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The Almighty Buck Government United States

A New Report Finds No Evidence That People Will Work Less Under a Universal Basic Income (theoutline.com) 564

Economists Djavad Salehi-Isfahani and Mohammad H. Mostafavi-Dehzooeifrom for the Economic Research Forum have released a new report on the results of a basic income scheme launched in Iran in 2011. "In 2011, in response to heavy cuts to oil and gas subsidies, Iran implemented a program that guaranteed citizens cash payments of 29 percent of the nation's median income, which amounts to about $1.50 every day (about $16,000 per year in the U.S.)," reports The Outline. Here are the key findings: The report found no evidence for the idea that people will work less under a universal income, and found that in some cases, like in the service industry, people worked more, expanding their businesses or pursuing more satisfying lines of work. The researchers did find that young people -- specifically people in their twenties -- worked less, but noted that Iran never had a high level of employment among young people, and that they were likely enrolling in school with the added income. The evidence presented in the paper is compelling, but the anecdotal belief that handing people money will make them lazy is hard to shake. "The findings in this paper do not settle this question," the report's authors point out. "What we have accomplished is at the very least to shift the burden of proof on this issue to those who claim cash transfer [sic] make poor people lazy, and to show the need for better data and more research."
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A New Report Finds No Evidence That People Will Work Less Under a Universal Basic Income

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  • What is work? (Score:2, Insightful)

    by Anonymous Coward

    It seems obvious that if people can do something they will, but what? Who knows. Hobby or Job, or accidental community service via picking up trash.

  • Who did they ask? (Score:4, Interesting)

    by Br00se ( 211727 ) on Thursday June 01, 2017 @09:51PM (#54531295)

    I would work less if I didn't have to work for my income. Am I the only one?

    • by Anonymous Coward

      Yes you worthless, unamerican, sack of shit.

    • Would you be completely unproductive with your extra free time though? If you worked on some open source hobby project instead it's not like the world is worse off. Yes I realize that's not the most efficient use of capital, and yes there are some who won't be productive with their time, but if it means some criminals will also be less productive with their time it means society probably sees some cost savings on the other end.

      The U.S. already spends huge sums of money on myriad social programs. Simplify
    • Obviously nobody would work (for someone else) if they could keep any arbitrary standard of living and not work.

      But if you had the choice between either getting every third paycheck doubled for the same amount of work, or else living on a third of your income for zero work, which would you pick? I sure as hell know I would keep working and just pocket the extra money to reach my life goals sooner, rather than live a life of bare subsistence just so that I could sit around doing nothing.

      (Not that I would be

      • I sure as hell know I would keep working and just pocket the extra money to reach my life goals sooner

        But would you retire sooner? If so, the result is still fewer people working.

    • by PopeRatzo ( 965947 ) on Thursday June 01, 2017 @11:05PM (#54531661) Journal

      I would work less if I didn't have to work for my income. Am I the only one?

      I also thought this until I retired. I do more now than I did when I was working. And more of that work actually does something for my community. No, I don't put in the "hours" like a wage slave, but the work is more productive and meaningful and fun for me.

    • What is your income, $16k/year? (Not that I think a UBI would reach even that high)
    • by interkin3tic ( 1469267 ) on Thursday June 01, 2017 @11:56PM (#54531953)
      No, but realize it also goes the other way too. I'm a biomedical researcher, I'll likely make more money quitting cutting edge research at a university and going into pharmecutical work. I'll be doing stuff that will have less risk of failing, but also has very little chance of being a big breakthrough. I'd love to continue doing what I am now, but I can't due to salary reasons. If money weren't an issue, I'd keep doing the high risk/high reward science as I am now.

      My job puts food on the table and a roof over my head, sure, but I'm working mainly to accomplish stuff I can take pride in. If the necessities were guaranteed, I think plenty of people would take riskier work in order to feel accomplished.
    • by Fire_Wraith ( 1460385 ) on Friday June 02, 2017 @12:07AM (#54532001)
      I might work less at my current job. That doesn't mean I would sit on my butt and watch Netflix all day.

