>>7705756OK memes aside I have really thought about why Yang's UBI plan won't work. and the answer came rather simple.
He proposes adding 20% VAT on all prices, which is already awful—it's like a very bad case of inflation.
What does this mean for production? To make things simple: producing any good becomes 20% more expensive. this would result in one or more of the following:
—shrinks production and supply
—drives businesses out of the market or forces heavy cuts…
—…creating unemployment and or lowering wages
—makes goods way more expensive for consumer for the same quality
this is bad for us and the economy in any scenario.
But, on the other side, it also gives people free money. This might look good at glance, but what does this mean? Effectively, demand and consumption rises. But the total amount of work done in the economy remains the same or lowers, because people are discouraged from working. What this means? People consume more than they can produce now. This creates shortages; in turn prices rise even more to correspond to higher demand, even more than previous 20% VAT. So the $1000 tirgger something like a huge inflation.
So, in short:
We produce less goods, more expensively, than we could previously. This is like going back 50 years in the past and undoing scientific progress done since then, or entering HUGE inflation which makes 10% look small.
…All to benefit whom? people who don't work and don't even qualify for welfare. And btw, even Yang himself says
>… that $12,000 per year will still not be a good enough living for most people…other people will get increased prices, not just 20% VAT but way more, paired with lower wages and unemployment.
fuck Yang and fuck UBI. any replies/arguments welcome.
