What is universal basic income? | CNBC Explains
Vložit
- čas přidán 27. 12. 2017
- What if every person got free money every month? CNBC’s Elizabeth Schulze explains the concept behind universal basic income.
-----
Subscribe to us on CZcams: cnb.cx/2wuoARM
Subscribe to CNBC Life on CZcams: cnb.cx/2wAkfMv
Like our Facebook page:
/ cnbcinternational
Follow us on Instagram:
/ cnbcinternational
Follow us on Twitter:
/ cnbci
Universal basic income will be very much beneficial for humankind...especially for those under extreme poverty
IT IS NOT FREE!
Someone is paying into the system first because the money doesn't just appear in the government accounts.
It does.
Money is just an abstraction.
No. It doesn't.
Money IS an abstraction because we could use coconuts just as easily as we do bits of paper. It is a fungible commodity that we all agree upon.
Even as an abstraction it still comes from something tangible. I work a certain number of hours in exchange for a certain number of coconuts. That work is tangible and is *not* fungible at the individual level because I am expecting a certain number of dollars and not a certain number of coconuts. You can't just start handing out coconuts because -you- think money is an abstraction.
the government prints money.Then they sell it to us at interest - they are called banks. And it is a very big scam in that sense. Where else would money come from...it's printed somewhere - THEN it goes to people...it start at the government.
"...the government prints money."
Yes. Because if we only have one company doing the printing we can control the quantity, quality, and inventory. If just anyone could print money there would be no way to keep track of how much of it there was which would reduce the value of all of it.
"...Then they sell it to us at interest"
No. Where did you get this idea because it is wrong.
"... - they are called banks. And it is a very big scam in that sense."
And you, of course, don't have any of your money in a bank. Nor do you have any credit cards because they are also banks. And you don't have a mortgage on your car or house because that would be dealing with a bank.
"... Where else would money come from...it's printed somewhere - THEN it goes to people...it start at the government."
Again, yes. But you have it back-asswards. It starts with the people who do the work that generates the wealth that we put in the banks that get the money that wealth represents from the Government. It starts with the people and ends with the Government.
Do some more research, look up what happens when a government starts printing more money. Look up the story of the Zimbabwe dollar if you want an easy example of what happens when you say things like 'the government can just print more money.'
If I remember correctly, according to a model suggested by the Greens Party of Finland, persons receiving basic income would also have a 40% tax rate. The model was a two tier system where people earning less than 2500-3000 €/month would pay the 40%, and people earning more would have an even higher rate. Also, (again according to the model and my memory) some example calculations showed that the amount of net income would remain pretty much unchanged (±0). So, of course it's not free money, but just fiddling around with the taxes. In Finland the general mood is that we have too much bureaucracy everywhere, so there is definitely an incentive to experiment with this sort of thing.
It would be stupid to call this explanation sufficient. It could be done a lot better to implement a UBI. First it´s not on top of all prices because this would drive income and tax to a new higher equlibrium. It could in that sense also be thought as substitutive in it´s introduction, but once in place you can never lose it. Second it should be high enough to be free from the employment trap and from the unemployment trap. Third it should be truly universal, that everybody gets it no matter what. This would enable people to do the work they consider to be done and quit bullshitty jobs. Think of UBI as an income you can always count on #countonbasicincome
Who is the government going to take it from so they can give it to everyone . Someone is going to get the poopy end of the stick.
3:20 "Getting paid not to work" ... that's not how universal basic income works. People get free money REGARDLESS if they work or don't work. People get paid more if they work. Working does not take away the free money. It is like the zero point energy. There is no such thing as zero energy.
Finally someone who isn't being a pretentious Dumb** about it and actually cares about being empathetic. Thank you!
Won't universal basic income only drive up prices. So the $100 of yesterday becomes the $1000 of today?
Donovan Tull interesting. Thanks for that explanation.
Prices wont go up because prices are cheaper due to the up rising of automation.
Prices will go up, but so will the taxes by the government in order to pay more UBI to the people. Inflation will be accelerated.
Landlords and universities will _definitely, absolutely_ raise rents and tuition respectively were UBI to kick in. Oh, wait a minute . . . they're doing that already, but it would be accelerated.
Check out Andrew Yang
3:30 mins talking about UBI and 1 minute to fail to explain how the government could afford to give money to population
"ThE MoNeY DoEsNt CoMe FrOm NoWheRe" yeah no shit Sherlock, the reason its gaining traction is that you can tax the automation that replaces human jobs at a much higher rate since robots don't need money for housing, food, etc...