      I've actually had periods where I wasn't employed for a reasonable stretch of time. Sure, I did a bunch of video gaming at first, but pretty soon I got bored and restless, and needed to find something productive to do. So yes, I'd find something useful to occupy my time. I might not be punching a clock at a corporate office, though - I might start doing independent hacking and vulnerability research for instance. I might set out coding new apps, or other such things. I might do something entirely different like learn more about automotive computer networks. But I sure wouldn't be idle.
    • by Rei ( 128717 ) on Friday June 02, 2017 @05:32AM (#54532999) Homepage

      UBI doesn't make vast amounts of money for comfortable living appear out of thin air. 29% of the average US household take-home income is under $14k. The poverty line in the US is around $22k.

      UBI offers a replacement for welfare, social security, minimum wages, unemployment insurance, and countless other things. Total combined welfare in the US ranged from [washingtonpost.com] $16984 (Mississippi) to $49175 (Hawaii) in 2013 (everything from direct payments to assistance for food, housing, energy, etc, both federal and state), according to the conservative Cato Institute. Social Security in the US averages $16k. Minimum wage is $15.1k. Etc. So keep those numbers in perspective. To put $14k a different way, that's $1167 per month - and given that a household is not supposed to spend more than 30% of their income on rent (greater than 30% is defined as "rent burdened"), that would suggest a rent of no more than $350 per month. And we're talking household income here, not individual. And that's income that would be without other added assistance (food, housing, etc), unless your goal is to double up the welfare system rather than replace it.

      The big difference with today's welfare patchworks is that UBI is far more efficient (no huge bureaucratic mess, no "hoops" for people to jump through to prove qualifications, etc), doesn't have "cracks" for people to fall through. doesn't have any "cliffs" that disincentivize people to work further, etc. You don't "lose benefits" by working more - any extra work you do is extra income. To move you from poverty wages (UBI) to having the resources to not have to live in a dump, to be able to afford a vehicle, electronics, whatever it is that you enjoy in life. And if you really are the rare sort of person who actually likes living on poverty wages rather than working... well, that probably already describes your situation today.

  • by future assassin ( 639396 ) on Thursday June 01, 2017 @09:53PM (#54531309)

    per year extra hell yah I'd still work (Mind you I own my own business) but still $1200 extra per month is a lot of money to do things lots of people wouldn't be able to do other wise. Hell with $1200 extra I could use that to run a second online business.

    • by Jzanu ( 668651 ) on Thursday June 01, 2017 @10:19PM (#54531451)
      Precisely, the provision of minimal support in general simply alleviates some of the burdens of class divide. Enabling more people to exercise creativity and advance the economy has greater gains than the dog-eat-dog model allows.
    • by ranton ( 36917 )

      per year extra hell yah I'd still work (Mind you I own my own business) but still $1200 extra per month is a lot of money to do things lots of people wouldn't be able to do other wise. Hell with $1200 extra I could use that to run a second online business.

      Well it should be pointed out that if you are a successful businessman you would either see no increase in income or more likely a decrease in income from the implementation of basic income. My arbitrary guess is a family with around $100k in income would see no change in income (they would get a basic income check of $1200 per month and pay $1200 more in taxes per month), while everyone under that gets more money and everyone over that gets less money. Basic income only makes sense when paid for by a progr

    • by Wattos ( 2268108 )

      In Switzerland, we had a vote for Universal Income. Here the following system was used. if you have income, you will not get an additional $1200. You will get nothing. The way it works is that $1200 is taken away from your income and then the same amount is placed back.

      This is to make sure that you always have at least $1200 no matter what you do. So if you actually earn already more than $1200, there is no change for you. That means, that you would most likely not get any extra under universal income. Heck

  • Strawman Much? (Score:5, Insightful)

    by hwihyw ( 4763935 ) on Thursday June 01, 2017 @10:01PM (#54531351)

    The argument against basic income is not about laziness, it's where the money comes from. Gather 5 of your friends and implement basic income. Those who earn less than the BI gets paid by money collected from those who earn more than the BI. Post back the results. Do it among 10, 20, or 30 of friends, all without the need for any government or politicians. Good luck.

    • The money comes disproportionately from the people that hold a grossly disproportionate amount of the wealth.
    • by pellik ( 193063 )
      Ok, but now exempt those 5 friends from paying social security, from paying any taxes that contribute to welfare, or any taxes that pay for or run any other wealth redistribution scheme already in effect. Then give them payments equal to the massive tax incentives given by local and state governments to corporations looking to bring jobs to their area. Those 5 friends might just do alright.
    • Re:Strawman Much? (Score:4, Insightful)

      by werepants ( 1912634 ) on Friday June 02, 2017 @11:22AM (#54535531)

      This happens regularly, actually. At the most basic level, in families, when one member has a physical or mental illness that prevents work, or when somebody loses a job, what do you think happens? Somebody with extra space offers a couch or a basement for a while, etc. Parents support adult children, spouses live off of a single income for a while, etc.

