         | inevitably screw this up, likely making things even worse than
         | they are now, but I think the idea has merit at least in
         | principle. _Unlike_ the idea of Universal Basic _Income_. Free
         | markets and free money just don 't go together. Especially if
         | this money is given to the "productive underlayer" of society
         | rather than investment bankers. That will just collapse the
         | house of cards from the inside out. Administrators, middle
         | managers and VPs of sales do not a functioning economy make.
        
           | markus_zhang wrote:
           | I agree that historically such movements always ended up
           | badly, e.g. Russia and China. I'd argue that Russia and China
           | picked Socialism not because they had abundance of materials,
           | but on the contrary, because they were too weak back then, so
           | that Socialism gave them the tool of collectivism to fight
           | against external threats and built up industries quickly.
           | 
           | We have never tried something like that (as you said UBP) in
           | a rich country. I guess Norway and Sweden are closer? But I'm
           | not sure.
           | 
           | Agree with your points on UBI.
        
             | mppm wrote:
             | I do wonder sometimes how UBP would play out in a developed
             | country... Would it remove the need for bullshit jobs and
             | refocus the market-oriented part of the economy towards
             | real progress? Would it make people happier? Or would it
             | make people spend even more of their lives scrolling,
             | swiping and retweeting? In any case, this is a purely
             | theoretical exercise -- even more so than UBI, the idea of
             | UBP is very much incompatible with neoclassical economics,
             | which thoroughly dominates economic and societal thought in
             | most of the developed world.
        
         | zehaeva wrote:
         | Ahh going back to the days of Government Cheese I see!
         | 
         | Everything old is new again.
        
           | markus_zhang wrote:
           | Government cheese was created when the country didn't have
           | enough resources. What I'm talking about is abundance of
           | resources. We never tried anything like that before.
        
             | jacobgkau wrote:
             | To be fair, government cheese (from what I understand) was
             | actually _created_ in order to save extra milk the
             | government bought up as part of a price control effort. In
             | other words, there was an abundance of milk (because the
             | government subsidized it, causing more to be produced than
             | the market needed).
             | 
             | Once it was already sitting around, it's been _used_ to
             | address citizens in the country not having enough
             | resources. Which is kind of the same thing your semi-
             | universal basic provisions would address.
        
         | tayo42 wrote:
         | I think expecting the government to figure out your meaning off
         | life is putting a bit of to much responsibility there.
        
           | markus_zhang wrote:
           | But what is wrong if there is an extra option? You don't have
           | to take the pill if you don't need it.
        
         | metabagel wrote:
         | > If I get UBI but feel lost, how do I find a sense of
         | belonging? How do I find meaning in my life?
         | 
         | That's rather a separate problem. The point of UBI is to make
         | individuals and families more economically resilient. This
         | should have a lot of beneficial spillover effects, but it's not
         | a cure-all for every ill.
        
         | nradov wrote:
         | And where exactly is that free furnished condo located? Do I
         | get to live in Beverly Hills for free if I want to?
        
           | markus_zhang wrote:
           | I agree that execution is the key, and I don't have the
           | answers for a lot of the questions.
           | 
           | I guess we (humans) will never achieve the equality that
           | everyone agrees to, because every one has his or her own idea
           | of equality, but maybe that shouldn't prevent us from trying.
        
             | nradov wrote:
             | You have a very strange idea of "everyone". I never agreed
             | to economic equality.
        
               | markus_zhang wrote:
               | Yeah that's one view of equality (by not agreeing with
               | the concept from the start), and why I said there is no
               | single answer every one agrees to.
        
       | no-dr-onboard wrote:
       | "Why do you think individuals deserve universal basic income?"
        
       | keybored wrote:
       | Some people think that basic income is the solution to the
       | problem. I'm not sure. But I'm open to it. Maybe a basic income
       | could serve as a transition for former millionaires and
       | billionaires who didn't have real jobs. Transitioning to a real
       | job via a jobs program might not be in the cards for them
       | considering their skillsets. But a basic income could help them
       | transition over a few years.
       | 
       | But eventually they should try to find some kind of full-time,
       | real job. Like the rest of us.
        