Wow, CNBC showing a reasonably good clip about Basic Income! Amazing!
WE NEED UNIVERSAL BASIC INCOME!!!
It may work instead of government subsidies for housing, child care, higher education and food which only drive prices up and create bureaucratic costs
Important clarification: Some Libertarians, like Milton Friedman, only favor the Basic Income as a more efficient and simple substitute for the welfare state. Generally, Libertarians are against basic income. They are simply saying, if there is to be a welfare state, basic income would be a better way to do it.
Yes, a notable exception seems to be Charles Murray who is all about UBI going full steam ahead.
Thank you 🙏
Good channel. i’m feeling smarter right now
Take the money out of Tax Havens to pay for it.
Here's an idea: identify people who owns more than $ 3000 in their asset. Then, give them 1 year. If their asset never reduced by that number, they gonna give 2.5% of their total asset to the poor. If sometimes their asset became less than $ 3000, then the 1-year-count-down will stop. Whenever they asset exceed $ 3000 benchmark, the 1-year-count-down is started..
Who's the poor? They are people whose not able to afford their basic needs by their current income.
How much money to give them?
The amount that is sufficient to make them survive the entire year (with the basic need).
Here’s the issue, basic income would only work if it actually covers basic necessary costs and the money is a put towards where it’s supposed to go.
Basic income should cover what rent would be for a one bedroom apartment, groceries, Internet, cell phone and, hygiene. - that’s basic income and it would vary based on where you live.
I wouldn’t be opposed to the money going straight to the bills and not put in the hands of people who may abuse it.
The person receiving the “basic income” should still be eligible for the benefit a year after they are employed IF they obtain a job that is less than the average yearly income in their area with a max of two years for the benefit... something like this would level the field and give opportunity to people who never had it.
Being able to obtain employment without penalty aka save earned income for a year while receiving true basic income would give recipients the opportunity to become home owners and permanently break generational poverty... this would save the government way more money in the long run and boost our economy.
vote communism
I agree with some of your points here and I think UBI is a great idea.
Such a great thing to know about government and basic income. Are you able to go to Serbia and make a video about Serbian income? monthly salary is around 300 euros believe or not. Guess how they are able to survive with that???
Love Elizabeth ❤️
Then intro is quite off. That’s not how UBI works at all. It’s not whoever wants it. It’s for everyone.
UBI makes sense but it must come with a rule that the recipient must spend the received money fairly quickly. Since one is getting the money regularly, say monthly, they don't have to "save for rainy days" as next month they are getting the money again. If one is receiving the money and keeping them in the bank or at home, this doesn't help generate more money and more tax for the government and the government will very quickly run out of cash to distribute, so spending it is a key.
What if they spend UBI on stocks or mortgages?
UBI would be able to be invested or spent on a mortgage. I dont think it's a disincentive at all. In fact I think business' would be booming and all the current markets would improve.
Nice video...
Nice video 👌👍
It isn't free though, it is basically just a tax return.
We need to improve our language. Jobs accomplish three things - provide industry with labour, provide employment and distribute wealth. Employment should not be synonymous to work. Work and recreation are attitudes towards employment. AI is eliminating the industrial need for labor. UBI can address the distribution of wealth. Besides these two, there is still the need to employ every able body and mind in a socially acceptable occupation. Such occupation should be encouraged by supplemental income.
I'm Kenyan.. Trust me,We have no universal basic income program going on that I know of.. Not even as an experiment
Where did you find that?
AI : "Allow me to introduce myself "
UBI Is our future! :)
2:16 an estimated millions of people
When you go to the store, you pay taxes. Currently, depending on the type of consumption, 35% to 60% of the money returns to the budget in this way. So when someone gets 600 Euro UBI it costs 50% less in real terms. By the way, the person who spends the money creates the demand.
I have a question... If everyone gets a basic income, wouldn't that make the price of everything to rise? Then we're back to square 1 where if you don't have an extra income, you can't access to anything.
No because AI and quantum computers will make food, housing, transportation cheaper by 10 fold. In 1776, 69% of the population work to feed the population. In 2018, 49% of the population work to feed the population. The pace of AI and quantum computers will drive to the point that 20% of the population work to feed the population in 10 - 20 years. Work by the majority not be needed. To sustain this new economy where majority do not work and get free money while not causing inflation, we look at this equation: MV = PQ. AI will increase Q while not changing P. As such, if Q increases by 5 fold, V can increase by 5. 5 fold increases in GDP means, each person 18 to 64 can get $3,000 a month in 2018 dollars and we wouldn't even see any inflation.
