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Government The Almighty Buck

Universal Basic Income Gains Support In South Korea After COVID-19 (nikkei.com) 132

An anonymous reader quotes a report from Nikkei Asian Review: The debate on universal basic income has gained momentum in South Korea, as the coronavirus outbreak and the country's growing income divide force a rethink on social safety nets. The concept was thrust into the spotlight in the country when Gyeonggi Province Gov. Lee Jae-myung proposed a basic income of 500,000 won ($430) a year per person this year. He aims to gradually expand the figure until it reaches 500,000 won a month -- roughly the equivalent of South Korea's social welfare payments. An annual $430 payout means the program will cost $21.3 billion a year, which likely can be funded through budgetary adjustments. But a monthly $430 will cost $256 billion, which is over half the national budget.

"We cannot get to 500,000 won a month right now," Lee said. "But we can get there in 15 to 20 years by bolstering taxes on land, which is a public asset, carbon dioxide emissions from burning fossil fuels, and digital services developed using data we have produced." Basic income "will be a major topic in South Korea's next presidential election," Lee said. Lee is advocating distributing basic income in the form of a regional currency -- an experiment Gyeonggi Province already tested with coronavirus-linked assistance. Each resident received 100,000 won, about $85, in a regional currency, which needed to be spent in three months, allowing the entire sum used for the program to be recirculated back into the local economy.
"Fourteen progressive lawmakers submitted a bill last week that would create a new committee to discuss how basic income can be funded, with plans to start distributing 300,000 won a month in 2022 and at least 500,000 won a month in 2029," the report adds. "The lawmakers envision diverting some regional taxes to a special budget to fund basic income. Shortfalls could be addressed by streamlining redundant social benefits and reviewing tax relief programs."
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Universal Basic Income Gains Support In South Korea After COVID-19

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  • by c-A-d ( 77980 ) on Thursday September 24, 2020 @06:55PM (#60541616)

    “When the people find that they can vote themselves money that will herald the end of the republic.”

    I eagerly await the end result of this experiment.

    • So let's see: Medicare, Medicaid, SS, SNAP have killed the republic. Not.
    • by apoc.famine ( 621563 ) <apoc.famine@g m a i l . com> on Thursday September 24, 2020 @09:08PM (#60541862) Journal

      That was when money was a tangible item. Now it is not. We can just dump a bunch more 1s and 0s into the accounts of the mega-banks, and boom, more money!

      Now, I'm sure you'll whine about inflation, and that's definitely a concern. But what always gets largely ignored during any of /.'s heated debate on UBI is the fact that for the bulk of the population, it amounts to a short-term loan. That's not really something that has a massive impact on the country's finances.

      If it's funded in part through payroll taxes, I'd expect to get a $1k UBI credit on the first of the month, then lose $600 in each of my two paychecks later that month. (I make plenty of money, so I expect that I'll be paying more than I'm getting.) This really isn't going to drain the country of its money.

      Where UBI shines is if I lose my job, the first of the next month that $1k hits my bank account, and there aren't any paychecks to take it from. That's an instant lifesaver, at a speed that makes unemployment seem silly.

      There second place UBI shines is it gives people with no money instant liquidity. Poor people spend money. That is the economy. In study after study, we've found that the most effective form of social welfare is to give people money and let them spend it on what they think they need. The vast majority of people aren't drug addled deadbeats. They're folks who need a little help. They're a mom who needs car repairs, a dad who needs medicine, a fresh-eyed 20-something who has a business idea that won't make money for the first couple of years it takes to get established.

      Giving folks like this food stamps just doesn't address their needs. Give them $1k a month, and they'll spend it on what they need to get ahead.

      Ultimately, we need everyone engaged in the economy. When people fall out of the economy, it suffers. By concentrating all the wealth at the top, we've removed that money from the economy. Sure, it's in companies and the stock market, but it's not driving the economy the way retail shopping, home construction, travel, and restaurants do. In the economy, every time a dollar changes hands it tends to get taxed. Give poor people more money to spend, and they'll spend it. And that means more taxes collected, which means more money to fund stuff like UBI.

      That's like the antithesis of the stock market.

