Unfortunately monopolies, duopolies, partnerships, conglomerates, and similar, across so many of the essential goods and service markets means ‘perfect markets’ where competition drives prices down, rarely exist in practice. That’s not even mentioning all the other factors which work to drive inflation, like constant demand for endless growth. UBI doesn’t solve anything. These are systemic issues which require systemic change.
There is an almost infinite number of models and policies a country could implement to address wealth inequality, and UBI would be at the bottom of that list in terms of effectiveness. UBI is not the tool for that job. Depending on the country you’re talking about and their current economic and monetary situation, you could… introduce legislation that restricted CEO incomes to a maximum percentage greater than a companies lowest paid employee? … increase tax rates on large accumulated wealth sums over a certain threshold like trusts and superannuation? … Increase taxes on sources of wealth that aren’t direct wage income, which is how most wealthy make their money in the first place? … Criminalise price gouging by preventing a company from raising prices when they have posted a profit in the last financial year? Literally thousands of more sensible and effective things you could change that would have a positive impact on addressing wealth inequality.
Unfortunately monopolies, duopolies, partnerships, conglomerates, and similar, across so many of the essential goods and service markets means ‘perfect markets’ where competition drives prices down, rarely exist in practice. That’s not even mentioning all the other factors which work to drive inflation, like constant demand for endless growth. UBI doesn’t solve anything. These are systemic issues which require systemic change.
I’m all for systemic change, and UBI is one. What systemic changes do you have in mind?
There is an almost infinite number of models and policies a country could implement to address wealth inequality, and UBI would be at the bottom of that list in terms of effectiveness. UBI is not the tool for that job. Depending on the country you’re talking about and their current economic and monetary situation, you could… introduce legislation that restricted CEO incomes to a maximum percentage greater than a companies lowest paid employee? … increase tax rates on large accumulated wealth sums over a certain threshold like trusts and superannuation? … Increase taxes on sources of wealth that aren’t direct wage income, which is how most wealthy make their money in the first place? … Criminalise price gouging by preventing a company from raising prices when they have posted a profit in the last financial year? Literally thousands of more sensible and effective things you could change that would have a positive impact on addressing wealth inequality.
Those sound great! Thanks for sharing them.
UBI is meant to come from taxing wealthy people more.
Where it comes from is beside the point. It’s not a solution to reducing cost of living.