Thursday, October 27, 2016

My Second Thoughts About Universal Basic Income - Bloomberg View

My Second Thoughts About Universal Basic Income - Bloomberg View



As it stands, most U.S. welfare programs are tied to the institution of work. That leaves gaps in the safety net, and frequently analysts will decry this imperfect coverage. I take this criticism seriously, but I see merit in tying welfare to work as a symbolic commitment to certain American ideals. It’s as if we are putting up a big sign saying, “America is about coming here to work and get ahead!” Over time, that changes the mix of immigrants the U.S. attracts and shapes the culture for the better.

I wonder whether this cultural and symbolic commitment to work might do greater humanitarian good than a transfer policy that is on the surface more generous. If you think of the U.S. as the major source of innovation for the world, prioritizing a work ethic over comprehensive welfare coverage might prove beneficial.

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