       | djha-skin wrote:
       | Paying someone who provides no return on investment is simply a
       | bad investment. Of _course_ extra money doesn 't hurt the person
       | getting paid. It hurts the government. They are now giving
       | someone value (payng them) in exchange for no immediate value in
       | return. This kind of expenditure at any business or organization
       | would be recognized as one of poor judgement. Value can't be
       | generated out of thin air. People must pay for what they use,
       | either by money or sweat. Lack of recognition of these basic
       | facts isn't good. UBI is not viable.
        
         | ipsento606 wrote:
         | > This kind of expenditure at any business or organization
         | would be recognized as one of poor judgement
         | 
         | The purpose of a business is to generate a return on
         | investment.
         | 
         | Are you suggesting that the purpose of a government is to
         | generate a return on investment?
         | 
         | > We the People of the United States, in Order to form a more
         | perfect Union, establish Justice, insure domestic Tranquility,
         | provide for the common defence, promote the general Welfare,
         | and secure the Blessings of Liberty to ourselves and our
         | Posterity, do ordain and establish this Constitution for the
         | United States of America.
        
           | rtp4me wrote:
           | The purpose of government is to generate opportunity for the
           | masses so they can become self sustainable.
           | 
           | A better quote for you: "Ask not what your country can do for
           | you -- ask what you can do for your country" (JFK).
        
         | foobarchu wrote:
         | Ok, so what do you propose to do instead as AI gradually eats
         | the world? A stated goal of most companies in that space is
         | essentially to make human work redundant, so shall we just kill
         | off all the ones who aren't needed anymore?
        
           | jay_kyburz wrote:
           | Not the grandparent, but I've been waiting for somebody to
           | ask!
           | 
           | The gov should guarantee a minimum wage job for everybody.
           | You get out of bed, do something useful, you get a pay check.
           | You might even learn a trade or develop skills.
           | 
           | Don't like your boss, or the work not right for you, there
           | can be plenty of other jobs for you to move into.
           | 
           | What are all these jobs? I'm glad you asked!
           | 
           | We need to plant billions of trees to soak up CO2, then tend
           | the forests. We could use a few massive desalination
           | projects. We can convert the world to green energy. We can
           | care for our elderly better. We could use a lot more
           | teachers. (How does 10 kids per teacher sound!). Of course
           | would could have more homes and nicer cities. (How good would
           | it be for the gov to pay you to build your own house!)
           | 
           | There is a very long list of cool stuff we could do if you
           | don't need rich people to invest in it first!
        
           | djha-skin wrote:
           | Who owns the AI, demanding payment for its use? Who owns the
           | GPUs that the AI runs on? Who sold those people the silicon?
           | Who owns the real estate upon which the GPUs run? All those
           | people will demand payment for services rendered or goods
           | delivered.
           | 
           | My personal favorite: Who fixes the AI when it breaks?
           | 
           | The lawn mower replaced human work, but it needs _just
           | enough_ direction that it's still worth money for humans to
           | run them, auto-run lawn mowers notwithstanding.
           | 
           | AI will make people faster, but humans will only do work for
           | other humans that do their share by giving value back.
           | 
           | I don't believe we will ever live in a world where people
           | won't want people working for them, or doing something for
           | them.
        
           | rtp4me wrote:
           | How about get educated/trained in something AI can't eat?
           | Become a HVAC technician, Nurse/Doctor, lawn care maintenance
           | owner, teacher, industrial shop owner, etc. There are plenty
           | of fields that don't require AI to compete. They just require
           | effort on your part to become educated and participate.
        
         | rtp4me wrote:
         | Thanks for this. Young people think UBI is great since they
         | don't have much invested in the system. Instead they just have
         | propaganda from media/social sites telling them how the world
         | is falling apart, how they don't have a chance to succeed, etc.
         | The answer: UBI! It is the "easy" answer since it literally
         | requires no effort on their part to participate in society.
         | They get up, eat free food, live in a free house, and enjoy the
         | day without any worry.
         | 
         | Sounds great until they realize the human condition eventually
         | kicks in. People will decide not to work - they will just take
         | and not give back. In the end, we need a society where people
         | are required to put forth the effort to participate.
        