      • Where does 100 Billion a month come from? 1000 per month time 100 million families. And the minute you do this, the price of everything goes up 30%. Look at whats happened to prices since the stimulus. Ubi is a pipe dream
        • by jezwel ( 2451108 )
          Federal government budget is already 4 times your figure, and around half of that is on medicare and social security. The social security portion itself is 3/4 or more of your figure - the extra outlay is less than the growth from 2018 to 2019, so well within norms.
      • by rsilvergun ( 571051 ) on Thursday September 24, 2020 @10:56PM (#60542000)
        google "deflationary spiral" sometime. Human beings can and will just "shut down" our entire civilization and all progress. We did it for over 1000 years. It was called the dark ages and it sucked. If we don't do something we're heading for a second Dark Age.
        • by Locando ( 131600 ) on Friday September 25, 2020 @02:07AM (#60542274)

          WTF, it's as if Byzantium and al-Andalus never existed. Never mind that we can also recognize progress made outside former Roman territory, and count Arabia and Persia proper, the Gupta Empire, or the Tang and Song Dynasties... loci of technological innovation and imperial power shift, and people who study these things call bullshit on the whole notion of a "dark age" [wikipedia.org] (unless they're just referring to periods without much of a historical record).

        • by AmiMoJo ( 196126 )

          The fall of the Roman Empire and subsequent period formerly known as the "dark ages" had nothing to do with deflation.

          That period is no longer called the dark ages by most historians because we now understand the accomplishments of people during that time. Progress did not stop.

      • Now, I'm sure you'll whine about inflation, and that's definitely a concern. But what always gets largely ignored during any of /.'s heated debate on UBI is the fact that for the bulk of the population, it amounts to a short-term loan. That's not really something that has a massive impact on the country's finances.

        I guess you could consider it a short-term loan. But it's a loan that you don't have to pay back.

        That's what the entire concept of a UBI hinges upon. If people continue working and generatin

      • by Jamu ( 852752 )
        This. Currency is simply the lubricant for the economy machine. It's not a limited resource (as so many people seem to think). The only problem is getting it where it's needed and not flooding parts of the economy. UBI, by itself, is not a problem. It gets currency to the parts of the economy where it's absolutely needed. What it will do, however, is uncover the problems in other parts of the economy.
    • by Altus ( 1034 )

      Bob Marley said :
      "A hungry mob is an angry mob"

      I suspect he had more direct experience with his topic than Franklin did with his.

  • You're locked down. Can't spend any of it.

  • Basic Math (Score:5, Informative)

    by clonehappy ( 655530 ) on Thursday September 24, 2020 @07:13PM (#60541642)

    Let's try some... In the USA: 330,000,000 people

    Let's give them all $100 a month.

    330,000,000 x 100 = 33,000,000,000 $33 Billion a month.

    10 months = 33,000,000,000 x 10 = 330,000,000,000

    So, in a year, 396 Billion dollars just to give everyone a paltry $100 a month. A basic living wage is roughly $3000 a month for a decent suburban middle class lifestyle. So multiply that 396 Billion times 30. Lets say 400 Billion x 30 then. 400B x 30 = 12 Trillion Dollars

    So you somehow expect to find half the GDP of the USA just lying around under the couch cushions every year? You run out of other people's money awfully quickly, even if somehow you had only half the people getting UBI. Or even halved the UBI and kept it Universal. Especially when a not insignificant portion of the population now fails to produce anything at all. Seriously, how does anyone expect communism to actually work?

    "Take it from the rich" is what I usually hear. But even if you took the $625 billion away from the richest 5 people in the world, you get about 5% of the way towards one year of UBI just for the USA. Expand that out globally, there are over 7 billion people in the world. It just doesn't work.

    Change my mind.

    • by Sloppy ( 14984 )

      Seriously, how does anyone expect communism to actually work?

      How are we currently doing it? Just use whatever revenue source we're using now, and celebrate the reduced complexity and overhead. Between the stimulus checks, all the unemployment/FEMA hacks, PPP, etc we've basically been doing it for a few months, just less uniformly and more complicatedly.

