People are productive if allowed to be because they want to take care of themselves, be independent and wealthy.
Government disincentivises productivity through taxation and regulation. When you are productive, they tax more of your wealth. When you want to act independently, you are regulated.
Government makes it more difficult to take care of yourself so you vote for more government to take care of you.
Andrew Yang’s explanation of the “Freedom Dividend” as non-inflationary on Rogan was not convincing to me, because he was talking about the size of the macro economy… like 20 trillion.
He said adding a trillions into that economy would be unnoticeable as far as creating inflation, but many of those trillions in our economy are locked into the financial sector as digital trades, not real money that will every be liquid or will ever be used for day-to-day expenses.
If we did have that much liquid money injected into the real economy the results would be instant inflation by any historical example, or even by common sense understanding of supply and demand.
$1000 would be instantly worthless and his re-election campaign would have be to raise it to $2000… or $5000.
Calling it the Freedom Dividend, is the first lie. Marketing. Spin.
They could call it People’s Quantitative Easing, or UBI, but it’s all just Helicopter Money and socialism. It’s all on the road to a failed economy that requires total government control (Communism) to solve it.
Not to mention that the automation apocalypse might be coming, but gradually over many decades.
The dude sounds to me like a total liar, a snake oil salesman, and pied piper for the financially illiterate. He’s like Bernie 2.0, all empty promises and suspect motivations.
The real causes of American’s decreasing quality of life are
- “free-trade” deals,
- unchecked illegal immigration,
- government over-taxation and regulation of people and small businesses in favor of multinational corporations and billionaires.
The New Zeroes
by The Zman
“There’s a pretty good real world example of this. The government decided to do something to help working class people get into college. Since many need remedial help, before taking on college work, the scheme was to offer a subsidy to be used for community colleges. The students would use the money to prep for college then head off to a four year university, presumably using loans and aid at that level. The result, however, was the community colleges just raised their tuition by about 65% of the subsidy.
The Universal Basic Income would most likely follow the same pattern. By guaranteeing that no one would earn less than some amount, in lieu of traditional welfare payments, the absolute floor becomes the subsidy level. In effect, the new zero becomes the subsidy so all other wages would be based off that, as the price of goods and services would correspondingly adjust. It is really no different than printing up money and dropping it from helicopters into the ghetto. The UBI would be as inflationary as debasing the currency.”