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Government United States

America's Largest Universal Basic Income Program Yet Proposed By Mayor of Los Angeles (msn.com) 275

The mayor of Los Angeles is proposing the largest universal income pilot program in America, saying he hopes the program will "light a fire across our nation."

Newsweek reports: Los Angeles Mayor Eric Garcetti has proposed giving a "universal basic income" of $1000 a month to 2,000 poor local families for one year... The program would give 2,000 families below the federal poverty line monthly $1,000 checks for 12 months. The families could then spend the money however they please.

Garcetti said he hopes the program could provide a model for similar anti-poverty initiatives in other cities. "We have to end America's addiction to poverty..." Garcetti told LAist, a local news site affiliated with Southern California Public Radio. Similar programs are also being floated in at least four other L.A. county districts, according to the Los Angeles Times...

If approved, Garcetti's program would be at least the 12th time that a U.S. region has offered a basic income to its citizens.

Bloomberg notes that Los Angeles "will be the recipient of more than $1.3 billion in federal stimulus funds from the recently passed American Rescue Plan, which could be used to fund the payouts." Garcetti, a Democrat in his second term, is co-chair of Mayors for a Guaranteed Income, which has been advocating for the policy at the federal level and funding local programs. The group, which has 43 elected officials as members, was founded last year by then-Stockton-mayor Michael Tubbs. It has received $18 million in seed money from Twitter Inc. co-founder Jack Dorsey as well as $200,000 from Bloomberg Philanthropies, the charitable arm of Michael Bloomberg, founder and majority owner of Bloomberg News's parent company.

California cities have been taking a lead with these programs... In San Francisco, grants and some revenue from hotel taxes will fund monthly payments of $1,000 to about 130 artists for six months beginning next month. Organizers said the pilot is the first to solely target artists. Oakland will tap private donations this summer to fund its guaranteed income program, providing $500 monthly to about 600 poor families.

Still, a majority of Americans oppose the federal government providing a guaranteed basic income, according to a survey last year by the Pew Research Center...

Ultimately the costs of such programs will be too big for cities to finance alone, he said. But with data proving it works, Garcetti said states and the federal government could be inspired to fund them.

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America's Largest Universal Basic Income Program Yet Proposed By Mayor of Los Angeles

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  • Not UBI (Score:5, Insightful)

    by mccalli ( 323026 ) on Saturday April 24, 2021 @10:43AM (#61308680) Homepage
    "The program would give 2,000 families below the federal poverty line monthly $1,000 checks for 12 months."

    So by definition, it's means-tested. It's normal benefits and welfare, not UBI.
    • It's a way for officials to wash their hands of social programs. They can pat themselves on the back for giving people agency in how they choose to spend the assistant money. But ignores the economics that an individual spending on necessities pays retail prices while a large organization can cut out the middle man and spend more efficiently with bulk purchasing and distribution.

      And the dumbest part about fake UBI is where people get some amount that is enough to solve one problem they face. But not any of

      • Welfare seems pretty dumb to me. Support people, but if they get a job stop supporting them right away. Don't know how you could support that over UBI.
        • by Entrope ( 68843 )

          Programs like that need to phase out smoothly as a function of income, so that there aren't sudden effects where you earn an extra $100 but lose $500 in benefits. That is really hard to arrange with lots of different benefits programs, because different people will qualify for different programs, and it's hard to figure out -- much less coordinate -- a good phase-out across them.

          That coordination problem is the biggest argument in favor of a UBI that replaces all other benefits: It can be relatively simple

        • but if they get a job stop supporting them right away.

          Yours is a quick way to waste public resources and stress people out unnecessarily. Letting people who are earning but below the poverty line yo-yo between employed and unemployed because they can't afford food and rent and childcare while working.

        • Welfare seems pretty dumb to me. Support people, but if they get a job stop supporting them right away. Don't know how you could support that over UBI.

          Corporate welfare eclipses what the people get. Yet, it’s the latter that the masses are most outraged about.

          Thing is, you only own what you can protect, and cutting off the poor would mean that, in very short order, the wealthy would own less and less as the throngs of poor stopped begging, and started taking shit.

