Guaranteed Universal Income = Guaranteed Universal PovertySubmitted by thenung on Sat, 12/21/2013 - 10:36
Another flawed, not-so-new economic idea to save the poor and middle class has once again started to gain popularity: a guaranteed universal (or basic) income. Basically, everybody is guaranteed a certain amount of money per month, courtesy of our overlords benevolent leaders. Anyone who earns above that amount gets taxed "in proportion." There are better ideas, but basic income advocates naively claim that their scheme would defeat poverty once and for all.
According to the 2013 Federal Poverty Guidelines, the individual poverty level is just under $12,000/year. So let's imagine a system where everyone, upon reaching a certain age, received a check for $1,000/month just for being alive.
The fault of any basic income scheme is in the underlying assumption that, once implemented, people will continue to work just as much as they do now. But this assumption conveniently ignores the immense disincentive to work once such a system is in place.
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