      Of course you need to cut the $3000 into a third (a living wage ddoesn't need to be suburban middle-class style), but cutting 2/3 off the total still adds up

      • Re: (Score:2, Troll)

        by Rockoon ( 1252108 )

        Of course you need to cut the $3000 into a third (a living wage ddoesn't need to be suburban middle-class style)

        The left is very specific about this. A living wage is at least as much as a $15/hour job earns you. $30000/year assuming 2 weeks unpaid vacation.

        So yeah....

        The left is notoriously bad at math tho. Their math is 330,000,000 people, $1,000,000 each, costs $330,000,000. See? It barely costs anything to make everyone a millionaire, which is why they are so angry that they arent getting what they want and that it must be racism, and they are also retarded, the real reason they arent getting what they want

        • by kenh ( 9056 )

          The left is very specific about this. A living wage is at least as much as a $15/hour job earns you. $30000/year assuming 2 weeks unpaid vacation.

          We just paid every person collecting unemployment a full-time living wage when we sent out $600/week stimulus checks to them ($15/hr x 40 hrs/wk = $600/wk) without doing anything... How long until they have a convincing argument that people that actually do things should get the same $15/hr as a federal minimum wage?

    • those that support UBI think the maths is going to magically solve itself, some even believe that if it just replaces the current social security it easily covers it (despite the maths easily demonstrating this isn't even remotely true.) UBI is an interesting concept, I am yet to see any model that is remotely feasible when scaled up.
    • by Cyberax ( 705495 )

      A basic living wage is roughly $3000 a month for a decent suburban middle class lifestyle.

      The Federal minimum wage is around $1200 per month. If you have two adults working full time, it's $2400. And you should look at the number of working-age people in the US, not the total population. It's 130 million people.

      So if we give every qualified worker $400 a month that would work to $624 billion per year. For comparison, the defense budget is $704 billion. The GDP of the US is $21 trillion, so that $624 billion is just 4% of it.

      From purely numbers standpoint it works out.

      • Let me get this straight....

        You want to give out $400/month...

        ...but not to any of the people that most need it.

        You want to specifically give it to the people that least need it... the people with gainful employment.
        • Re: (Score:3, Interesting)

          by Cyberax ( 705495 )
          That's the idea of the UNIVERSAL basic income. You always get that amount of money, not matter what. This also removes disincentive to work (if it even exists), because if you are employed then your income WILL go up, no matter what.
        • by kenh ( 9056 )

          "working age" "people with gainful employment"

          There are many working age people that aren't working. He's simply pulled out retirees and children.

      • by kenh ( 9056 )

        Quote>So if we give every qualified worker $400 a month that would work to $624 billion per year. For comparison, the defense budget is $704 billion. The GDP of the US is $21 trillion, so that $624 billion is just 4% of it.

        From purely numbers standpoint it works out.

        No, it doesn't.

        The federal budget is $4.79 Trillion, it's 13% of the US budget.

        • by Cyberax ( 705495 )
          The grandparent was claiming: "So you somehow expect to find half the GDP of the USA just lying around under the couch cushions every year?". I've shown that the UBI payments won't make a dent in the GDP. It's more complex from budgetary standpoint, but not entirely impossible.
          • No you have shown a very small insignificant UBI that will not come close to providing a minimum to live will have a very real impact on the US government spend (in the order of 16% of the revenue the US government collects). Incidentally 4% of GDP is a bloody big dint in the GDP. to provide people with an actual useful level of UBI it is not going to cut it to supply $400 a month in the US.
      • There is a problem that skinflint employers will pay their workers less, if they know wages are subsidised. Which means the benefit goes to the employers, not the workers.

      • The Federal minimum wage is around $1200 per month.

        The federal minimum wage is irrelevant to this discussion because it is not a living wage. It has not kept up with inflation for something like three decades. If it had, it would be over $15/hr. If it had kept pace with increases in total executive compensation, it would be over $30/hr. The wealthy are robbing us of our lives in exchange for chicken scratch.

    • Let's try some... In the USA: 330,000,000 people

      330 million is the entire population, but there's no reason to give UBI to minors ("Minors not miners!" ... "You lost me."). According to a quick Google query, the "adult" population of the US (18 and over) is 209 million. I'm sure we can whittle it down a bit for other dependents, like still in college, etc... But in any case, you're right, it would be a big number.

    • >Change my mind.

      Okay

      Please redo the maths by removing the following people.