          Welfare is as much for the rich as i

        • Because they both do the exact same thing except the UBI is trivial to implement. Determining who is eligible for welfare is a pain in the ass. Sending everyone $1k/month is easy. Payroll taxes are easy.

          The simplistic way to explain this at a level you'll understand is that you send everyone $1k every month, and you tax their payroll $1k every month. If they get paid more than that, they effectively don't get a bonus from UBI. If they get paid less than that, they're on a sliding scale from $0 up to $1k if

      • by kenh ( 9056 )

        And the dumbest part about fake UBI is where people get some amount that is enough to solve one problem they face. But not any of the other problems. Do you spend $1000 on rent, food, or medication. Pick any two (or one if you live in L.A.). $1000 seems like a lot, but it's substantial less than I received through unemployment insurance 20 years ago when purchasing power (lower rents) is taken into account.

        Remember this $1,000 supplement is on top of any and all current assistance programs.

    • Good point. The whole point of UBI is the escape from the welfare model: monthly assistance will not be cut off if you make more. Also interested on the effect on middle class family. Dad keeps working , but Mom goes back to school or starts a business? That is supposed to be a productivity booster for increased tax revenue.
      Also, why aren't they experimenting with UB specifics? UB health, UB housing assistance, UB food. Jobs prevent alcoholism, that whole rock bottom thing is not there when you have cash ev

    • Exactly.
      UBI is a massive troll-meme anyway. It would wreck entire national economies, and destroy productivity.
      • by kenh ( 9056 )

        We have 320 Million citizens in the US - if we gave every citizen $1,000/month, $12,000/year works out to $3.84T/year.

        As soon as you start shaving off income levels, you eventually wind up looking at the Federal Poverty Level as a useful cut-off, and it turns out there are probably about 10% of Americans live under the FPL [census.gov], so that comes out to $384BN/year. Where are we going to find that $384BN/year?

        • Re:Not UBI (Score:5, Interesting)

          by ThomasBHardy ( 827616 ) on Saturday April 24, 2021 @02:22PM (#61309416)

          I haven't gone back through any of the more recent proposals, but as the earlier plans outlined it, the money comes from a combination of factors. With UBI, you cease wellfare, and unemployment, housing assistance, food programs. Some of these are very large cost centers that also have high degrees of cost associated with managing the programs. Essentially all forms of government assistance halt and the UBI covers all of them.

          From a google search:
          In FY 2020 total US government spending on welfare — federal, state, and local — was “guesstimated” to be $$1,203 billion.

          2019 Unemployment benefits cost: $520 billion

          Federal expenditures for USDA's 15 food and nutrition assistance programs totaled $92.4 billion in fiscal 2019

          Now obviously the number would go up from your suggested 10% when you include unemployment as people above the poverty line do use that program, but if the amounts paid by it are capped at the UBI level, it would have some interesting effects on the total amounts being paid out.

          That's just a few items, and there are a large number of other factors and programs to evaluate of course. Just referencing some of what I'd read a good while back.

    • by Striek ( 1811980 )

      You'd think by now after god knows how many "Universal Basic Income" pilots, that people would have figured out the "Universal" part. But no. Each and every time, it goes only to the poor.

      We will never know how effective, or how economically feasible a UBI can be, at least through a pilot, until subjects are chosen randomly, and not based on income.

      Every other pilot program simply confirms the obvious: giving money to poor people will, on balance, improve their lives for the better. I just find it incredulo

      • by narcc ( 412956 )

        Okay, basic science time...

        This is not a correlational study. They are not interested in how this group is different from other groups. This study is interested in how one specific group will spend extra guaranteed income.

        In this case, it doesn't make sense to take a random sample from the entire population. Here, they're taking a random sample from a specific population.

        I'll repeat that for you: This study is using a random sample. It's just not the kind of study you think it should be.

        If you think

  • Prohibition, started by a self-described "progressive" temperance movement, was supposed to end poverty too.

    The road to hell is paved with...how does it go?

    • So people were wrong about one thing years and years ago so we shouldn't do anything?
      • So people were wrong about one thing years and years ago so we shouldn't do anything?

        We should be skeptical about people hyping easy answers to complex problems.

