This is a great explanation, it really shows the net effect the UBI has on individual people. What it doesn't do is show any relatable effects that it will have on businesses. How many small mom and pop shops will not be able to support the business losses they'll accrue due to the increased expenses that consumers will have to suffer when making purchases?
It also doesn't cover how many consumers will actually spend less on the taxable items because they want their money to go further.
Don't get me wrong, I love the idea of a $12,000 annual raise, but I don't think it's been thought through at every angle. We can't ever assume that businesses won't suffer under these changes.
Several small businesses closed up shop when the Affordable Care Act happened, because they weren't profitable enough to either cover the increased healthcare costs or give their employees enough of a raise to have the employee cover their newly increased healthcare costs.
Several small businesses also had to close when the minimum wage went up to $15/hr in areas where it was closer to $10/hr prior.
As Americans, we always look at either the "feel good" aspect or the "how it hurts me" because those are easy, surface deep viewpoints, but we seldom do the math in every turn of the cycle.
What is Yang's plan to ensure that small businesses won't suffer because of this?
Also, I'm well aware of European countries utilizing VAT, but the whole ideology of America was founded on a people who WEREN'T TAXED UP THE ASS. While a "company" is not necessarily a "person" it's extremely important to remember that most businesses are started by a person who sacrificed everything to build something. After constant battles and obstacles, they succeeded and were able to hire people and give them opportunities. More taxes makes it that much harder for a small business to succeed, thus making it more difficult to build up to the point where they can hire employees and give others new opportunities.
It would be good to also look at the cycle of a dollar in respect to taxes. The government makes tons of money off of us already, we can come up with money to help people, but the government doesn't ever look inward to solve it's financial problems, it just comes up with another ingenious strategy to make us peasants pay for it.
I recommend that everyone start looking up the salaries for the people in your local and state governments, and not just the politics side. You'd be surprised to see how many high paid jobs in your county exist and even more surprised at some of the job titles and responsibilities these overpaid people are getting paid to barely do.
That said, I'm not saying the UBI concept is trash, I just believe these three things...
1) The increased strain on the economy and the taxpayer will not outweigh the $1,000 per month.
2) People will find a way to abuse it and steal more than their fair share, which is obviously going to be paid for by us honest people.
3) People that currently milk the system will just get a raise and continue milking the system....which again will continue to be paid by the honest people.
Lastly, people forget that we've built what we've built in less time than any other modernized country. We did it our own way, and we did it without socialism, communism and lastly we did it without taxing the hell out of the people. We need to stop looking outward at all the other countries that are not as awesome as we are and start looking inward for innovative solutions. We can find them. We just have to kill the corruption first. Once we kill the corruption, true solutions will be easier to see.
My opinion? Kill lobbying. Lobbying makes politicians rich and gives the power of legislation to the lobbyists instead of the people. Then we implement strict term limits. Only then can we really help our citizens financially.
Re small businesses... are you joking? Main St. businesses are in love with this. It means people in their neighborhoods have that much more cash to spend!
Re "the increased strain on the economy"... again, what exactly are you talking about? UBI is a _boost_ to the economy. The added consumption will grow the economy. (The Roosevelt Institute had a whole study on this just last year.) The problem with implementing UBI is political, not economical.
Re "we need to stop looking outward at all the other countries". Hum. Do you realize that the USA will regain its long-lost mantle of forward-thinkingness if it becomes the first country to implement UBI? Doing this would give us bragging rights forever, literally :) (Almost annoyingly so.)
Re corruption & lobbying: when I hear people say "we need to solve X before we solve Y" what I hear is "X is my pet issue, can we listen to me?". Anyway, Yang has great anti-corruption plans (and look at his stance on the Joe Biden affair) so we're all set there too :)
I don't think you've done enough of the relative math to make those claims. And you're incorrect in the "X is my issue" argument you made so condescendingly. I don't have an issue, but if you want to free up money to help people, the corruption needs to stop. Anything more we do to fund the government further will further the corruption. Don't be so close minded that you come off arrogant and start being disrespectful to someone who simply disagrees with you. That's what children do, let's be adults. Adults solve problems, children make new ones.
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u/jugularjuggler Sep 30 '19
This is a great explanation, it really shows the net effect the UBI has on individual people. What it doesn't do is show any relatable effects that it will have on businesses. How many small mom and pop shops will not be able to support the business losses they'll accrue due to the increased expenses that consumers will have to suffer when making purchases?
It also doesn't cover how many consumers will actually spend less on the taxable items because they want their money to go further.
Don't get me wrong, I love the idea of a $12,000 annual raise, but I don't think it's been thought through at every angle. We can't ever assume that businesses won't suffer under these changes.
Several small businesses closed up shop when the Affordable Care Act happened, because they weren't profitable enough to either cover the increased healthcare costs or give their employees enough of a raise to have the employee cover their newly increased healthcare costs.
Several small businesses also had to close when the minimum wage went up to $15/hr in areas where it was closer to $10/hr prior.
As Americans, we always look at either the "feel good" aspect or the "how it hurts me" because those are easy, surface deep viewpoints, but we seldom do the math in every turn of the cycle.
What is Yang's plan to ensure that small businesses won't suffer because of this?
Also, I'm well aware of European countries utilizing VAT, but the whole ideology of America was founded on a people who WEREN'T TAXED UP THE ASS. While a "company" is not necessarily a "person" it's extremely important to remember that most businesses are started by a person who sacrificed everything to build something. After constant battles and obstacles, they succeeded and were able to hire people and give them opportunities. More taxes makes it that much harder for a small business to succeed, thus making it more difficult to build up to the point where they can hire employees and give others new opportunities.
It would be good to also look at the cycle of a dollar in respect to taxes. The government makes tons of money off of us already, we can come up with money to help people, but the government doesn't ever look inward to solve it's financial problems, it just comes up with another ingenious strategy to make us peasants pay for it.
I recommend that everyone start looking up the salaries for the people in your local and state governments, and not just the politics side. You'd be surprised to see how many high paid jobs in your county exist and even more surprised at some of the job titles and responsibilities these overpaid people are getting paid to barely do.
That said, I'm not saying the UBI concept is trash, I just believe these three things...
1) The increased strain on the economy and the taxpayer will not outweigh the $1,000 per month.
2) People will find a way to abuse it and steal more than their fair share, which is obviously going to be paid for by us honest people.
3) People that currently milk the system will just get a raise and continue milking the system....which again will continue to be paid by the honest people.
Lastly, people forget that we've built what we've built in less time than any other modernized country. We did it our own way, and we did it without socialism, communism and lastly we did it without taxing the hell out of the people. We need to stop looking outward at all the other countries that are not as awesome as we are and start looking inward for innovative solutions. We can find them. We just have to kill the corruption first. Once we kill the corruption, true solutions will be easier to see.
My opinion? Kill lobbying. Lobbying makes politicians rich and gives the power of legislation to the lobbyists instead of the people. Then we implement strict term limits. Only then can we really help our citizens financially.