Id rather give Universal basic income than give poverty. Tax automation and all transactions with a small vat etc. So it pays towards this. Bingo!
"If you divided all the world's money out equally sooner or later we'd back to exactly where we are now."
A famous person
Increasing spending is always a good thing for the economy. That's what businesses need to grow and sustain.
Lol. No strings attached? Everything has its cost. As long as you are an obedient lap dog, you get the money.
Very informative. Much Blessings to you. Thanks for sharing, Lord-Jesus-Christ dot
Just get the respective national banks like the bank of England or the fed to print more money, like they did to bail out the failed banks with Quantitative Easing.
In developing and underdeveloped economies it should be planned in some areas like consession on electricity consession on medicine, gas bill, water bill or even free mobile recharge or else it will end up in consumption of alcohol or tabacco product
She didn’t mention Andrew Yang. He made it a mainstream.
The negative income tax is actually different and a better idea. In the idea your right to get money would be tied to your ability to bay income tax. So if you made money and paid income tax, you would not get money from the government, or in some versions the money you got was proportional to the income tax you paid, so more tax you pay, the less money the government would give you. So people who paid no income tax would get the most money, since they have no income, and people who paid the most income tax, would get no money at all from the government, since they have the most income.
Unemployment gives that much in a week. So, is it in addition to the unemployment benefits and any other benefits for low income people. Giving only $650 per month to people would not discourage people it would encourage people because they would be homeless
Americans talking about basic social security like it’s a revolutionary outlandish idea is so sad to watch
In England you can claim over 2000 pounds a month on our welfare system. To be given 1000 would mean poverty and starvation for many. The cost of living is becoming ridiculous.
Free money? Silly rabbit, in America we get a credit card ( EBT card) , it has unlimited funds paid for by the working tax payers.
This is concept now introduced in india....at sikkim STATE
Maybe the UBI should come from taxes refund, by scale in demographic data according to each state rated every year. The government already knows who is working and if it's illegal or not.
As we move into the future, technological unemployment is going to make this a reality.
What is ore important than basic income for all is getting the homeless housed. That would actually save money used for hospitals and police services and plus all the other services necessary.
It would save the lives of the homeless as well and give them a safe place to sleep without getting woke up and told to get lost. They would have a place to rest. A warm place to sleep out of the wind, rain and snow. Security and a place to lock their door and keep their belongings.
It doesn't have to be big or fancy. Just an 8x8 room with a bed, dresser, small fridge, table and chair and a crock pot. Shared showers and kitchens
Made out of concrete block to help prevent fires. Painted nice and with windows, power outlets and gardens.
This would help to keep cities cleaner and safer.
Its safer for the homeless and everybody else.
It would save massively on hospital costs and police costs. Its humane.
Don't give money that might not go where it should go. Instead give 8x8 rooms to live. To have their own safe space. Money might go to the wrong places. Having an unconditional place to live and sleep is more needed than money.
This would ease stress, reduce fights and trauma. Produce security which may help with mental health.
This is much more needed than universal income for all.
This is instead guaranteed housing for all the homeless and those in deep poverty and about to beco e homeless.
It's the compassionate thing to do.
Rice, beans, peanut butter, cheese, eggs, split peas and lentil can be given so they can cook themselves hot meals instead of digging in garbages for food;
Fir those who want and need it.
Food banks and community services can supplement their food as well.
Extra food given for volunteering at the apartments.
No junk allowed outside the rooms.
Daily walks made to take away and dispose of junk left outside the rooms.
Bruh, you just described homeless shelters
If you give everyone $1000 and increase Government debt. Then I could foresee high inflation and the cost of goods going up drastically. I could see businesses raising their prices because they know people have more money. If your dependent on that $1000 dollars. What good is it if it becomes worthless.
that $650.00 a month is so low you cant do much with it at all maybe pay for food that's about it, not much more
#Yang2020 #YangGang
I say start with 50 dollars. And increase 5 dollars every month. 1200 by 20 years. We can adjust the amount as as automation increases.
How about start with 500 and increase it to over 2000 in the next few years. How cheap can wealthy people possibly be?
There is online petition for european ubi, need 1 million people end on 25 june
The use value produced by open source software and robots turns into surplus value, but never value because it is not exchanged. Therefore a continual reduction in capital takes place. In other words, the velocity of money keeps dropping proportionate to the surplus use value until the financial system implodes. The only way that the oligarchs and monopolist such as Musk and Zuckerberg can remain, oligarchs, is through the introduction of Universal Basic Income. We are approaching a time when the use of capital as a means of exchange no longer functions because everything works without the need for human intervention. We get closer to a robot economy each day.
