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The Almighty Buck Government

Andrew Yang's Nonprofit Helps Fund Five-Year, $500-a-Month Basic Income Experiment (businessinsider.com) 67

Working with the city of Hudson, New York and a local career center, Andrew Yang's nonprofit, Humanity Forward will be giving 20 people a basic income of $500 a month for five years, in a collaboration called HudsonUP. Business Insider reports: A spokesperson for HudsonUP said the 20 residents will be selected later in 2020, likely in the fall, and will begin receiving payments shortly thereafter. Humanity Forward will cover half the bill, which according to Chris Sommerfeldt of the Daily News will be $600,000. Spark of Hudson will cover the other half, and will, together with community organizers, select the 20 participants, the Daily News reports.

While the project is starting in Hudson, Yang said he hopes more Americans get access to UBI policies soon... "I think that millions of Americans got the $1,200 stimulus and liked it," he said, "and felt that this is something that we should continue to do in a time when there are record levels of unemployment, and tens of millions of jobs lost, many of which will not return..."

Susan Danziger and Albert Wenger, founders of The Spark of Hudson, are longtime UBI advocates. They're hopeful the five-year program will have long-term impact. "UBI gives freedom — freedom to be entrepreneurs, to run for office, to stay home with the kids, to take care of sick parents, to leave abusive relationships, and to help our community in times of crisis," Danziger said in a press release.

The article also notes that Spain "is moving to establish a permanent basic income in the wake of the coronavirus pandemic for low-income citizens."
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Andrew Yang's Nonprofit Helps Fund Five-Year, $500-a-Month Basic Income Experiment

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  • Rent (Score:5, Insightful)

    by cygnusvis ( 6168614 ) on Sunday May 17, 2020 @01:37PM (#60070730)
    I hope that a basic income is established so that I can increase rents and make bank.
  • Guaranteed to give useless results, as it is both too little to give freedom and too much to force action. Likely to result in a worst case result for either "side".

    Way to boldly half where no one assed before.

  • I invest heavily in thing either resistant to inflation or that are worth more, relatively, with inflation.

    Bring on the huge cradle to grave full UBI! Woot! I'll make bank, big time!

    But I will feel badly for the rest of you carting around millions of dollars to buy a loaf of bread (on my island).
    • UBI only equals inflation if the source of the money is the printing presses.

      If the source of the money is taxes, then its what others have complained about here, that its not enough money to live on.

      And thats the real fatal flaw in UBI. Its supporters want it to be more than it can be. It wont be enough to live on, and since its going to replace welfare, then now the people previously on welfare wont get enough to live on when it used to be that they did. The UBI supporters will then demand that those
      • I was assuming it all leads to printing more but you're right, some people push UBI with the fantasy concept that it's just meant as an efficient replacement for current programs. I think it's a total boil the frog red herring and just a big rope a dope because as you very correctly noted they'll just come back for more.
      • by kenh ( 9056 )

        If the source of the money is taxes, then its what others have complained about here, that its not enough money to live on.

        $500/month for 320 Million Americans is $1.92 Trillion/year. We currently collect $1.8 Trillion in federal income tax receipts. You can't simply Tax The Rich and have a program that survives a second year - The Rich aren't THAT rich.

  • Totally supported him in the primary, great direction for Democrats. Think about Facebook, it is the product of the programmers somewhat, but largely of the users who provide all the content. Their only pay is free access to the product, and yet billions contribute for free, making all the value of Facebook from our leisure activity. The moral of that story is people will create value by doing what they love and it can be harnessed if things are set up right. That is what a smart UBI program is about: a bla

    • by kenh ( 9056 )

      You understand Facebook's value is in advertising - it doesn't pull money out of the air, it offers something of value that advertisers are willing to pay for access to. Your basic idea is that we all should, everyone of us, become Social Media Influencers.

      • And where does the thing of value they sell to advertisers come from? Us, our attention and content to draw attention of peers, all through leisure activity. I am using this as an example of a more general phenomenon, people doing what they like can create value. More broadly, activities can create value in smarter ways: In the end it is about all of us training the machines that replace our day jobs, not being social media influencers. When such tech available, its about the best Subway sandwich artist be

  • By making UBI small amounts or short duration you are never going to get realistic results.
    It is not that hard to create a decent UBI
    study. Set up a lottery for $2000/month for life and sell tickets. The simplest way to do this would be to contract with a state lottery that already has everything set up.
    Sell a few million tickets and award your winners. Why is no one doing it the correct way and instead doing these lame half experiments.

    • I think small scale studies are worthwhile and necessary, but I'm worried that UBI just won't scale up.

      The one possible complication that I see when applied en masse is price inflation. If people have more money to spend then it stands to reason they will spend more, which will increase demand for goods and services. This might in turn put upwards pressure on prices and offset the entire supposed benefit of having UBI in the first place.

      I don't know how you can attempt to falsify his hypothesis in small sca

      • UBI should scale fine. We could do it right now.

        Give everyone $2k/month. Everyone who's over the poverty line, subtract $2k/month from their paycheck as a payroll tax. People making over $5k/month, subtract more than $2k. So for the vast majority of people, the impact is zero. If you make a lot of money you take a bit of a ding.

