Finland may be testing an interesting idea, where they would eliminate unemployment insurance and other welfare programs and simply give every adult $870/mo regardless of employment status or need.
If they do this it would happen in another year or so. Apparently this has been tried in smaller scale tests in the US and Canada decades ago. The thinking is that being on welfare reduces the desire to work minimum wage jobs because once you get the job you lose the welfare, and even if you make a little more, if you're making enough now to survive on welfare, why also work 8 hours a day for little more?
Under this method you'd continue to get the payment, and anything you work additionally adds to your basic income. The cost of living for the average student is right about this level, and education is free, so it's not too little to live on, though if you've got children if may be harder since only adults get the payment. The article suggests it would replace all other welfare, but I'm guessing child welfare programs might not go away completely.
http://www.csmonitor.com/World/Glob...izens-rich-or-poor-a-monthly-payment?cmpid=FB
I've not thought through the economic implications, other than they have a very high income tax rate, so this is not much different than a forced redistribution of wealth.
My concerns would be how this affects the basic cost of living, but since those on the dole are already getting this income, my initial guess is that not much will change.
But if someone simply socked half of it away in an interest bearing account, and lived with roommates on the other half, you might not have to work at all, ever, and you can pay yourself a nice salary later on in life depending on interest rates.
If they do this it would happen in another year or so. Apparently this has been tried in smaller scale tests in the US and Canada decades ago. The thinking is that being on welfare reduces the desire to work minimum wage jobs because once you get the job you lose the welfare, and even if you make a little more, if you're making enough now to survive on welfare, why also work 8 hours a day for little more?
Under this method you'd continue to get the payment, and anything you work additionally adds to your basic income. The cost of living for the average student is right about this level, and education is free, so it's not too little to live on, though if you've got children if may be harder since only adults get the payment. The article suggests it would replace all other welfare, but I'm guessing child welfare programs might not go away completely.
http://www.csmonitor.com/World/Glob...izens-rich-or-poor-a-monthly-payment?cmpid=FB
I've not thought through the economic implications, other than they have a very high income tax rate, so this is not much different than a forced redistribution of wealth.
My concerns would be how this affects the basic cost of living, but since those on the dole are already getting this income, my initial guess is that not much will change.
But if someone simply socked half of it away in an interest bearing account, and lived with roommates on the other half, you might not have to work at all, ever, and you can pay yourself a nice salary later on in life depending on interest rates.
Looks like one of the larger unintended consequences is that it reduces pressure to marry for support. Could be yet another reason people choose not to get married in the long run.In a series of controlled experiments that the US government conducted around the country to test a basic income program during that time, it was found that the payments didn’t seem to affect poverty levels, and that participants receiving payments, particularly black families, appeared to divorce at much higher rates than the control groups