Will Universal Basic Income Save The Economy?

Don't be so quick to object. 

I am no economist although I did do Economics A Level, and this is a blog post not an in-depth analysis based on hours of academic research. That said, here are some half-baked ideas after reading a few popular articles about how to save the economy. Please feel free to discuss it with me in the comments or on facebook but don't be rude. This is an idea that deserves a conversation at least.

The idea of a universal basic income (UBI) is not new. It means that every individual gets a government grant to cover rent, modest utilities, basic clothing, and food. Here are some benefits of this system:

1. Basic needs. No one need worry about basic needs.
2. Social benefits. UBI is given to individuals, not households, so people in difficult marriages would be able to leave but otoh, it would encourage people to live in families or shared accommodation in order to pool resources.
3. Lifestyle, health and relationships. More free time will allow people to do more voluntary work, invest in family relationships, be less stressed, and pursue employment that makes them happy rather than being forced to take jobs they hate.
4. Empower the workforce. Workers will not need to accept bad working conditions as they can now walk away. As an example, I would rather work in a shop than clean a school or hospital. As no one needs to clean a school to keep a roof over their heads, less desirable jobs like this would have to pay more in order to attract employees. Some people with limited employable skills would take these jobs because they pay more than easier employment.
5. The corona effect. After corona we will have proved that working remotely is effective. Fewer employees need to live close to work. This will allow people to move back to once thriving but now dying towns where there is plenty of cheap housing. More housing can be built in sparsely populated areas far from the centres. This will reduce demand in the centres and rents/house prices will go down. Meanwhile in the new areas, they will need new schools, shops and other services to help build up a thriving economy and society. Living will be cheaper.
6. Increased employment opportunities. Shared and part time employment will distribute the available work hours among more people. No one will need to work 10 hours a day so most people will opt to work fewer hours.

Some potential problems and why they're not necessarily founded.

1. Where will the money come from? Other social benefits, including pensions, will be stopped. Most people will still work and be taxed (see below). Increase taxation on carbon footprints for industry and commerce, not individuals. Inheritance tax (this one hurts but it encourages people to spend, it encourages a slower pace of life i.e. not chasing wealth that you'll never spend and in a fairer society it evens out the starting line). Property and land tax. VAT.
2. Why would anyone work? Because most of us want to go out to eat once in while, go on holiday, travel a bit, buy things other than basics, upgrade our lifestyles, pursue hobbies, redecorate, etc... Also, we live in communities where we need to keep up with the social norms be it hosting barbecues or evenings/days out with friends.
Most people want to feel useful, the social aspect of getting out and meeting people, idleness becomes boring after a while.
There will also still be a status attached to contributing to society, a moral aspect that most of us will buy into as we already do.

Notes:
*When I write 'most people' this is just my opinion not a proven statistic.
*Although limited experiments on UBI have been done around the world and it seems that my opinion is largely supported.
*I have not done the maths and I have no idea if this is financially viable.
*I wouldn't even know how to do the financial analysis of this.
*I'm not recommending UBI but rather opening the conversation.
*There are many articles online about UBI, just google it.
*I did google it so please don't send me the articles you find online. Just comment on what you found interesting.

The Essential Emergency Fund And More Decluttering - R2BC

Some minimalizing progress and some less good events that, with a bit of Pollyanna attitude, I can turn around to be a R2BC. I'm joining the R2BC linky over with Becky on Lakes Single Mum.

1
Decluttering Books

I wrote the other day about sorting out all my books and letting go of my academic dreams. In addition to all the academic books, I got rid of 20 year old guidebooks to various cities around the world, children's books that DD has grown out of and which we didn't love, various out-of-date reference books, and a few novels that I'm never going to read. About 100 books in all.

In addition to the books in the photo which are all being given away, donated, or possibly sold; there were also a pile of magazines and the city guides that went straight in the bin.

That seems incredible as I sort and donate books every year for the Yedidya Bazaar in March. Only two years ago I got rid of 200 books (although that was the first cull in about 25 years). I think it's a process and some books it takes you longer to realize and come to terms with the fact that you don't need them anymore.

SOLD!

2
Empty Furniture

I decluttered a whole chest of drawers out of its usefulness and sold it on facebook. The guy who bought it also took an old armchair down for me and put it by the bins. Within half an hour I saw a man stop and load it into his car.

I also have one empty bookcase but I'm not sure what I'm going to do with it yet.

Gone to a better home in the back of a passing car

3
Not So Wonderful

I had a blocked sink so I had to get the plumber in. It cost not a trivial amount of money. On the other hand, he changed the crappy IKEA drain set-up underneath to a much more efficient arrangement that goes straight into the wall without the long, narrow pipe, which is the part that gets blocked.

I swallowed that cost and moved on. However, I was then alerted by a neighbour that my solar heated water boiler on the roof was leaking big time. Having established that the tank that was falling apart was indeed mine, I needed to get it fixed. I bought this apartment 16 years ago and inherited all the equipment on the roof. I've never had to fix or replace any of it, so it was time.

Yesterday they came with a new boiler, two new solar panels, and a new stand as the old one was rusted through. All new. All fully guaranteed for 5 years. All costing an absolute fortune. But I chose the best and not the cheapest in the hope that I won't be dealing with this again for another 20 years.

4
Emergency Fund

This is when you fully understand how important it is to have an emergency fund. And how important it is not to dip into it for months that are a bit tight or if you want to treat yourself. It's not for an impulsive holiday, a new sofa, or even the new fridge which I had to buy only a few months ago and which could be put on 12 monthly payments without added interest.

The new solar boiler had to be fixed asap as water was dripping into my upstairs neighbour's apartment. And I had to pay all of it up front. Luckily I have been paying small monthly amounts into an emergency fund all year.

Usually I need to use some of it to get us through the summer as I don't get paid for teaching my summer courses until the end of September and I don't get paid an August salary for teaching in school. I was getting excited because we didn't go away this summer and various tax rebates came in so I thought I was going to get through the whole summer without touching the fund. I had dreams of rolling it over for another year. Man dreams and God laughs.

It still makes things very tight for September as the emergency fund won't cover the full amount of the waterworks. But it makes it doable instead of impossible. So we'll do it and be cheerful about having the foresight to save for emergencies.