The Feasibility of Universal Basic Income: A Critical Examination Based on Economic and Political Realities
Understanding the Concept
Andrew Yang's proposal of Universal Basic Income (UBI) has gained considerable attention in recent years. The idea is to provide a regular, unconditional sum of money to every citizen, regardless of work status, to cover their basic needs. However, the feasibility of such a system is often debated, drawing comparisons with the concept of economic perpetual motion machines. In this article, we explore why UBI as proposed by Andrew Yang might not work, based on economic principles and real-world considerations.
Economic Perpetual Motion Machine Analogy
The short answer is that the idea of UBI is fundamentally flawed, much like the concept of a mechanical perpetual motion machine. This is because, just as a perpetual motion machine cannot be built, an economy cannot continuously produce more goods and services than the inputs of work, resources, and technology. Handing out money does not create additional goods and services; instead, other people must produce these goods and services to meet the demands of UBI recipients.
Essentially, the economy functions based on a balanced exchange of labor and goods. If one person receives money without providing labor, it must come from someone else who has produced and provided goods and services. This leads to a situation where the labor and goods generated do not equate to the expected output by UBI recipients, leading to dependency on other people's labor, which can be seen as a form of slavery and theft.
Politics and Public Perception
Public Opposition
One significant challenge to UBI is the political landscape, particularly in relation to who is deemed 'worthy' of receiving this income. There are a substantial number of people who oppose the government providing money to individuals who are deemed 'unworthy.' These individuals prefer that the government spends more taxpayer money on determining who is worthy of UBI, rather than distributing it to everyone.
Location and Cost Variability
Another issue is the variability in the cost-of-living across different regions. A UBI that supports the bare necessities in one state might allow for an opulent lifestyle in another, leading to substantial discrepancies. For example, a basic income that covers essential needs in an average state might be insufficient to pay for even a modest house in another state, let alone a doghouse in another state requiring luxury and higher living costs.
Defining Universal Basic Income
Challenges in Definition
A common argument against UBI is the inability to define what it actually represents. Variables such as the level of income, its universality, and the nature of the income itself often lead to various modifications. For instance, adding conditions or changes to make the system 'universal' or 'basic' or 'income' could undermine the very essence of UBI.
The complexity of defining UBI highlights the difficulty in implementing such a system. Any tweak to the concept risks deviating from the original idea, which is to provide a universal, unconditional basic income to all citizens to cover their essential needs.
Conclusion
In conclusion, while the idea of Universal Basic Income may appeal to many, it faces significant challenges when considering economic realities and political landscapes. The analogy to economic perpetual motion machines underscores the underlying flaw in the concept. The political resistance and variability in cost-of-living across different states, coupled with the impracticality of defining what UBI really means, all contribute to the difficulty in realizing a truly universal, basic, and unconditional income system.