From Ilargi: Is Capitalism Dead or Merely Dying? at Naked Capitalism:
Yves here...
As readers know, we also are not fans of a universal basic income. First, if it were high enough to provide even for a subsistence living, it would be massively inflationary. That means it would at best be a stipend that would wind up subsidizing businesses, since it would allow them to pay lower wages. It would also be used to cut/end existing targeted programs, which are often far more generous to populations with specific needs. Second, it would reduce recipients to being mere consumers, held in contempt by supposedly more productive people. That also means, like the Speenhamland system, it would be at risk of being ended abruptly and displacing people who had long been largely or entirely out of the workforce and would not be able to find sufficient employment.
As readers know, we also are not fans of a universal basic income. First, if it were high enough to provide even for a subsistence living, it would be massively inflationary. That means it would at best be a stipend that would wind up subsidizing businesses, since it would allow them to pay lower wages. It would also be used to cut/end existing targeted programs, which are often far more generous to populations with specific needs. Second, it would reduce recipients to being mere consumers, held in contempt by supposedly more productive people. That also means, like the Speenhamland system, it would be at risk of being ended abruptly and displacing people who had long been largely or entirely out of the workforce and would not be able to find sufficient employment.
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