        Solutions should be tested and verified by objective researchers before being scaled up.

        The test described in TFA is not objective, is not even real UBI, and has no predetermined criteria other than to "light a fire across our nation," whatever that means.

      • So people were wrong about one thing years and years ago so we shouldn't do anything?

        Both the temperance movement and the UBI movement are doing the same thing: Making bad assumptions about what poverty actually is, and then assuming that their answer would work if only we forced it on everybody.

        The UBI people just assume that poverty is strictly a money problem, and that if we just give people money then it goes away. This is beyond ridiculous -- for one, they're completely tossing out the idea of purchasing power. All that UBI will do is lower the purchasing power of the money that we alr

        • by narcc ( 412956 )

          All that UBI will do is lower the purchasing power of the money that we already have

          That doesn't make any sense. A UBI doesn't increase the money supply, it just distributes it differently.

      • by kackle ( 910159 )
        A policeman walking the night beat comes across a man on the sidewalk on his hands and knees. The cop asks the man what he's doing. The man replies "I'm looking for keys that I lost over there." The cop says "If you lost them way over there, why are you looking here?" The man replies "Because the light is better over here."

        Handing out "free" money (it isn't free, you know) has so many problems, and more as time goes on. I think the solution is 'somewhere else', which is why it'll never be found by t
        • Handing out free money injects it into the economy immediately and directly because poor people need to spend it right away on necessities.
          • by narcc ( 412956 )

            That's a good point. Moving money makes an economy. If it's pooled at the top, it isn't moving. Putting it at the bottom is the quickest way to get it moving through local economies, supporting local businesses, and creating jobs.

      • So people were wrong about one thing years and years ago so we shouldn't do anything?

        Um, hey, I don’t wanna be the one to, you know, have to tell you this, but we drew straws and I got the short one.

        So, yeah um :

        Slavery
        The KKK
        Jim Crow’
        The whole “Civil War” thing
        Eugenics
        Snubbing Jesse Owens (even Hitler gave him a little wave, yeah Hitler, Motherfucking HITLER!)
        Opposing the Civil Rights Act
        Opposing the ERA
        Making up the majority of public officials found guilty of corruption
        Alec Bald

  • by alternative_right ( 4678499 ) on Saturday April 24, 2021 @10:47AM (#61308690) Homepage Journal

    The bureaucracy always wants to make itself more powerful, like everything else in this world. If it gives away money, it gains power several ways: first, it decides who cannot get the free money, so you had better be nice to the bureaucracy or you'll lose out; second, it grows in size to administrate this giveaway; finally, it sabotages the successful in order to give to the struggling, which makes the successful (finally) need the bureaucracy as well. All are humbled, all must serve.

    In case you haven't caught up with the past 300 years of human history, "equality" always means taking from the succeeding to give to the struggling, and never ends well.

    • Your signature link is broken
    • by Actually, I do RTFA ( 1058596 ) on Saturday April 24, 2021 @11:55AM (#61308888)

      Hmm... I would have thought unconditional money to everyone (UBI) would remove bureaucratic discretion and power and shrink the bureaucracy because you no longer need an unemployment administration ensuring people are applying for work.

      That's why I'm still a fan of the Bourbon dynasty. King Louis Forever.

      • Hmm... I would have thought unconditional money to everyone (UBI) would remove bureaucratic discretion

        RTFA. This project is not "unconditional money to everyone".

      • by CrimsonAvenger ( 580665 ) on Saturday April 24, 2021 @12:15PM (#61308966)

        Hmm... I would have thought unconditional money to everyone (UBI) would remove bureaucratic discretion and power and shrink the bureaucracy because you no longer need an unemployment administration ensuring people are applying for work.

        And you're probably right. The thing to remember is that none of the "UBI experiments" actually do a UBI. Picking 2000 families to hand some money to isn't "U", and since it's only going to last one year, the people receiving it are going to treat it like a windfall, NOT like a UBI.

        If a nation wants to give a UBI a go, they need to give the money to everyone, and they need to do it for a long time (and by "long", I mean 50 years+). Then see how things work out over the next half century or so...