      1) 1%ers get the UBI payment but immediately have to pay it back in tax. Please remove them from the 330 million US population.

      2) Average workers get the UBI payment but immediately have to pay it back in tax. Please remove them from the 330 million.

      3) Unemployed workers can get the UBI or the current dole. Since UBI is less than the Dole. Please remove them from the 330 million.

      4) The prison population (0.7% in the US) costing an

    • Of course it wouldn't work in the USA, nothing can work in the USA.
    • by rsilvergun ( 571051 ) on Thursday September 24, 2020 @10:55PM (#60541996)
      But that's not how UBI works you end up taking it back via taxation as a person's income rises. UBI is a floor nobody falls below. It's a wealth distribution scheme used to keep capitalism going in a post Automation world. The only alternatives I know are full on socialism (the real stuff, as in Marxism) or a dystopia where the 1% have everything and everybody else crawls in the dirt like worms.
      • by AmiMoJo ( 196126 )

        Marxism relies on capitalism to work, i.e. it won't work in a post-automation world. It doesn't help the workers if they own the factory when the one next door full of robots makes the same commodity products for a fraction of the cost.

        Having said that there is so much disagreement over exactly what capitalism and socialism mean in Marxist terms I suppose you could argue it.

    • by cusco ( 717999 )

      What, half the price of the military budget, which contributes next to nothing? Sounds like a deal to me.

      • by kenh ( 9056 )

        What, half the price of the military budget, which contributes next to nothing? Sounds like a deal to me.

        Do you have any idea how many people depend on the military spending to feed their families? Here's a mental exercise - eliminating the defense spending puts every soldier out of work, along with every private contractors on military bases, along with every defense contractor, plus everyone that supplies materiel to those defense contractors, plus every landlord that rents them housing, plus everyone that sells them food (gorcery stores and restaurants), etc.

        • by cusco ( 717999 )

          Salaries and benefits for our grotesquely bloated military is less than a quarter of the Pentagon's official budget, and most of those people would much rather be doing something of benefit to society. The military has one of the worst multiplier effects of anything the government does, put that money into NASA and you see a 7 to 1 return instead of 2.something to 1. At 7 to 1 the government is also now making money off taxes generated by the additional economic activity to boot.

        • Do you have any idea how many people depend on the military spending to feed their families?

          Yep, and it's disgusting. They're basically already on welfare with the caveat that corrupt military contractors get a cut and the welfare recipients can be sent off to die in stupid wars. Less military personnel+contractors is a good thing. They don't really produce anything of value for society. Theoretically they'd be given UBI checks and a wide open work schedule, so they'll be fine.

    • by kenh ( 9056 )

      A basic living wage is roughly $3000 a month for a decent suburban middle class lifestyle. So multiply that 396 Billion times 30. Lets say 400 Billion x 30 then. 400B x 30 = 12 Trillion Dollars

      Question - so you want to award every woman that chooses not to abort their child $3,000/month for 18 years? That's going to hurt Planned Parenthood's revenue stream...

      You have redefined the "basic" in Universal Basic Income to mean "a decent suburban middle class lifestyle".

    • UBI is the liberal version of conservative heaven. It's just as much of a religious movement. People on the right believe that some deity will provide them heaven, people on the left believe "the rich" will pay for UBI.

      In the USA as much as 47% of all individuals pay no federal income tax whatsoever (I'd provide a link to source, but don't want to argue over credibility, so google it and find the source you trust to verify). That means in the US the upper income half is already supporting the lower half of

  • by hdyoung ( 5182939 ) on Thursday September 24, 2020 @07:18PM (#60541646)
    I'm not really a fan of UBI as an idea. I much prefer capitalism. But I see it coming to the US in a very roundabout way.

    First, other countries try it out, work out the kinks, and figure out how to make it effective.

    Meanwhile, The republicans pack the court with 5 partisan justices. Roberts has lost all control Come election day in November, it looks like Trump initially wins because democrats are MUCH more likely to vote by mail. That night, the numbers look in Trumps favor. Trump declares all mailed in votes fraudulent, declares victory, and orders all mail-in vote counting stopped. The republicans back him because.. well, that's what they do. It goes to the supreme court which issues a 5-4 ruling in his favor. Roberts objects but he's lost control. Millions of legitimate votes go uncounted.

