it’s pretty unclear from the research whether NIT actually reduces employment (the main side effect of penalizing productivity). Of course theoretically it should, but the data isn’t really conclusive in either direction.
I think as a general rule, when something theoretically is supposed to happen and we do not have conclusive practical data, its reasonable to assume that it indeed will happen.
You’d rather have a program that costs $4 trillion with zero maintenance costs, than a similarly impactful program that costs $~650 billion with maintenance costs?
Depends on the maintenance cost, obviously. But again the problem here is that our best theories strongly predict that impact will not be similar. NIT creates perversive incentives that UBI doesn’t. And incentives matter—economy isn’t a zero sum game.
So a more appropriate question is: Would you rather invest 4 trillions in a company which evaluation will go up or 650 billions in a company which evaluation will go down?
pretty dicey political stance.
I predict that implementation of general NIT will face much more pushback than implementation of UBI. No matter how minor are the required tweaks to EITC they are politically unfeasible in US. Meanwhile, UBI has support all around the political spectrum, from leftists to libertarians.
Looking forward to the next part then.
I think as a general rule, when something theoretically is supposed to happen and we do not have conclusive practical data, its reasonable to assume that it indeed will happen.
Depends on the maintenance cost, obviously. But again the problem here is that our best theories strongly predict that impact will not be similar. NIT creates perversive incentives that UBI doesn’t. And incentives matter—economy isn’t a zero sum game.
So a more appropriate question is: Would you rather invest 4 trillions in a company which evaluation will go up or 650 billions in a company which evaluation will go down?
I predict that implementation of general NIT will face much more pushback than implementation of UBI. No matter how minor are the required tweaks to EITC they are politically unfeasible in US. Meanwhile, UBI has support all around the political spectrum, from leftists to libertarians.