      The same thing happens in church communities and presumably other, similar groups - people pool resources to help those in need.

      It's a fundamentally decent thing to do. Basic income isn't meant to be a freebie to allow free loaders to lay around, but to help people in a rough patch. In a similar way, families support members in need. In both cases, sometimes the system can be taken advantage of, but that's just an inherent part of human nature, and you do what you can to incentivize self-sufficiency.

  • by SensitiveMale ( 155605 ) on Thursday June 01, 2017 @10:03PM (#54531365)

    then I'm sure it'll work everywhere else in the world.

    After all, Iran is just like every other country in the world.

  • Now we are supposed to base public policy based on data Iran collected?..

    But, hey, why not try this in Venezuela now? Surely, Maduro will listen to the foreign fans of Bolivarian revolution [pjmedia.com]...

  • by urbanriot ( 924981 ) on Thursday June 01, 2017 @10:50PM (#54531583)
    Slashdot headline reads "A New Report Finds No Evidence That People Will Work Less Under a Universal Basic Income" yet quoted in the article "The researchers did find that young people - specifically people in their twenties - worked less"

    Sooo... yea. I realize Slashdot has become a new social justice platform but c'mon, this is at least the third universal basic income propaganda post of the week and it's certainly stretching the boundaries of legitimate.
    • Any excuse to say the words "social justice", eh? Even when the topic has nothing to do with it.
    • by mentil ( 1748130 )

      Pretty sure it was meant that people didn't work less on the average, even if specific groups did work less. It was thought that people in their 20s were going to school instead of working right away, which is probably beneficial to the country in the long run. It's like how dropping out of school after 6th grade to work on the family farm is no longer considered a good decision long-term.

    • Yes. College age kids are more likely to spend their time doing things like going to college rather than working an entry level no skill job, if given the choice. It's a shocking proposition, I know.
      • by slew ( 2918 ) on Friday June 02, 2017 @02:38AM (#54532489)

        Yes. College age kids are more likely to spend their time doing things like going to college rather than working an entry level no skill job, if given the choice. It's a shocking proposition, I know.

        Although many folks like to push "more college" as the solution, we actually have too many people going to college as it is.

        Of course college is very important to those that can benefit from the experience, it doesn't change the fact that many people find that after graduating college they aren't actually ahead of the game and missed out of 4-6 years of work experience on their resume and are only employed in positions that don't actually require college degrees.

        In the post-scarcity automated job-scarce world, this is just an inefficient use of resources and a giant waste of human capital. You are probably better off with a make-work program for college aged folks that likely won't have jobs that require college degrees at the end of the line than to let them live off of UBI and not develop any work skills that allow them to potentially contribute to society more in the future rather than get stuck in a welfare trap (albeit more gilded than the current one).

    • and don't mature and work more as they age. Also, when did social justice become a bad thing?
  • by SpaceDave ( 4139061 ) on Thursday June 01, 2017 @11:32PM (#54531821)

    I acquired a passive income 15 years ago that was roughly equivalent to a UBI. I left my job and let someone else have that income while I developed a new business that I never could have built otherwise. Awesome result with one big caveat: After 10 years my passive income started looking less secure and I suddenly realised I'd been kidding myself about how hard I'd been working. I doubled my productivity instantly.

    I had become less productive with a guaranteed income, but even so the effort has given our community a new business that brings in tourist dollars.

    May be the perfect formula doesn't actually require 40 hours per week. Maybe we can afford for most people to be a bit less productive (call it more lazy if you like).

    I say we should give UBI a try - at least throw a moderate budget into some more thorough research.

  • by mentil ( 1748130 ) on Thursday June 01, 2017 @11:44PM (#54531891)

    What's it matter if people work less due to UBI? If a UBI is implemented due to automation permanently displacing jobs at a faster rate than new jobs can be created, then it would be expected that people would be working less. Even if that's not the case, it's not necessarily due to laziness. Many old people who would/should be retired, find work because their retirement savings/pension/social security payments are inadequate for their lifestyle (or any lifestyle, potentially.) Others are effectively disabled, alcoholic, or otherwise 'can' work but only at great disadvantage, generally through no fault of their own; many of these people are considered unemployable. Others aren't disabled but have some medical issue (arthritis etc.) that causes great pain doing any work; some people hurt standing for long periods of time, or can't sit still for long periods of time. Are these people 'lazy'? If so, does that mean they deserve to starve to death in the gutter?