    Fast forward 4 years. Republicans are happy but 55% of the public has lost faith in democracy at the national level. The ACA is dead. Nobody with a pre-existing condition can get health insurance. Social security is privatized. Medicare is cut to the bone and medicaid doesn't even exist anymore. People are starving to death and dying in the gutters due to medical conditions like during the victorian era. Roe v. Wade is dead and all all reproductive health choices are made by the states. Abortion is illegal in about half the states and about a third of the states have straight-up outlawed birth control. Taxes are cut to the bone but spending on the military has ballooned. Exploding deficits are causing inflation and interest on the national debt is skyrocketing, making it impossible to sustain. The only two options: default or mass-scale money printing followed by a period of hyperinflation. It becomes clear that the US is no longer the world leader, taken down by self-inflicted wounds. Massive numbers of productive, educated people and professionals are leaving for Canada, Europe, and elsewhere. Most of the wealthy people have decamped for other countries and taken their fortunes with them. Capital controls are put into place in order to deal with this, ending the long run of civil liberties enjoyed by US citizens.

    If recovery is even possible, it takes generations for the US to get back what was dismantled. And recovery isn't guaranteed. The collapse of the USSR has shown this - once the productive, educated and wealthy people flee, the recovery takes over a century.

    Eventually, some long time down the road, society takes control back from the conservatives. But, like everything in history, when the pendulum swings it goes in the other direction. Having given conservative rule a try and watched it fail, the country gets behind socialism and stuff like a UBI.

    I'd really rather not see this come to pass, but I'll give it a 50/50 chance. We're right on the edge of real trouble like we haven't seen since the 60s.
    • This is a dark picture you're painting and you'll probably get down-modded to oblivion.
      That said, I agree with you that we are at a junction in history where we should think harder than usual about the coming elections and how the future will be affected by the outcome.
      • Re: (Score:2, Insightful)

        by hdyoung ( 5182939 )
        Yeah. I'd say there's a 50/50 chance that I have to go into "silent mode" after this election just to survive.

        Honestly, I just hope that whoever wins, it's a landslide. If it's Biden, it needs to be so overwhelming that the right-wingers have no choice but to accept that society gave them the middle finger. If Trump wins, it needs to be decisive enough that we, as a country, have absolutely nobody to blame except ourselves for the outcome. A close election will be VERY bad this time around.

        Yes, t
        • According to polls at the moment, Biden has a slim lead. By slim, it's looking like 4 or 5 percent ahead, possibly less depending on which state you're looking at.

          That margin may play out in the actual vote, but polls aren't always an accurate predictor. And even so, polls that close don't scream landslide. It's close enough that it wouldn't be completely unreasonable to assume the electoral college could swing the opposite direction of the popular vote again.

    • I'm not really a fan of UBI as an idea. I much prefer capitalism.

      Which economic system do UBI recipients spend their money in? I'm glad you said this upfront so I knew not to read the rest of your long post.

    • "but spending on the military has ballooned"

      What makes you think Biden will spend less? According the news 500 senior military brass want Biden in the White House. They are not backing Biden to shrink the military industrial complex.

      By the way, it was the Democrats threatening to pack the court, which means add extra justices, all hard left, until the decisions go their way. Franklin Roosevelt made that same threat, and one middle of the roader shifted his presumed vote on a couple of important cases to pre

      • You're behind the times on history. Things shift. The republicans were the party of Lincoln and the democrats were the party that all the slavers loved. Things flipped somewhere around the 1960s.

        The same thing happened regarding fiscal responsibility in the 80s. The republicans used to be the "low taxes and small government" while the democrats were "high taxes and large government". They offered different visions of government but ultimately both were fairly good about balancing spending vs taxation.
        • by kenh ( 9056 )

          You want fiscal responsibility? There's only one game in town, and it's the Dems.

          Question: Which party was it that kept the federal government shut down until they got an extended national debt ceiling vacation of TWO YEARS?

          Answer: It wasn't the Republicans. [forbes.com]

          • You don't seem to understand this debt ceiling thing. It's an arbitrary political football. It doesn't actually prevent taking on more debt. It just causes us to default if the ceiling is reached. Here [wikipedia.org], read up.
      • What makes you think Biden will spend less? According the news 500 senior military brass want Biden in the White House. They are not backing Biden to shrink the military industrial complex.