       | jsdwarf wrote:
       | Many alleged benefits of basic income can be explained by flaws
       | in the study design. No I will not quit my 40h if the 1200EUR are
       | paid out for three years only.
       | 
       | But i will use the money to hire cleaning ladies or baby sitters
       | -> more spare time than control group.
        
         | metabagel wrote:
         | I don't get it. Where's the flaw?
        
       | mgraczyk wrote:
       | My big questions that do not seem to be answered in the paper:
       | 
       | 1. Did any participants drop out? Were there exactly 107 treated
       | participants at both the start and end of the trial? Previous UBI
       | experiments I've seen have huge biases where dropped out
       | participants are excluded, but dropping out is affected by
       | treatment.
       | 
       | 2. The ~1700 participants were selected from the 20,000
       | applicants via a procedure that accounted for their opinion about
       | UBI, "the sample was supposed to contain an equal number of
       | proponents and opponents of a universal basic income". Why was
       | this done? Can we see how these survey responses correlate with
       | outcome? Maybe the participants are much more/less supportive of
       | UBI than the German population.
       | 
       | 3. The participation criteria required that participants "had a
       | personal, monthly income between EUR 1,100 and 2,600" and "were
       | not unemployed for more than one year". This seems like it would
       | introduce a lot of bias, participants are all members of the 94%
       | of Germans I would expect to have their labor participation least
       | affected by UBI.
       | 
       | Seems quite a bit better overall than the studies in the Bay Area
       | over the last few years
        
         | jay_kyburz wrote:
         | A far more interesting study would be to give its to a bunch of
         | graduating high school students, guaranteed for the rest of
         | their lives, and see how many are contributing meaningfully to
         | the economy at the end of a few years.
        
       | IshKebab wrote:
       | 1. People _will_ stop working if they don 't need to _and won 't
       | need to in future_. This is obvious to anyone who has met people.
       | 
       | 2. We obviously can't afford UBI. Most governments have severe
       | deficits even _without_ UBI.  "Tax the rich! Then we'll be able
       | to afford it!".. yes well that's orthogonal. Let me know when you
       | figure out how to do that.
       | 
       | These studies are a waste of money.
        
         | supplied_demand wrote:
         | ==1. People will stop working if they don't need to and won't
         | need to in future. This is obvious to anyone who has met
         | people.==
         | 
         | You are arguing against a proposal nobody is making. In this
         | study, EUR1,200/month isn't really enough that people wouldn't
         | need to work. The average wage in Germany was EUR4,479/month in
         | 2023.
        
         | itishappy wrote:
         | 1. This isn't at all obvious to me. Look at the number of
         | people who continue working well into retirement or the people
         | who volunteer their time. I tried sitting on my ass for three
         | months after college and it drove me so crazy I picked up WebGL
         | despite having zero intention of using it in my career.
         | 
         | 2. Most UBI proposals I've seen involve replacing existing
         | programs with UBI. My personal favorite proposal is a flat tax
         | that's fully redistributed. There's no deficit possible here,
         | if tax revenue goes down, so do payments.
        
           | HideousKojima wrote:
           | >Look at the number of people who continue working well into
           | retirement or the people who volunteer their time.
           | 
           | Only 20% of people 65 or older in the US continue to work,
           | and I imagine most of that 20% are doing part time or
           | intermittent work.
        
             | itishappy wrote:
             | Nice stat! The national average is 60%. Wonder how many of
             | those half-retired folks still need the money?
        
           | lelanthran wrote:
           | > Look at the number of people who continue working well into
           | retirement or the people who volunteer their time.
           | 
           | And those people are a fraction of people who _don 't_
           | continue working when they don't have to.
           | 
           | You can't make decisions based on the behaviour of such a
           | small minority.
        
