Universal Basic Income will Accelerate Innovation by Reducing Our Fear of Failure
Scott Santens

This ignores the basic facts of what money actually is.

Long time ago, you baked bread or raised sheep or made shoes or whatever. Then you traded whatever you had for other goods someone else had produced. Somewhere along the line someone got the idea of using shells or other items as a representation of the things, so you didn’t have to carry around bread and sheep all over the place. You could trade smaller coins or shells which were much easier to carry, but by agreement represented an actual thing of value.

So money represents production. A real, actual thing, or service, or labor that helped to make something.

You trade ten dollars for three loaves of bread instead of bringing three gallons of milk to market. The money is a medium of exchange of goods or services. It is not a ‘thing’ in itself; it represents real things.

Failing economies (Greece, Spain, Venezuela, etc) ignore this. Problems stem from the fact that money no longer is backed by real actual production. If nobody is actually making things, or working, there is a collapse. In Venezuela the economy was shifted entirely to oil (by government intervention, not market forces). Nobody there makes anything else anymore. Their whole GDP is dominated by oil. Actual market forces that drive the value of money are ignored and prices were controlled by the government. As a result an entire sub-economy has arisen to circumvent the government mandates, but because nobody is making shoes or bread the whole system is suffering wildly.

A ‘basic income’ or ‘mincome’ is a nice dream for someone who is lazy and doesn’t want to do anything. But it also ignores basic human nature. If you reward nonproduction you’ll get nonproduction. Pay someone to sit around and play video games all day and that’s what you’ll get. But don’t be surprised when the society eventually collapses.

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