        But these "give it to a few select people" for a "predefined short time" won't prove anything about the viability of a UBI, since people are going to react differently for "I got lucky for a year" than they would for "this is the new norm forever"....

        • That's a very true critique of this experiment. It is worth noting that some places have had a UBI, and it seems to produce a positive effect.

      • by kackle ( 910159 )
        Until they over-spend their allotment. Americans don't ever over-spend, do they?
    • In case you haven't caught up with the past 300 years of human history, "equality" always means taking from the succeeding to give to the struggling, and never ends well.

      Actually, the countries with the happiest inhabitants, the healthiest inhabitants, that are the most economically successful, and score very well on a number of such metrics have the highest degrees of income redistribution in the world. Correlation does not equal causation, but your claim that such redistribution 'never ends well' must be false given that reality.

      Looking at the history books, one of the periods of greatest growth for the USA was after WW2, also a period of really high tax rates. Again, cor

  • Not a real UBI (Score:5, Insightful)

    by fred6666 ( 4718031 ) on Saturday April 24, 2021 @10:58AM (#61308720)

    UBI by definition increases the taxes on everyone in order to be able to give a fixed amount to everyone.
    In this case they are giving money only to some poors, and everybody else is paying for it. Of course any program paid by millions of tax payers to fun 2000 poor families is going to be a "success". It doesn't mean it scales.
    What would be the tax rate if they expanded this program to the whole state or country? And more importantly, what would be the consequences of the added tax? Would people work less? Take less business ventures risks?

    This trial, like other small scale UBI trials, is not going to answer any of those questions.

    • by Jzanu ( 668651 )
      The purpose of a UBI is to enable the pivot points in the lives of individuals. The claim of equal opportunity does not exist without some point where it is possible to pursue opportunities equally. Economic growth will follow the increased availability of consumer cash, functioning as liquidity and fuel for commerce rather than inflation which is currency growth without corresponding growth in commerce. This trial is a proper test of finding where that pivot point exists in the most responsive setting, giv
      • This trial is useless. I can already tell you the conclusions: the poors with an extra $1000/month have more to spend than those without it.

        UBI is supposed to replace other programs (social security, unemployment income and others). Not be an other extra source of income. Those programs are often criticized because they create incentive for not finding a job, unlike UBI. If you keep them, your UBI trial is pretty much worthless.

      • I think we have already pivoted to inflation with all the current juice that has been added to the economy. Housing prices are up about 10%, transportation, ditto, and for the last year I've noticed a distinct upward trend for food. Certain things like lumber have skyrocketed. 2x4's have close to doubled in price. The only mystery I see is why is CPI so low. Whoever figured out that formula is a genius for saving social security benefits.
  • Its free money (Score:4, Insightful)

    by UID30 ( 176734 ) on Saturday April 24, 2021 @10:59AM (#61308722)
    The program is literally giving away free money to 2000 very lucky individuals. Any actual model of UBI has to come with a collection of funds from the participants to reflect how the government is going to pay for the funds they distribute. If the federal reserve were to just print the money to be distributed for UBI, the result (in large) would be inflation.

    Along those lines, any city could test UBI fairly easily with almost no startup capitol. Just impose an extra sales tax, collect those funds, and re-distribute them "fairly" to the citizens. Likely results will be
    - People will drive to the next closest city to shop.
    - Increase in the number of "citizens" as reflected by an uptick in postal boxes in use.

    Incidentally, the same results will happen if a national VAT is imposed to pay for a national UBI ... shopping across the border in Canada and Mexico will increase, and there might even be a bit more of an opportunity for a black market of everyday use items. Imagine the dark web being used to buy contraband toothpaste from Canada. Good times.
    • the word you're probably looking for is: socialism. Many, many people want socialism to take hold.

      Personally I don't care about it either way, there are benefits in each direction. Really what I want more: for people to use correct terminology.

      I just want people to say what they mean instead of dancing around the damn issues.

      • If the correct terminology of UBI is "socialism" where is the worker control of the means of production? What is getting de-commodified?

      • the word you're probably looking for is: socialism.

        Socialism means government/worker ownership of the means of production.

        UBI is not socialism.