    As easy, unambitious jobs go away, layabouts won't suddenly rise to the occasion and gain some professional skills; they'll complain that there's no jobs, and continue being leeches (usually, on their family and friends.) In reality I don't think many of these people exist, they tend to either a) do odd jobs, or bounce from job to job constantly, or b) are low-grade criminals, petty thieves et cetera. In both cases, it probably costs society less to just hand them some money to leave the rest of society alone.

  • by mveloso ( 325617 ) on Friday June 02, 2017 @12:11AM (#54532013)

    There was no evidence that people who got paid some cash allowance didn't work, except for the age group where the amount was material (the young).

    That's quite a different conclusion than the headline would suggest.

  • by Solandri ( 704621 ) on Friday June 02, 2017 @12:29AM (#54532067)

    found that in some cases, like in the service industry, people worked more, expanding their businesses or pursuing more satisfying lines of work

    That right there is the fly in the ointment. Simply working isn't enough. You have to do work producing something other people want, not necessarily what you want. Work has value because it produces something other members of society are demanding. If a UBI allows you to quit a productive job in order to start an unproductive one (e.g. artist), the net result is that the country's productivity decreases, and the standard of living drops. (Which means the UBI has to be increased to keep it at the level of "basic", starting a vicious cycle of continuing productivity declines and UBI increases.)

    As an extreme example, nobody wants to collect garbage, repair toilets, clean septic tanks, etc. But because it's needed, society pays a lot for it - enough to entice some individuals to live with the stink and do it for a living. If a UBI causes some of these people to quit and take up more "satisfying" lines of work, the prices of these services will go up, resulting in less income available for people to spend on other things, resulting in the UBI not buying as much as it used to, resulting in the government increasing the UBI to compensate for its decreased purchasing power, resulting in more people switching to more "satisfying" work, resulting in more prices going up, etc.

    The economy wants to price things according to how much society values it. Attempting to thwart that with a UBI or minimum wage doesn't make that tendency disappear. The economy just interprets that as damage to the system, and routes around it - by devaluing the currency to lessen the impact of the fixed value of the UBI or minimum wage on prices.

    • by skam240 ( 789197 )

      You don't understand what UBI is. It's not a utopian wage until we have utopian levels of productivity (ie. robots that do all of the jobs you list). In the in-between time (the debatable period in which automation is putting people out of work faster than new jobs are created) it's a dollar amount that keeps food in your belly and a roof over your head. Want a TV, a sensible car, or any number of other luxury? You'll be quite happy to work any of those jobs you list and at fairly low wages as your basics a

  • by mysidia ( 191772 ) on Friday June 02, 2017 @12:43AM (#54532111)

    "What we have accomplished is at the very least to shift the burden of proof on this issue to those who claim cash transfer [sic] make poor people lazy,

    No you/they haven't. Burden of proof to support a costly program or scheme does not work that way: You have the burden, and your concept doesn't have merit until you've proven it ---- showing a little bit of evidence doesn't change the burden of proof to someone else's. The burden of proof remains to show that Universal Basic Income provides more value than it costs in order to justify this radical scheme.

    As for the evidence that providing Food or resources without having to work for it promotes Laziness or failing results ---- the strong exemplars of this happening are readily available throughout history. Communism/Socialism to any degree reduces production and doesn't create sustainable economies; history's littered with numerous examples...

  • by c6gunner ( 950153 ) on Friday June 02, 2017 @05:20AM (#54532961) Homepage

    and that they were likely enrolling in school with the added income

    That single line torpedoes their entire "study". To rephrase the article summary in more honest words: "we found that people did work less, but we're just going to assume that they're going to school instead".

    You can prove anything you want when you're willing to hand-wave away any data you don't like.

    • To rephrase the article summary in more honest words: "we found that people did work less, but we're just going to assume that they're going to school instead".

      You failed to rephrase honestly. An honest rephrasing is "We found that people in the age category where people typically attend post-secondary schools did work less, so we assume they went to school instead". The reduction in paid work was only seen in that one category.

      That single line torpedoes their entire "study".

      No, it just means that another study should be done to find out what people in that age category actually did.

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