Thursday, November 23, 2017

UBI not Reparations


 While Black People, second only to Native Americans, deserve reparations for past discrimination, practically determining who gets what reparations for which discrimination, is an impossible political problem.  Instead provide UBI for all in the form of a Social Security Stipend for all adults sufficient to cover basic needs paid for by a Social Security tax on all gross income over the stipend, no deductions, no caps, and all income from any source formal, informal, legal or not included.* 

 Those who really deserve reparations and their communities will benefit the most from this outside income, since most who deserve reparations are living hand to mouth and will spend the UBI in their neighborhood on goods and services provided by others who may have a bit more to invest either by saving a bit of the UBI or investing other resources saved from outside jobs or other income.  The economic multiplier in neighborhoods of folks who have a history of systematic discrimination is nearly 3 times.  That is each outside dollar is recycled in the neighborhood three times before it is lost to goods and services outside the hood. UBI to more well off people will be either invested and out of the economy or spent in the wider economy benefiting all working people.  

 *The above is a modified comment on a stonekettle post on reparations for blacks.

 For a discussion of UBI


 A better way to pay for UBI is a progressive VAT

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