atans1

Finland is doing an experiment that could discredit a Hard Truth or confirm it

In Uncategorized on 20/12/2016 at 5:40 pm

A Hard Truth is that welfare is bad because people will stop working if there is welfare.

Well according to the NYT Dealbook,

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Finland is about to embark on a social welfare experiment that will test not just economic policy, but also human nature.
Jobless people in the country cannot earn additional income while collecting unemployment benefits. So for some laid-off workers, a guaranteed unemployment check is a better financial proposition than taking a leap with a new job or business.
The government wants to see if it can change that.
It is giving 2,000 unemployed people a universal basic income — automatic benefits, minus the bureaucratic hassle and penalties for amassing extra income.
Will these people set themselves up on new career paths once they are liberated from the time-sucking unemployment system? Or will they squander their money on vodka?
We will see as the trial progresses over the next two years.
Many will be keeping an eye on the results. The search for a way to lessen the vulnerabilities of working people who may have been affected by globalization and automation is gaining a sense of urgency as reactionary populism sweeps the globe.
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  1. It all depends on how they size & quantify the basic income or living wage or whatever you want to call it. If it just provides for renting a shitty apartment in a shitty neighbourhood and meals consisting of bread & peanut butter or plain rice with soya sauce, then yes, people will be motivated to earn extra income.

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