      • The word may be socialism, but that term holds a negative connotation as many people confuse it with communism. So sometimes the best thing to do is just give it a new name.

    • Re:Its free money (Score:5, Insightful)

      by Miles_O'Toole ( 5152533 ) on Saturday April 24, 2021 @11:26AM (#61308806)

      Trump, Obama, Clinton and Bush Junior all enacted legislation that directly led to massive increases in the national debt and the national deficit in order to line the pockets of their billionaire donors. I bet you didn't have one single word to say about "how the government is going to pay for the funds they distribute". Why the sudden concern now over a comparatively minuscule expenditure?

      And if you knew anything at all about economics (which you obviously don't) you'd know that the inflation you're so terrified of has already been occurring. It has been taking place in the financial markets as near-zero interest rates have allowed investment banks (among others) to borrow money virtually for free and use it to inflate their stock prices while protecting themselves from the consequences of bad investments, and corporations to manufacture goods that sold poorly without paying a price due to the distorted market.

      By the way, there's quite a bit of that shopping in Canada you seem so concerned about. Before COVID it was common to see busloads of American seniors cross the border to shop for medicine they needed but couldn't buy thanks to the sweetheart deals your government has made with the pharmaceutical giants. Because of where I live, I have seen that with my own eyes.

      • I was not for the tax cuts of shrub or drumpf. But giving 1000/month to even 10% of the US is unsustainable. Two bad ideas do not make a good one. The better idea is to increase taxes on the wealthy to start paying down all this debt we have printed. Inflation is coming, in a not nice way. Cars have bumped up around 10% this year and so has housing. Those are two major expenses for most people and 10% is huge.
      • by UID30 ( 176734 )
        Anybody alive can see that inflation exists. It really doesn't take a genius to see. And for the record, I've always been, and will continue to be, a small government guy. The less governments interfere with our daily lives, the better. And no, a national UBI will not be a minuscule expenditure ... try somewhere between 15-20% of the national GDP (depending on your definition of "universal"). It will literally cost more than the government takes in from income taxes annually (please, run the numbers in
  • Basic income from a restricted lottery is not "universal" in any sense.

    We already know this works at this scale. More experiments aren't producing useful research. They are just created local free lotteries for the poors.

    • And the politicians will have lifelong voters for generations.
  • by joe_frisch ( 1366229 ) on Saturday April 24, 2021 @11:30AM (#61308822)
    To do a fair test, they should take a group of people and provide basic income entirely from extra taxes paid by that group. Any scheme that adds outside money to an area isn't really fair - that will always make things better.
    • Fair enough. But then they should only spend it on businesses that are built, owned and operated by people that receive said money, and that are working only with materials from such businesses. And all tax money they pay should only be used for public utilities, schools, police etc for people from the program. This is to prevent syphoning off of UBI money via taxes and shopping.

      Or otherwise it isn't really a closed system, is it? It's more like a semipermeable membrane system preventing money in, but allow

  • People who are financially disadvantaged should be supported, but it would be best if they:
    1) contribute back to society like a job or something, I also recognize that some can't do this because of disability (they are those who need the most support)
    2) not waste the money (like drugs or gambling)
    3) improve their situation and families situation

    I'm sure many people who get money will do good with it.
    Otherwise don't use my hard earned dollars from taxes, if the rich want to do this they can.

  • by backslashdot ( 95548 ) on Saturday April 24, 2021 @11:56AM (#61308892)

    UBI should be paid for by taxing robotics/automation. It's a win-win. People won't be angry at robots "taking their job" because they'll be "taking the robots salary." Think about it this way, if you get paid $100 for hammering in a CPU into 100 laptop in one hour .. if a robot takes over that job .. and can do 1000 widgets in one hour.

    Now follow this carefully ... because of "robot+UBI law", two things can happen:

    1. You will be part owner of the robot .. so you can still get paid your $100 every hour. But instead of working, you can watch Netflix, study goat rearing, or whatever.
    2. Because of the robots, the cost of laptops will reduce since it can produce more laptops. Therefore with your $100, laptops will be cheaper to you, and you can buy more things.

    As long as we do UBI, robots are a good thing. They will increase the value of everyone's money. They can build stuff without causing long term health issues and will allow people to work less while still getting paid.

