Break the System: “Direct Giving, Less Crime, Less Poverty” (Part#2)

Universal Basic Income

A universal basic income is another tool that can be used to reduce or eliminate poverty — and as such, take out some of the impact of crime and crime victimization. Often, a universal basic income is thought to be in competition as an economic solution with federal job guarantee to the poverty problem. However, the two concepts can align together and provide benefits to society — especially with the growth of automation and the looming crisis of job elimination that comes with it.

Her research also indicated a higher level of participation in schools, a reduction of crime by 36.5% and a reduction of poverty from 86% to 68%.

Additionally, unemployment saw a jump from 60% to 45% and Namibia saw a wage increase of 29%, which does not include money from the universal basic income itself. Unlike the welfare system we have in the United States today, Namibia’s universal basic income encourages work, rather than discourages it, because it does not punish people for earning more wages. Because the universal basic income is unconditional and requires no means test, an individual will not be removed from the program due to earning higher wages. Stantens also cites Dr. Markman (2014) on the psychology of choice and motivation. Markman summarized that individuals who have options are more likely to be invested in the choices they make. In this example, an individual who works because they want to, rather than have to in order to survive, is more likely to be more invested in the work they do. Anderson (2014) [17] references a $27 billion dollar bonus that went to the wealthy wall street investor and personnel. According to Anderson, every $1 invested into a low-wage earner brings in $1.21 into the economy whereas every $1 invested in a high-wage earner brings in $0.39 into the economy. Based on this, Anderson found that had the $27 billion been invested into low-wage earners, it would have grown the economy by an impressive $32.3 billion, triple the actual 10.4 billion boost that was given as a result of the wall street bonuses. Norris, Kochhar, Tsounta (2015) [18] state that making the rich richer by even one percent will lower the gross domestic profit by 0.08% whereas making the poor and middle class richer by even one perfect will raise the gross domestic profit by 0.38%, which raises the growth prospect or the country. As such, Cooper [19] cites economist Thomas Piketty in stating that capital in its natural state does not trickle down but rather stays in the hands of an established few.

The findings within the village with universal basic income, as cited by Standing, show improvements in child nutrition, health for adults and children, school attendance, sanitation, economic activity, earned income (wages) and socioeconomic status of vulnerable populations such as women, the elderly and the disabled.

The equity effects resulted in bigger improvements within the tribes and a better turn-out for the most vulnerable demographics. Additionally, economic activity and work/productivity increased. Many individuals also were able to buy themselves out of the bondage of debts. Arguing that the universal basic income would result in inflation, Standing states that this critique ignores the elasticity of supply. Standing states that universal basic income causes a sharp rise in production and as such reduces the prices of goods.

References:

[14] Scott Santens (2015)

Other Issues

Federal Job Guarantee
Attainable Shelter
Universal Health Care
Decriminalize Drugs (Yes, even that one)
Decriminalize Sex Work

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Angel D’Angelo

Angel D’Angelo

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I’m not an expert or scholar on anything. I mainly write for me. If others see it, and love it, great :)