I think the problem with universal basic income is the money part of it and the fact that people can buy anything with the money that they want. It would be better to give people the things they need instead like pay for the rent and housing and give people the food and necessities of life maybe even go so far as cable and internet instead of money and see how that works out.
So true meeting basic needs like rent and basic needs transportation needs and other need are met like navy ship room and board meet basic needs things new to survive oh forgot foods got to eat to survive too lazy to cook fast foods business
Problem is, it could make people lazy and not work and maybe even crime would increase (no evidence for that). I think what would work, have a universal income for all unemployed people, give people 600$ a month but only for living expenses and you would haft to find a job first before you can use it. You need to incentive people to work but not make them lazy.
the problem is with this free money is that the government will want alot more from you , like your freedoms ok don't be short sighted
Terrible idea for the US. Already can see people abusing the hell out of this. Probably will do nothing for the homeless problem as most of those people don’t know how to control spending. It’ll just raise inflation more annually, (more money put in means actual value of each dollar is worth less). Money also has to come from somewhere (i.e. more taxes). Better off reallocating current money into directly solving issues like housing, medical, and education.
k
Nah UBI only for the rich people as we have it now “sarcasm”
We already have food stamps and public housing. Give them a check too?
UBI is an alternative to SNAP, TANF, WIC, SSI, etc. It's also "universal" as in even Bill Gates would receive UBI. I don't know of any UBI advocate who is in favor of keeping the existing maze of welfare systems we have now on top of handing all adults a monthly income. Yang's proposal required people depending on welfare to abandon their benefits in order to be eligible for UBI. The poorest people on welfare would actually benefit the least from that system since the existing benefits that they'd have to abandon often cost taxpayers more than $1k/month (combining what we pay to the welfare recipient and the social workers and bureaucrats who operate the welfare systems).
Why don't we just cut taxes? Even for people working and trying to make ends meet after 70 hour weeks could do way better with less income tax. I already give 1/3 of my pay to the government. Why not just cut that down? The government's blow so much of our money as it is. I would rather have more of my own hard earned money than trusting the government with it. I'll invest it in myself that way instead of this idea.
I'm a starving srtest and I should know about it man
This UBI should be a fixed % of GDP, so that UBI decreases as unemployment rises.
"woke" people: robots will destroy our lives!!!!
PC and smartphone: are we a joke to you?
Why not go give all that free money to the homeless
It will now lol
Tax The Automations !!!
Universal BASIC income? Um, yeah, sure. But, I live in a large metropolitan city, so I should receive more money than most because things are more expensive around here. (((holding hand out, palm up))) C'mon, Uncle Sam, cough it up.
In the 2020's, autonomous vehicles, solar power and cheaper batteries will eliminate not only the driving jobs but the whole of the internal combustion industry, and many other related jobs. Millions of people will become permanently unemployed. If not UBI, what do you propose we do, throw those people under the bus?? Furthermore, UBI is not communism. It is capitalism. It's called return on capital. The people provided the infrastructure and important innovations/inventions to mega corporations. It's only capitalistic to want the owed return on investment.
"...UBI is not communism. It is capitalism"
WRONG!
The government is going to take money from the people who are working and then give it to everyone else. That is NOT capitalism, that is Communism. If you don't like the work Communism then call it Socialism since that seems to be in vogue these days. But do not try and call this system capitalist because it is the exact opposite of a system of voluntary exchanging of goods and services for money.
Chip Kerr What about stealing from the people in the country who inherited the infrastructure and important inventions without which there wouldn't be any mega corporations? The wealth of a country is much more to do with what past generations did than what anybody did today or will do in the future. It's a collective prosperity and a large part of it needs to be shared with all the people who are the inheritors of the past socially created assets. If you don't understand that then you understand capitalism and what return on capital is.
"... What about stealing from the people in the country who inherited"
Who is stealing what? And how? Please be specific in your answer.
Chip Kerr I already was specific enough. Just google the word “infrastructure”.
"... I already was specific enough"
No, you weren't. You said "... The people provided the infrastructure and important innovations/inventions to mega corporations..." which is laughably wrong.
