If I give you $8k, you will probably value marginal dollars less than you used to.
With an UBI you actually keep most of your marginal dollars that you earn at that point. In many systems where earning more means that you lose government support, earning a few marginal dollars isn’t very helpful as the unemployed have a very high marginal tax rate when you account for them losing their benefits when taking a low paying job.
With an UBI you actually keep most of your marginal dollars that you earn at that point. In many systems where earning more means that you lose government support, earning a few marginal dollars isn’t very helpful as the unemployed have a very high marginal tax rate when you account for them losing their benefits when taking a low paying job.