             | itishappy wrote:
             | That was an example off the top of my head. Is that the
             | most represenative sample? Another group that doesn't need
             | money includes doctors, lawyers, and executives in their
             | 40s and 50s. I don't see many of them quitting the moment
             | they're able. What do you feel the appropriate rate for the
             | entire population is? What's the rate required to sustain
             | society?
             | 
             | The only decision I intend to make (and the only one I feel
             | qualified to make) is that I'd like to see more data. We
             | shouldn't be making decisions off of assumptions either
             | way.
        
               | s1artibartfast wrote:
               | Well we don't have enough people working today to sustain
               | society, so it seems to be in the wrong direction.
        
         | metabagel wrote:
         | > 2. We obviously can't afford UBI. Most governments have
         | severe deficits even without UBI. "Tax the rich! Then we'll be
         | able to afford it!".. yes well that's orthogonal. Let me know
         | when you figure out how to do that.
         | 
         | That's not at all obvious. I'm not rich, but I recall when I
         | made far less money and was taxed at a marginal rate which was
         | 4% higher than the one which applies to me now. In the U.S.,
         | we've made a conscious decision to keep cutting taxes and
         | running large deficits. We could decide to raise taxes and pay
         | for UBI. Yes, that's a political problem, but it's not at all
         | the problem that we can't afford UBI.
        
         | zipy124 wrote:
         | 1. If this was true the wealthy would not work, and yet a large
         | majority still do, socialites and other classes are very small
         | minorities of the wealthy.
        
         | jillesvangurp wrote:
         | There already is something similar to UBI. People don't starve,
         | they have shelter, and they generally get taken care off when
         | they have medical emergencies. That's true in most countries.
         | What you get at that level is typically not great. But it is
         | provided for by societies and governments across the world and
         | lots of people are dependent on that.
         | 
         | That current system is actually more expensive than UBI. At its
         | best it would be about as expensive. For example, some
         | countries spend almost as much on unemployment programs as they
         | do on the actual unemployment benefits. Which, if you think
         | about it is mildly ridiculous. People that show up at a
         | hospital are not going to die abandoned in the gutter (well
         | mostly, Michael Moore documented a few negative examples for
         | this in the US). And of course, having your life saved might
         | bankrupt you in the US. Even if you are insured. And even there
         | they'll likely patch you up at least. And in most other
         | countries, everybody is insured so it's not a problem. The
         | modern sign of poverty is being morbidly obese because of the
         | excess of low quality nutrition people seem to be able to get
         | their hands on via food stamps and what little benefits they
         | can scrape together. Which then causes health issues. Which
         | further burdens the unemployment and benefits system.
         | 
         | All this is stupid, inefficient, costly, and not that great if
         | you are on the receiving end (to put it mildly). But
         | formalizing the status quo in UBI form might make things a bit
         | more efficient and better. It would still not be great or that
         | attractive as a lifestyle. But then the message becomes "just
         | get a job if you want/need more". Don't worry about starving.
         | Worry about getting something nice for yourself and work to
         | secure that. Most people have more ambition than just coasting
         | on benefits. And would you employ the ones that don't?
         | 
         | People think of this in closed world terms (somebody has to pay
         | for it), not realizing that most economic growth is a complex
         | system with money being created and distributed (in complex
         | ways) by central banks, which then causes inflation to happen,
         | and spending to compensate for that. A lot of jobs are more
         | about distributing money to people and getting them to spend it
         | than getting people to do something that adds value. The most
         | important function many people have in our economy is just
         | spending their money. Skipping the part where these people
         | pretend to be useful in some bullshit job isn't that big of a
         | deal.
        
         | alabastervlog wrote:
         | > 1. People will stop working if they don't need to and won't
         | need to in future. This is obvious to anyone who has met
         | people.
         | 
         | Tons of people work jobs they don't like, instead of jobs they
         | would prefer, because the former pays a _ton_ better than the
         | latter, even though they could (barely, perhaps) get by on the
         | lower salary.
         | 
         | They do this because they like stuff, want prestige, and maybe
         | want to raise a family in circumstances other than poverty.
         | 
         | It's not obvious to me _at all_ that UBI at levels anyone is
         | even half-seriously proposing would cause more than a very few
         | people to stop working.
        
