alt Hacker NewsUBI as a concept does not add up. It assumes an even production of all goods that people might need, but there isn't, you are giving everyone fiat currency that is not inherently tied to any physical good. Very fast you will descend into either plan economy where you get food stamps, or an economy where people are trading goods that are actually tied to value.
For example, you go to the store to get eggs, since everyone has UBI, they decide to also get eggs, the eggs either run out, or the store raises the price, at which either you will get food queues like in the USSR, or everyone will need more UBI to afford eggs. The solution to this is to increase egg production, but this is not instant, and not necessarily a priority, while money transfers are instant.
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> It assumes an even production of all goods that people might need, but there isn't, you are giving everyone fiat currency that is not inherently tied to any physical good.
Is what you're saying that since UBI would disconnect someone's production from their income, then this will cause shortages of goods? I think UBI only works if the income generated by it is tied to production. That production would not be generated by human labor, but instead by robot labor. I think if you disconnect that then the system would not work, but why would you need to?
Without a workforce there is no consumption, and therefore capitalism cannot exist. Yes, we would require a planned economy. Call it communism or whatever you like, but free market economics literally cannot exist in such an environment.
Capitalism is based on two simple, fundamental assumptions about the world:
- everyone works
- everyone consumes
1. Turned out not to be true. We have disabled people, elderly people. We patch it with legislation like SSI. That only works because everyone else is still working.
Our monkey patch solutions have held up well for a long time. But, if either of those two assumptions are broken in a large way, the entire system collapses. UBI is yet another monkey patch. As you know, it won’t hold if we bend the invariants of the system enough.
Eventually, a fully planned economy will not be optional.
I'm no economist but here is how I think of it. In an ideal world let's assume every worker is replaced by one AI / robot that is an exact clone of them. Then let's say there is an ideal government that taxes all the income each person's clone makes and hands it directly to them. In such an economy nothing would change, things would go on as they always have.
Now some will be unlucky and end up with a clone that makes them way less than average. So to fix this the salaries of all the clones are put into one pot and redistributed as "UBI". Given the wealth disparity, most people would end up better off than before, the high earners of the past will be a bit worse off though.
But of course we are not in a perfect world, in reality there are many inefficiencies, and no company would accept a 100% AI worker tax. However, these AIs are presumably not just our clones, but 100x better. So we are in a position of abundance not scarcity. There's enough eggs for everyone. It becomes a question of distribution and policy