    Yes the whole scheme collapses if we don't have UBI law .. just like without robots and automation plus labor laws you have child labor, sweatshops and slavery. Solution for the future UBI + robots. Neither will work without the other, but together it's exponential.

  • by Babel-17 ( 1087541 ) on Saturday April 24, 2021 @12:04PM (#61308916)
    "You keep using that word. I do not think it means what you think it means."
  • by kenh ( 9056 ) on Saturday April 24, 2021 @12:15PM (#61308968) Homepage Journal

    Los Angeles Mayor Eric Garcetti has proposed giving a "universal basic income" of $1000 a month to 2,000 poor local families for one year... The program would give 2,000 families below the federal poverty line monthly $1,000 checks for 12 months. The families could then spend the money however they please.

    Cherry-picking 2,000 families isn't "universal"

    California cities have been taking a lead with these programs... In San Francisco, grants and some revenue from hotel taxes will fund monthly payments of $1,000 to about 130 artists for six months beginning next month. Organizers said the pilot is the first to solely target artists. Oakland will tap private donations this summer to fund its guaranteed income program, providing $500 monthly to about 600 poor families.

    Oakland is "cherry-picking" families (with children) below the poverty line that are people of color.

    Still, a majority of Americans oppose the federal government providing a guaranteed basic income, according to a survey last year by the Pew Research Center...

    Well, yeah.

    Ultimately the costs of such programs will be too big for cities to finance alone, he said. But with data proving it works, Garcetti said states and the federal government could be inspired to fund them.

    So the goal is to take money from everyone, run through government, then hand it back to people? Brilliant. Oh, wait, the idea is to take money from the "rich" then after running it through the government hand it out to everyone rich or not?

    The issues around this idea seem to be:

    - are we replacing existing welfare/assistance programs with a single payment/month or supplementing existing programs? (advocates like to say they would "replace" existing programs and roll the money into some form of UBI, but many families receive much more assistance in current programs than any previously-mentioned UBI level I've heard - for example rent subsidy, welfare, snap/ebt, etc., and I've never seen one of these UBI "trial programs" ever actually replace existing welfare/assistance recipient's previously received.)

    - checks for everyone or just the "poor" (for whatever definition of poor you choose)?

    - Funding sources for the program (seriously, at some point the "rich" run out of money)

  • by Dog-Cow ( 21281 )

    It's not universal. Stop calling it UBI.

  • One of the less appreciated aspects of modern monetary policy is that cheap credit enables the wealthy to buy up housing like crazy. Got $1M? You're probably eligible for about $5M in mortgages if you want to start a small real estate empire. At 2.5-3.25%, if you lock in a ton of 30 year notes your numbers will be very good if you make even modest down payments.

    The cheap credit has also pushed for the normalization of houses that would be considered upper class homes in the 50s and 60s. Back then, 1500 squa

    • The reason homes keep growing is the municipalities lard on so many costs to developers it is uneconomically feasible to build small homes. Someone has to pay for all the electric, road water etc.
  • ...to poor local families...

    Ah, so Americans are basically renaming welfare. It's only UBI when you also pay it to all the middle class families & individuals & millionaires/billionaires in the population too. Once you discriminate between recipients, then you have to introduce some form of means testing, & that incurs some high costs with all the bureaucracy involved, AKA the welfare system.

    Alternatively, they could just start taxing the rich & corporate profits so that the money gets reinvested instead of being used

  • All you do is transfer the poverty to those who pay the bill for such a delusional "solution" to poverty.
    • by marcle ( 1575627 )

      You can't "transfer" poverty. If you take a small percentage of a rich person's wealth and give it to a poor person, the rich person is still rich, but the poor person is no longer poor.
      You can certainly argue about the effectiveness or morality of redistribution of wealth, but you're not "transferring poverty."

  • Not sure that this is going to work, but the fact is, that POVERTY, and the destruction of our mental health system by the GOP, have caused more of a downturn in America, than it has helped.

    Personally, I think that passing a modified version of Cotton's/Romney's min wage bill, Combined with some major changes to our higher educational funding, would do far far more for America and to help end poverty.

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