With Andrew Yang bringing the idea of UBI (Universal Basic Income) to the forefront in his campaign, and with its appeal to people from a wide variety of political viewpoints, and since I didn't see a thread for this topic (Admins can merge if I missed it), I think it's relevant to start a discussion on UBI since it's one of a few economic ideas of Democrat candidates that doesn't completely suck. So I'd be interested to hear the viewpoints of others on this board.
First off, the first time I really heard of Andrew Yang was on Joe Rogan's podcast, and I appreciated how he is able to speak on a variety of topics from an analytical perspective rather than trying to appeal to people emotionally too much. If you haven't watched his interview on Rogan's podcast, I'd definitely suggest viewing it, as well as his interview with Ben Shapiro on his Sunday Special (regardless what you think about Shapiro - it's irrelevant to this). Both those videos are at the bottom of this post.
Like he says, UBI (or some form of it) has been advocated by people who represent all political viewpoints, and it's generally a non-partisan issue. I disagree with many of the claims he makes, and I feel that many of the ways he presents the issue of UBI are intellectually dishonest. Here would be a list of pros & cons as I see it:
Pros:
-An extra $1000 a month would allow a lot of people who are struggling to get by or who are at or below the poverty level to get a leg up
-Little administration - instead of having to monitor how people spend the money like those on food stamps or other gov programs, people are free to spend it how they choose.
-The economy would likely get a nice boost, as millions of people will be spending more money on a monthly basis
-It would not de-incentivize work as much as conventional welfare, as it wouldn't get yanked from them once they start earning money
-People who are laid off or leave their jobs wouldn't need to be in as big of a rush to find a new job, and they hopefully wouldn't be forced to take the 1st job available
*There are a lot more pros that allow more people freedom of choice, which is very appealing to libertarian minded people like myself. Many more pros are laid out by Yang in the videos below
Cons:
-Price tag. He estimates the cost at $1.8 Trillion (which is ON TOP OF current welfare programs, as he doesn't propose eliminating any current programs) which is probably low-balling the actual amount
-How to pay for it. Yang proposes VAT (Value Added Tax) which is essentially a fancy marketing term for a national sales tax. He sells it by claiming that giant tech companies will be the ones paying for it, which is one of the major parts of his pitch that is intellectually dishonest. VAT would be added to every purchase you would make on Amazon, etc. That means that you, the consumer, would be paying extra for all the purchases that you're making in order to subsidize the dividend that you're collecting. It would not shave any profit off the tech companies (or very little if any)
-Subsidizing high income earners - I don't see any reason why an individual who already makes a sizable income should also collect the dividend. If the policy is about helping people who are less fortunate, then it should be just that.
-Yang proposes $1000/month/person. What's to stop the next person from increasing it to $2000? Or $5000? There's got to be some sort of limit on it (maybe a % of median income, or % of minimum wage full-time earnings - just ideas)
***My verdict - I appreciate that Yang brings forth a unique idea, but I can't support it how he's representing it. If we were to structure it instead as a negative income tax (like Milton Friedman advocated), as well as replace many of the current welfare programs, THAT would be an idea I'd get behind 110%.
What say you?