        They are backing Biden because he is not Trump.
        No need to over-complicate things.

    • I recall an interview with Pelosi when Obama was elected, heralding century of Democratic rule.

      The hubris was palpable.

      I see the same coming from the right, of the Providence of Trump and the new GOP.

      "In the end? Nothing ends, Adrian. Nothing ever ends"

      • You really don't see these times as any different? I'm old enough to remember Bush junior, and then Bush senior before that, and I'm just barely old enough to have been politically aware during the Reagan years.

        So...... you feel that Trump is pretty much the same as other republican presidents? No. I completely disagree. Neither Bush nor Reagan talked like this. I NEVER thought any of those presidents were threats to democracy. Even during the height of the Gore/Bush election where the supreme court ha
        • by kenh ( 9056 )

          And Gore took it like a man, conceded, wished his opponent well and urged the country to unify behind the leader. THAT'S leadership.

          Seriously? Gore waited 6 weeks to concede - Gore conceded December 13th [history.com] - after he exhausted all conceivable (and frankly several inconceivable) challenges to the election results in a certain county in Florida.

          Are you going to give Trump six weeks to concede and then hold him up as an example of "leadership"?

    • by kenh ( 9056 )

      You lost me at:

      Trump declares all mailed in votes fraudulent,

      How does that happen? When did Trump suddenly become a dictator? States, not the Federal Government run the elections, the President can not simply declare votes valid or invalid. If the President could do that, the 2000 Gore v. Bush election might have looked a little different.

      Walk me through the legal process that enables Trump to declare all mailed in votes fraudulent...

      • by mark-t ( 151149 ) <markt.nerdflat@com> on Friday September 25, 2020 @02:44AM (#60542306) Journal

        Walk me through the legal process that enables Trump to declare all mailed in votes fraudulent...

        Since you asked, Trump will declare that the fraudulent mail in votes are a threat to national security, and use that loophole in the constitution to enact whatever he wishes to correct it, because the national security excuse provided for in the constitution does not actually have any checks or balances on it to ensure that some real threat to national security actually exists, the threat apparently only needs to exist to best understanding of the president.

        Trump has used and abused the "national security" excuse on multiple occasions during his presidency already where it had no basis in objective reality, and there is every chance that he will do so again on election night unless he has the popular majority.

      • The process is this. Trump orders it. Republicans support him. The stacked supreme court declares it lawful. Right wingers scream about defending democracy from librul election stealers. The rest of society gives up on trusting democracy. We follow the route to decline pioneered by the ussr. In that order.
    • I'm with you on this dark future, except I don't see Roberts as having lost control. I think push comes to shove, he realizes what hangs in the balance and lets the election run its course. Also, in my version of this, if Trump steals the election, CA splits off and forms its own country, taking something like 20% of the US GDP wtih it, and the collapse of the dollar comes almost immediately after that.
      • With the incoming conservative supreme court justice replacing Ginsberg, it's a 6:3 split in favor of conservatives. At that point, Roberts leadership no longer matters. The other 5 conservative justices rule the roost. Roberts could go all-liberal and it wouldn't matter.
  • Hang on a second, I thought those taxes were supposed to go to offset the pollution, not to finance more people to pollute (which will happen, UBI is more than likely going to result in population explosion)? And what happens when companies go green and stop burning fossil fuels, you're going to blame those green companies for sinking UBI funding?

  • by misnohmer ( 1636461 ) on Friday September 25, 2020 @03:24AM (#60542354)

    Promising UBI is just a way for politicians to grab some votes. It's completely unachievable, but most people cannot do the basic math to realize that. Let's assume $3,000 per month per person in the US, so a politician promising such UBI is pretty much saying "every US citizen will get $3,000,000 from the government at birth". If the same politician came out with "vote for me and everyone will be a millionaire", they would get laughed out of the election, but somehow promising UBI, which is mathematically more ridiculous, doesn't draw anywhere near the same response from the populous enamored with the utopian idea.

Love may laugh at locksmiths, but he has a profound respect for money bags. -- Sidney Paternoster, "The Folly of the Wise"

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