Apr 18, 2018
Let’s take a look at a recent Press Club speech from the Australian Greens leader, Dr Richard Di Natale,
“With the radical way that the nature of work is changing, along with increasing inequality, our current social security system is outdated…A modern, flexible and responsive safety net would increase their resilience and enable them to make a greater contribution to our community and economy.
That’s why we need a Universal Basic Income. We need a UBI that ensures everyone has access to an adequate level of income, as well as access to universal social services, health, education and housing.
A UBI is a bold move towards equality... It’s about an increased role for government in our rapidly changing world.”
You can find this Press Club speech on the Greens’ website https://greens.org.au/npc-2018
What is Universal Basic Income (UBI)
Here in Australia, it has been suggested the government might hand out somewhere around A$20,000 per year to every man and woman (with figures between A$10,000 and A$25,000 discussed).
The UBI scheme proposes that the government distribute a flat-rate payment to every adult citizen, without work testing or individual level of participation in the labour market, without job-search requirements or even submission to drug tests and would be implemented as either a partial or complete substitute for social security and welfare programs.
Where does it stem from?
Technological unemployment – a long history
Has employment gone anywhere?
How it might work?
18+ at $22,000 (Age Pension rate) = $428 billion
Is there a solution? Tax more (or borrow): Get rid of Tax free threshold?
In the real world
Going back to the quotes from the speech…
“With the radical way that the nature of work is changing, along with increasing inequality, our current social security system is outdated,”
Needing a radical way that will assist everyone with our current social security system. I do agree that it’s a bit outdated and might be looked at in the future…however…
“A modern, flexible and responsive safety net would increase people’s resilience and enable them to make a greater contribution to our community and economy.”
The part in the speech about being more resilient as a result of this income, its actually the complete opposite when you look at it. Its 100% reliance on the government. Some people may stop being self-reliant and making their own income - that makes you reliant! The government will (apparently) take care of everyone if only you give them the money to do it.
In my experience I tend to know how to care for myself in better ways than the government can.
“It’s about an increased role for government in our rapidly changing world.”
Sadly, this is the only true statement in this speech.
A better solution
Helping each other - why can’t people go back to helping their local community? Kids helping support their parents? It’s hard when a decent chunk of your income goes to funding someone else’s parents as well.
Go to financeandfury.com.au to ask a question
Unless you want me to cover how different political institutions lead to different conditions of living and equality? Or how legislation to protect consumers leads to an increase in monopolies, hurting them more?