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Want to fix the economy? Give us all some cash!

BSM1

What? Me worry?
May not be such a far-fetched idea. Along this line,I heard of a study by some economics professor where he claimed we could give every man, woman, and child on welfare $30,000 a year and save the government over a billion dollars each year
 

Monk Of Reason

༼ つ ◕_◕ ༽つ
However this ignores the most important aspect of any economy and that would be incentives. This form of economy would crash for incentives would change.
 

BSM1

What? Me worry?
However this ignores the most important aspect of any economy and that would be incentives. This form of economy would crash for incentives would change.


Granted. But aren't we doing that already? If we put cash in the hands of more discriminate buyers, wouldn't that have a boosting effect to retail sales, especially larger ticket items. Concurrently, wouldn't wholesale and manufacturing sectors have to follow? Not saying this is the greatest of ideas but desperate times call for...well, you know.
 

Monk Of Reason

༼ つ ◕_◕ ༽つ
Granted. But aren't we doing that already? If we put cash in the hands of more discriminate buyers, wouldn't that have a boosting effect to retail sales, especially larger ticket items. Concurrently, wouldn't wholesale and manufacturing sectors have to follow? Not saying this is the greatest of ideas but desperate times call for...well, you know.

No. Social programs are not the same thing as simply giving people welfare. And its extremely hard to get on cash based welfare now unless you have children or are disabled/elderly. Food stamps are a good way of giving people commodities rather than cash. A universal healthcare system would keep our people healthy and remove the largest drag on our economy to date. Things of this sort. Even free public water wouldn't be a terrible idea. A better education system ect.

Back on point though. If we were simply to give more money to people who need it in a pure cash based system like this it changes incentives. If I make 35 thousand a year and someone suddenly is given 30 thousand a year for nothing then there isn't much reason for me to keep my job is there? I bet I could cut 5 thousand from my annual budget (maybe from gas getting to and from work) and get on that program. Or if it really is per person then a two person family would make more than I do now with BA. My wife doesn't work and if we both got 30k a year (I would only assume untaxed because it wouldn't make much sense to tax this sort of program income) would be a significant increase in my own income. I mean I can honestly tell you if I had to quit my job to get 60k a year for me and my wife I would do it.

You give people incentives to leave work or stay unemployed. Social programs often do not. Some do and I think that is a problem. We need to have programs that help people back on their feet and encourage them to do well. Our programs don't do that well enough.

Though on the same subject it is not helpful to make poverty conditions so unbearable that the poor would live inhumane conditions. We also have this in many states where state supplements to medicaid are not well funded.

If it were up to me I would change the whole system to a new design from scratch. But again that is just me. I like efficiency and what works.
 

Wirey

Fartist
But it's not 30,000 a year. It's just above poverty. Incentives like owning a car or taking a vacation should get most people off their can. If you'll quit your job to go on the dole, it has already happened.

I say this is a far better use of taxpayer money than donating it to bankers.
 

Monk Of Reason

༼ つ ◕_◕ ༽つ
But it's not 30,000 a year. It's just above poverty. Incentives like owning a car or taking a vacation should get most people off their can. If you'll quit your job to go on the dole, it has already happened.

I say this is a far better use of taxpayer money than donating it to bankers.

I would agree. But I don't think "money" should be the medium in which we re-distribute the funds to the public. I do believe that people should be getting 18-20 thousand per person back from the government every year but through services rather than cash.
 

Amechania

Daimona of the Helpless
I'm sure the stoners who spend the whole day down at the transit center would be all for it. You could get a radical skateboard fir that much cash and still have plenty left over for a gun.
 

Revoltingest

Pragmatic Libertarian
Premium Member
I recall a proposal by some libertarian <evil organ music here> to:
- Pay everyone $10,000 per year....similar to the negative income tax approach
- Lower the marginal tax rate for everyone to 17%

1) This would provide an automatic safety net.
2) It would encourage all to work & invest because it would eliminate high marginal tax rates & means-testing catastrophes for the those relying upon the dole
3) A lot of bureaucracy for the dole would be eliminated....no means testing, other than existence.
A recent revisit to the proposal....
4) Effective tax rates would be most progressive for low income types.
The Pragmatic Libertarian Case for a Basic Income Guarantee | Cato Unbound
 
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