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0 pointsempressplay9y ago0 comments

Which is a good point. Ultimately all costs get passed on to the consumer -- so where does it end?

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It ends when the cost is so high that automation becomes cost-effective. Basic Income, as much as minimum wage, is a collective push towards skilled labor, away from menial tasks.

In general terms, UBI seems sane. I see two implementation problems. First, worldwide society competition: Can my society support UBI and compete with China? Second, automatic system balancing. What is the correct UBI level? Can we leave it out to be hashed by politicians?

panic9y ago

As costs go up, consumers buy less. There's a certain price which maximizes profit: that's where it ends.

empressplayOP9y ago

Exactly. I have 5 apples. There are 5 people willing to pay at least $2 for them, so I sell them for $2. That's basic economics.

With a basic income, now most of these people have more money. So I can charge $3 per apple, and even if I only sell 4 of them I still make $2 more than I made before. I eat the last apple myself, and the person who only has the basic income doesn't get an apple at all.

I think universal welfare makes more sense.

sokoloff9y ago

However, the $12 you got in case B is not worth as much in the market as the $10 you go in case A, since the economy appears to have suffered 50% inflation in the meantime.

Your $12 in case B has a purchasing power equivalent to $8 in case A.

panic9y ago

If you have a monopoly on the only five apples in the world, why were you charging only $2 in the first place? In a competitive economy, somebody else will be happy to sell an apple to the last person.

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sergiosgc9y ago

It ends when the cost is so high that automation becomes cost-effective. Basic Income, as much as minimum wage, is a collective push towards skilled labor, away from menial tasks.

panic9y ago

As costs go up, consumers buy less. There's a certain price which maximizes profit: that's where it ends.

empressplayOP9y ago

Exactly. I have 5 apples. There are 5 people willing to pay at least $2 for them, so I sell them for $2. That's basic economics.

I think universal welfare makes more sense.

sokoloff9y ago

However, the $12 you got in case B is not worth as much in the market as the $10 you go in case A, since the economy appears to have suffered 50% inflation in the meantime.

Your $12 in case B has a purchasing power equivalent to $8 in case A.

panic9y ago

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