         | lantry wrote:
         | Yes, the studies are a waste of money when you've already made
         | up your mind about the way the world "obviously" works, and
         | aren't willing to test your assumptions or change your mind.
        
       | throw7 wrote:
       | I don't think UBI will work. Once it's universal, it will be
       | soaked up somewhere in the economy. I would bet on land/real
       | estate.
        
         | sharkjacobs wrote:
         | I'm not sure that I understand, are you saying that UBI might
         | not work because real estate could become more expensive?
        
           | krapp wrote:
           | They're implying that landlords will immediately raise rents
           | by the amount of UBI, rendering it pointless.
        
       | pkdpic wrote:
       | Seems like one of the primary themes in responses here is
       | inflation, which seems like it makes sense.
       | 
       | But is the point of this study to provide a basis / justification
       | for larger tests? And if so would the next step be to test a UBI
       | for the full population of a small city or state?
       | 
       | The discussion around inflation though is making me wonder if any
       | non-global plan for a UBI would be enough. Is it something that
       | would have to be adopted universally / globally before the real
       | effects on inflation / economies could be determined? If so is
       | this just a doomed concept?
        
       | Animats wrote:
       | _This group consisted of people between the ages of 21 and 40,
       | living alone, with a net monthly income between EUR1,100 and
       | EUR2,600 - in other words, middle-class individuals who were
       | still relatively early in their careers and could move around
       | flexibly in the labour market._
       | 
       | That's a group where financial help can pay off.
        
       | dahdum wrote:
       | Important to note their findings only apply to a smaller subset
       | of people, and do not include those with the most need.
       | 
       | > The findings of the pilot project will be generalizable not to
       | the entire German population, but to 21- to 40-year-old
       | individuals in single-person households with middle incomes.
       | 
       | The reason:
       | 
       | > We were thus faced with the decision of selecting 122 people
       | who represented the entire country but did not provide
       | scientifically reliable data on the effects of a basic income, or
       | selecting 122 people from a more limited group from whom we could
       | draw definitive conclusions. In the end, we chose the latter.
       | 
       | https://www.pilotprojekt-grundeinkommen.de/en/blog/how-the-p...
        
       | mathgradthrow wrote:
       | The cost of an annuity that pays your basic, fundamental living
       | expenses: Food, shelter, water, etc. can be thought of as a debt
       | that all people are born with. In the US, you can obtain a room
       | in an apartment, basic food, internet access, and transportation
       | (minimal versions of all of these), for something like
       | $15,000/year.
       | 
       | such a lifetime annuity would cost the average 18 year old on the
       | order of 200-300 thousand dollars. This means that an 18 year old
       | starts with about the same level of implicit debt, that a doctor
       | who has just finished medical school has explicit debt, except
       | that student debt doesn't scale with inflation.
       | 
       | A key feature of a society which values social mobility is
       | reducing the debt burden of its children. I don't think the
       | answer on basic income is cut and dry, and I do think its
       | important for people to sustain themselves via their own efforts,
       | but since you likely wouldn't increase the debt burden of a
       | teenager, and you also didn't select the debt burden of the
       | average teenager. You should at least consider the possibility
       | that you would actually choose to reduce, by some amount, the
       | debt burden of the average teenager.
        
         | jjice wrote:
         | Not that it's the point of what you're saying, but at 300k, a
         | 15k yearly payout would be 5%. I'm almost certain that no-one
         | would ever give a 5% inflation adjusted annuity to an 18 year
         | old for 300k.
         | 
         | All that to say that the value you propose is probably even
         | higher than what you lay out.
        
           | mathgradthrow wrote:
           | I just got a quote for 16k/year for an 18 year old for 300k,
           | so I think I did a pretty good job with my estimate actually
           | :P.
        
             | wave_function wrote:
             | Does that 16K/Year adjust for inflation?
        