        To help make this work we wipe out most of the rest of the social benefit taxes in paychecks and company tax bills. Gone are social security, disability and unemployment taxes, and t

    • Set up a lottery for $2000/month for life and sell tickets. The simplest way to do this would be to contract with a state lottery that already has everything set up. Sell a few million tickets and award your winners. Why is no one doing it the correct way and instead doing these lame half experiments.

      State lotteries already have this. There are scratch-offs offering the possibility of $500/week for life, which is close enough to $2000/month.

      google search: 500 a week for life [google.com]

      • That seems ideal to study the effects of UBI and how it alters behavior. It is also decently randomized. Lotteries might skew slightly to the poor but the demographics of the people who play lottery are probably exactly who the UBI is predicted to help.

    • Why would you make people buy tickets? Doesn't that just tilt the results to people who can already afford to buy more tickets?
    • by kenh ( 9056 )

      Set up a lottery for $2000/month for life and sell tickets. The simplest way to do this would be to contract with a state lottery that already has everything set up.

      Any idea how many tickets you'd need to sell to fully-fund a single winner?

      $2,000/month x 12 months/year x 50 years (estimated lifetime of "award") is about $1,200,000 - if you sold $1 tickets, and the lottery ran this for free (no overhead), you'd have to sell 1.2 million tickets per winner. If all 320 Million Americans each bought one ticket per week, at the end of the year you'd have 267.5 winners/week, or about 13,000 winners/year, and 319,987,000 Americans who just spent $52/each to benefit 13K random

      • Any idea how many tickets you'd need to sell to fully-fund a single winner?

        $2,000/month x 12 months/year x 50 years (estimated lifetime of "award") is about $1,200,000 - if you sold $1 tickets, and the lottery ran this for free (no overhead), you'd have to sell 1.2 million tickets per winner. If all 320 Million Americans each bought one ticket per week, at the end of the year you'd have 267.5 winners/week, or about 13,000 winners/year, and 319,987,000 Americans who just spent $52/each to benefit 13K random Americans.

        I'm gonna guess you didn't think about running the numbers.

        I'm going to guess that you have no idea how big state lotteries already are. Enough people buy lottery tickets to easy fund this.
        I also found out from another poster that this type of lottery already exists in several states: https://www.google.com/search?... [google.com]
        So really all you would need to do is possibly modify the terms to allow the winners to be more easily tracked and not allow them to opt for the lump sum.

  • This video is now outdated, things have become even worse https://www.youtube.com/watch?... [youtube.com] Need things like UBI to address it.
    • Nope, because UBI will come out my pocket. and it can't be $500, would have to be more than $2,000 a month. Six trillion a year on the backs of people like me that work? Nope, you have to get a job.

  • Like all socialist ideas, UBI sounds like it ought to work. And it would, if it weren't for...people.

    Some people are lazy. Some are dumb. Some are, literally, crazy. No surprise: many of these people are on benefits. Are you going to let them starve?

    No? Then you don't want UBI, because lazy, dumb or crazy people will blow their UBI on booze and bling, and then be destitute. So you will wind up with UBI *and* all of the old programs.

    • > No? Then you don't want UBI, because lazy, dumb or crazy people will blow their UBI on booze and bling, and then be destitute. So you will wind up with UBI *and* all of the old programs. Can you support that statement with science? Of course there will always be outliers, but from what I've seen what you suggest is not likely to happen in the bulk of cases [1]. When people are poor and have no secure/stable income, they tend to make bad decisions [2], mostly focused on the immediate short-term (and g
  • by Solandri ( 704621 ) on Sunday May 17, 2020 @03:33PM (#60071134)
    To be a legitimate UBI experiment, the $500/mo you're giving those 20 people, has to come from those 20 people. Just not necessarily equally distributed (some could contribute more, some could contribute zero).

    If the money is coming from outside those in your experiment, then it's not a test of universal anything. Because it's impossible to scale it up to encompass the entire population.
    • by kenh ( 9056 )

      No wait, I think Mr. Math (Andrew Yang) is on to something.

      Let's just ignore the fact that $500/month isn't an income level most people can live on - at $6,000/yr it's a fraction of the US Federal Poverty Level of $12,760/year. [hhs.gov]

      There's what, 320 Million Americans? What if we just printed out $500 checks to every American, every month - that's only $500/month x 12 months/year x 320 Million recipients, or about $1.92 Trillion dollars/year - that's not so much, really, except it's about $120 Billion more that t [cbo.gov]

      • I'm not exactly a Yang supporter, but why ask me when you can ask him directly [yang2020.com]. Also your numbers are a bit misleading. Even the page you link to shows that just social security + medicare together are 1.7 trillion, so I guess we are already out of money for the military and roads etc?
  • by kenh ( 9056 ) on Sunday May 17, 2020 @05:56PM (#60071608) Homepage Journal

    "I think that millions of Americans got the $1,200 stimulus and liked it,"

    Was anyone, who attained schooling beyond third grade, surprised by this outcome? Wow. People like free money - who knew?

  • They should name it "self presentation bias: the study"
  • Your post is very meticulous and impressive for me, I hope to get more good posts. powerline io [powerlineio.co]
  • I don't really understand all these studies about UBI. They constantly ask the wrong questions. The one... and only... question to ask is: How will we afford a program like this? These very, very limited 'studies' will never answer that question.

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