Hi Neil,
Matthew Davidson
1

The basic income means that you are requiring somebody else to use up their finite lifespan to produce output, take it from them by force and give it to somebody who *refuses* to contribute to the production process. There is no value exchange, only theft. That is no different to the process the idle rich use today — and are rightly resented for it.

So you have to justify, politically, why society should support people *for their entire life* who simply refuse to contribute when they clearly can. Good luck with that one.

Whatever you have in mind probably isn’t the basic income — which is a living income paid by the state to an individual for their entire life regardless of what else they do or whereabouts in the business cycle we are.

Anything else is working tax credits, disability pensions, old age pensions, or child benefit. The Job Guarantee replaces them all with a simple demand: you are required to work for the wage unless exempted by age or infirmity. If you are exempted then you still get the supporting income — which neatly covers sickness, disability, old-age, child benefits.

Everything else is just a job, which could also covers caring, looking for a better job and enterprise allowances — depending upon how society sees those roles in terms of value contribution.

Taxation is lower under a Job Guarantee because the state income paid out varies over the cycle — unlike a basic income which does not. Since the state income is automatically withdrawn when a person transitions to the private sector, part of the stabilisation occurs on the spending side during a boom. Which means you can have lower tax rates since there is automatically less flow to withdraw in a boom. Lower tax rates are always better, politically and psychologically, than higher tax rates.

Giving free money to the entitled middle classes might go down well in luvvie-ville, but it sticks in the craw of the working class. They can see straight through it and will never support it.

Plus if the middle classes want to provide a basic income under a Job Guarantee, there is a simple mechanism for them to do so. They may even get tax relief on it.

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