       | gorpy7 wrote:
       | Maybe there should be a universal basic job. jobs can be rated by
       | how much value is created- it can't be moving rocks from one
       | location then back again. maybe that's too hard to calculate.
       | weekly, if you create enough value, you've earned your basic
       | income. This might be 2 days of road work. you get 40k for this.
       | take responsibility and up your skills with the remaining time. I
       | don't think it's ever a good idea to give money out just for
       | being- i understand there are sales taxes etc. I hate the idea of
       | creating jobs, it has always felt wrong. If the jobs fulfill a
       | valuable and timely need, sure. But i'd rather kill jobs, i say,
       | if you can automate your job with no loss in value, you should be
       | paid at least double that for the rest of your days. If we focus
       | on creating value, we'll all benefit. it's just a matter of
       | measuring value i suppose. things like teaching a valuable skill
       | should be of enormous value- as an example. call me crazy.
        
         | carlosjobim wrote:
         | Hitler for one always bragged about eradicating all
         | unemployment in a stroke by ordering the autobahn projects.
         | 
         | The core of the problem today is this: With modern tools, a
         | modern worker gets 100 times more work done than a worker
         | without modern tools. And you need to hire people who can use
         | those modern tools and are trustable. Now, for most jobs you
         | can train anybody to do it, but you cannot train people to be
         | trustable and not destroy or steal your modern tools.
         | 
         | The massive infrastructure projects and massive industrial
         | projects of the past could swallow all the workers you could
         | throw at them. And it didn't matter much at all if a worker was
         | any combination of a drunk, a brawler, somebody who didn't
         | speak the language, involved with organized crime at his spare
         | time. As long as he did his job. But today, the very
         | specialized and efficient tools are too sensitive and you want
         | to be careful who gets near them and operates them.
         | 
         | Putting the unemployed to do big infrastructure projects or
         | similar is still better than them doing nothing - but mostly
         | for their own development and spirits, rather than the actual
         | work being done.
        
       | AndyKelley wrote:
       | Seems like an efficient way to recycle wealth that keeps pooling
       | too much at the top. I think we can all agree that there's a
       | limit to how much wealth inequality is healthy for society, and
       | most people would agree that we're past that point now.
        
       | stevage wrote:
       | > With a basic income, the participants receiving a basic income
       | saved an average of EUR450 more per month than the control group.
       | 
       | So where did the other 1050 euros go? It says their consumption
       | habits went up slightly then back down. And they donated a tiny
       | amount more and gave a bit to their community. There still seems
       | to be 500 euros or so missing?
        
       | phkahler wrote:
       | UBI doesn't even work algebraically. Where do you take the money
       | out of the economy to pay for it?
        
         | AndyKelley wrote:
         | The money naturally flows from those who don't own assets, to
         | those who do. So, to keep the economy flowing healthily, the
         | cycle needs to be completed by taxing those who own a lot of
         | assets.
        
       | huitzitziltzin wrote:
       | Of all the things which are never going to happen, I put
       | universal basic income at the top of the list. Faster than light
       | travel seems vastly more likely than universal basic income.
       | 
       | I don't believe we can pay for it, nor do I believe that it's
       | remotely politically feasible.
       | 
       | Studies like this are perfectly nice but I can't imagine they are
       | actually designed to confidently predict the general equilibrium
       | effects of rolling out UBI on an entire society. (The studies may
       | not be designed with that in mind but it's crucial.)
        
         | stevage wrote:
         | Elsewhere in this thread, someone saying this already exists in
         | Alaska.
        
       | lr4444lr wrote:
       | Sorry if this offends, but I am deeply skeptical that the effect
       | of UBI is independent of common culturally influenced behaviors
       | of where it might be implemented. Try it in an opioid epidemic
       | stricken rust belt town in the American Midwest, or an urban
       | ghetto (I'm not totally sold that the selection criteria for the
       | Stockton study were unbiased) and let us know how it goes.
        
       | bentt wrote:
       | UBI is great on an individual level, but as we saw with the Covid
       | Stimulus payments in the US, they cannot help but be quite
       | inflationary. That's my biggest worry about injecting huge
       | amounts of money into a system that is truly universal.
       | 
       | And if it's not truly universal, then it's a bad idea. Means
       | tested money is just an incentive to fit the criteria.
        
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