Peter Cohen
I was one of those kids who was too smart to pay attention in school, though of course that may mean that I am not as smart as I think I am. I am opinionated but try hard to do my homework as I do not like to be wrong. I know a lot more than most universi

Free market support for a basic income guarantee.

The existing social safety net programs such as welfare are a disastrous approach to mitigating the plight of poverty. While not the intention, the literal effect of welfare to to pay people to not work. It does not solve the problem of poverty, it institutionalizes it.

If we are to have a social safety net that actually solves the problem of poverty, we need to reverse this disincentive to participate, to be productive. The vast majority of people will find some means to be productive simply because doing so makes themselves better off. The fact that their productivity also makes the world better off is from their perspective a happy coincidence, if they are even aware of economics to that degree.

What most of those who would object to a basic income guarantee fail to understand is that this is not a windfall giveaway that will require huge tax increases. It is perfectly feasible to structure an initial basic income guarantee that would not cost one dollar more than we currently spend on transfer income programs. This is because it would replace several of the existing biggest budget transfer income programs and use those monies in a much more productive fashion. Critically, the salient point that needs to be driven home is that the money given through the basic income guarantee is ultimately taxed back from those who do not need it, and that is how the program is able to be affordable.