Solution to many of today’s USA Systemic Problems.
Homelessness – Minimum Wage – Economic Growth – Reparations
Income Tax Reform – Bloated Government – Unemployment Insurance
Universal Basic Health Care – Universal Basic Child Care
Universal Basic Education – Universal Basic Nutritional Needs
Crime Reduction – Prisons and War on Drugs – Police Reform
Pension System Reform – Other problems too
Hard to believe? Sure. But, all of these problems must be dealt with in a systemic approach at the root cause level, Unequal Opportunity. Not unequal wealth or income distribution which will always be the situation, see Fact of Life.
What follows is a brief summary of what would result from a Freedom Dividend (FD) as proposed by Andrew Yang. A follow-up analysis of how this impacts ALL of the above “problems” can then be made. Quite easily, actually.
Every USA 18 yrs or older adult citizen, or person on citizen path, gets $1,000/Mo Freedom Dividend according to Andrew Yang’s Policy.
The Freedom Dividend is optional, but replaces all other forms of welfare for those who Opt In. Thus, it costs little more than the current complex and debilitating welfare system. A (vast) majority of most USA citizens will adopt it over time for many reasons.
No qualifications other than citizenship. Might include DACA too.
This will result in a massive reduction of government employees as the various welfare programs are reduced in size. But, they too get the Freedom Dividend.
This will result in a growing healthy economy. Most of this money will be spent immediately. Rich people can give their FD away if they like.
This is possible thanks to the wonderful automation technologies which are making the production of physical goods less and less expensive on an exponential curve. Just look at Calculators as an example. Or Phones or Computers, or Travel like Uber or Rentals like Airbnb, etc., Fresh vegetables and other wholesome food. An ever expanding list.
New technologies like Print on Demand, and A.I. Smart Machines and Robots and IoE are revolutionizing the USA economy once again.
In many great communities two people can live very well on $2,000/Mo. Equal to $24K/Year Net Income. This is equivalent to one full time job at about $13/Hr since there are no payroll deductions. In these communities the current lowest wage earners earn less than $10/Hr before Payroll Deductions.
For example, in Sullivan, Indiana two people can rent a comfortable mobile home for about $600 per month. Two people can eat a healthful diet for about $10/day if they cook at home. A smart phone is about $40/Mo, etc.
Significantly , a person can now do extra work for more income if the person wants to have more money to spend. No limit. This does not affect the FD like it affects other welfare programs which are designed to keep people on welfare poor and restrict their job opportunities.
This will enable people to perform many services they like to do for as little as they like for extra income. No loss in the Freedom Dividend. Then as they become more skilled they can earn more and more if they want to.
Often a person must start out working for almost nothing until the person gains knowledge and skills in their field of interest. The minimum wage prohibits this and is, thus, a Barrier for beginning workers. See Sowell’s Basic Economics.
Our current welfare system penalizes a person for earning money.
Also, we could eliminate the Personal Income Tax and go to a VAT tax. There are many advantages to this we can discuss at another time.
Basic Health Care clinics could open up and people could afford to pay the modest costs of using them. They would be very efficient thanks to modern technologies and we could eliminate health care insurance, or use it for major health problems. This would be much better than ‘Medicare for All’.
The Freedom Dividend will empower new businesses everywhere including current low income communities to open up to serve people and this can happen because people have the money to spend as customers and business owners don’t have to earn enough profit to live themselves.
Suppose a couple has one or more children. One parent could stay home and raise the children while the other earned some extra income. They are already getting $2,000/Mo net income. A family could live in a mobile home for not too much more than a couple.
Or, both could work if they want to and then afford child care. People could open up businesses like child care and charge much less since the owners and employees have a FD.
Many people will earn much more money as they develop skills and live in much more expensive houses and take expensive vacations and have expensive toys.
Many people can do well in the Gig economy since they don’t have to earn a basic living all the time especially in the beginning as they develop a client base.
A person could just choose to camp out and travel around. You could do this on $2,000/Mo if you teamed up with someone. Personal Freedom.
Some people could just spend their time playing video games. That’s OK. It will not harm anyone else. Personal Freedom.
We should also eliminate the War on Drugs. Then legal drugs would be cheap and safe. If a person just wants to laze around and take drugs, that’s ok too.
Young people will not have to resort to crime to survive. Indeed, if one is convicted of committing a crime then the one loses the FD. A pretty good deterrent to crime.
We could release all prisoners who are not a threat and who will not need to resort to crimes to survive. After all receipt of the FD will be conditioned on not committing future crimes.
There could be communes. Just imagine ten people living in a commune. This could be easily done for $10,000/Mo. Just think what they could accomplish.
Social Security could be reformed in obvious ways.
Underfunded Pension Systems could be reformed and dealt with humanely.
Also, people could invest in various assets and would not have to worry about survival if these assets became worthless. A great boost for new businesses and Gig jobs.
The Freedom Dividend would empower and spur tremendous Economic Growth that everyone could participate it. This is true FREEDOM.
This is why this is called a Freedom Dividend.
Ultimately, it will be very good for the economy for what should be obvious reasons. Everyone will have money to spend. After all, someone has to buy all the stuff produced by the robots in our factories.
Yes, there will still be billionaires. That is good too. Why?
Because these are the investors that invest in large endeavors that would otherwise not happen.
I doubt if Elon Musk eats more food or consumes more stuff than most of us, but just think of Space X and its profound implications for Sapiens in the future, plus all his other amazing companies which could only have been started by a very rich person.
Ditto, Jeff Bezos and Blue Origin.
Amazon itself has created much wealth for virtually all of its customers in terms of things they can acquire easily and inexpensively.
Fact of Life, in a creative economy there will always be a Power Law Distribution of Income and Wealth because of the Amplified Pareto Principle which is unavoidable. Fortunately, EVERYONE benefits from this.
I can tell you that poor people today have much greater material wealth than poor people did in the mid 20th Century when I was a boy. And, it will only increase as a creative capitalist economy grows. But, so will the so called Income and Wealth Inequality expand.
This is a very brief description of how correcting the Root Cause of most of our current “problems” can correct the problems.
This replaces classical pure Capitalism or Socialism.
This is what 21st Century Capitalism should be. Very Productive and Humane.
Everyone’s Quality of Life will be great, not just the upper 10% in today’s old 20th Century Capitalism.
This should be easy for both parties and both Conservative and Progressives to embrace since all citizens benefit.
However, it is true that many of today’s organizations and institutions will be impacted and have to transform or expire. But, that has always been the case as our Civilization has evolved.
We will not be able to tackle the individual problems we face today one by one.
Our leaders must attack this in a overall Systemic Way.
It all starts with a Foundation, which could be the Freedom Dividend.