Extract from an article by Claire Connelly
Creating a universal basic income as a means of addressing unemployment and productivity problems has become the topic du-jour as workers become increasingly separated from the means of production, with even modest salaries failing to cover the cost of living.
Consequently, Australian taxpayers have had to take on a greater burden of debt to support themselves.
What is basic income?
- A system where all citizens receive an unconditional sum of money
- Income is supplied by either government or public institution
- Supporters say it would end poverty
- Those against it argue it would destroy the incentive to work
A universal basic income works as a partial or complete substitute for the existing welfare or social security system, in which every adult citizen is paid a flat rate fee by the Government – regardless of whether they are already working, and regardless of their age, ability, gender, health status or skill level.
Leading economists claim creating a universal basic income is throwing money at a problem in lieu of actual solutions.
Besides which, from a cost of living standpoint, it could lead to inflation by increasing demand for goods and services.
They claim a job guarantee program would better address both inflation and unemployment.
“We forget the most valuable commodity is people,” Fadhel Kaboub, Associate Professor of economics at Ohio’s Denison University said…(continues)
SOURCE: Claire Connelly, “Why a universal basic income is a poor substitute for a guaranteed job”, ABC News, 19 jan 2016
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