The people provided the infrastructure (which you should probably google yourself because you don't seen to understand what is and is not covered under that definition) to all the people. The mega-corporations don't control the infrastructure and don't benefit from it any more or less than you do. Are you prevented from access to the roads and bridges by any corporation? Are you barred from any public building by any corporation, mega or otherwise? Does Walmart get any greater benefit from the interstate highway system than you do? Are they allowed to drive on the roads and not follow the same laws you are required to follow?
So I will ask you again.... Who is stealing what and from whom? And please be specific, cite examples, list your sources, you can do it... dazzle us with your brilliance in this matter.
Universal Basic income means we have to provide opportunities for all the people in the universe to work and to get minimum Basic income for their livelihood , and to live with respect, this has to achieve with the co-operation between the countries, , in my view it is not the concept of giving free money to the people , we have to create opportunities to earn on their own, "Don't swim by holding my hand but teach me how to swim" this is the economic principle which good for the country .if we distribute free money they will become idle and habituated to receive the money freely, wastage of human resources hinders the economy progress and also scope for creating one more class apart from rich,poor ie "free class" ,in long run which creates unrest, and the more burden on the country, so let all should work, earn, and to live happily, no one is exceptional, we have to create opportunities for all according to their ability to earn for their livelihood we want to create healthiest, happiest globe, this is the ultimate aim of universal Basic income. Only Disabled, old age people , forced unemployed,( people wants to work but unable to found ) with no income are eligible to receive free money on monthly basis. "universal Basic Education " in free concept is adoptable. .with the Quality Education, and with the Balanced Regional development, we can reduce the income inequalities and we can able to curb the migrants problem.
Kenya??? Are you sure??
Won’t universal basic income just cause inflation? And who’s going to pay for it?
taxpayers of course
Consumers. A flat tax on sales.
automation (machines, etc)
I believe the wealth should be distributed equally but this this would just create lots of lazy people.
Tax the rich. Get the money from there. Have people spend locally.
Where does this income come from? Oh... that’s right... the TAXPAYER! WAKE UP! What a DEPRESSING STORY!
It's amazing to see people *aware* that this is nothing but bad news. It will only create even more classism here in the United State's. Plus, this fantastical "report" is kind of disgraceful since Finland STOPPED this socialist idea (imagine that, it doesn't work)... P.S. it's great to see this "reporter" would buy extra cases of wine with her "extra money"!? Priorities people, priorities! Lol... If people thought thing's were bad now, just wait if this were implemented (if it gets that far). There are no upsides & of course all people who *need* money would (most likely) be in favor of this style of policies. Unless they grasp basic economics & are slightly informed!
Meshell A if you will get ubi you’re will spend soon
For manicure and pedicure 🤣🤣🤣🤣 don’t get angry just joking you seems pretty up to date lady
Free isn't free
They knew socialism not working well. So they starting makes other new words again!
not socialism, as it's not abolishing the rights to private ownership for the means of production.
chiuansheng aww are the big words confusing you ☹️
I think Kim Jung-il said - "Socialism is difficult when there is a lot of people." But I'm too sure
but, whoever said it, makes sense
instituting UBI here(US) will be much more painful then say another country with a great economy, like Germany.
if it works out - great, poverty goes down and so on
if it creates an economic and societal collapse - well, I hope you stored food and have pets because we're gonna look like Venezuela
not socialism, as it's not abolishing the rights to private ownership for the means of production
Libertarians don't say that LOL
reasonable ones who live in reality do.
I've talked with some of these Yang people. Gang is a good name for them. I vote that we put them on a slow boat to Russia or China where they can enjoy their Socialist Utopia first-hand. They can demand their $1 trillion a year there. Read Yang's book if you want to waste a few hours of your life.
Why does society need to take care of useless jobless people? They should do any kind of work in society while they can.
only the poor need a universal basic income. not the rich.
the rich don't need free money. they are the people who will benefit the most from automation. fire all there human work and use robots.
i want free money sooner the better
I'll take my basic income......and ill buy myself a basic pot farm.....seems pretty basic to me.
Isn't that a form of communism. Why would I bust my ass at work then. Plus, companies dont see the end of the line. Who will buy their products if no one has a job.
Some form of UBI is needed for sure, but one of the biggest problems is the high costs of living, so for Ubi to be effective, it would have to be at least $1500 per month, thus making UBI absolutely un- affordable, so I seriously doubt we will see this anytime soon! Over the years prices have soared thanks to corporate greed, general greed, corruption, bad government policies, etc. We have seen a world that is over-populated, and the more we talked about "ending poverty" the more we have created it !! And right now, we are in such a mess, that there may be no way out anytime soon.