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originally posted by: ScepticScot
a reply to: EternalShadow
For a country with full taxation and spending powers it is perfectly possible to make a UBI revenue neutral*.
Scotland has very limited powers and a shared currency so would be extremely difficult to implement.
*Which is not to say you would want it to be revenue neutral but it is an option.
originally posted by: audubon
£150 a week isn't much, and in real terms it would represent a massive cut for current social security claimants. This UBI trial is aiming at up to £150 a week, so it's probably going to be considerably less. And it would replace (not enhance) all current forms of benefit income including unemployment payments (currently £70 a week) and housing allowance.
The UK Government pays unemployed people £70 a week because that is the bare minimum it thinks you need to survive. Anyone who has spent any time on the dole will tell you that it is not enough to get by on for anything over a month or two, after which you are simply plunged into poverty and debt.
(Up to) £150 minus £70 leaves (up to) £80 a week to cover everything. The Scottish government says that the rent for a room in a shared house (the cheapest rental option) is £340 a month.
Taking one month as roughly four weeks, that means you need to find about £85 a week just to get a roof over your head. In the most basic scenario. If you are on the next housing rung, a one-bedroom flat, the average rent is £482 a month or £120 a week - so you now have £30 left each week to live off (£120 a month). This is not possible according to the Government itself.
I'm not sure which figures Nicola Sturgeon is relying on, if she's not relying on the Scottish govt rent statistics cited above. But this looks like another example of the SNP's magical maths (like their plan to sell oil at $100 a barrel).
However, if you are in Scotland and are reliant on any benefits (unemployment, disability, pension, etc), you have a great deal to fear from this proposal. It's not a hand-out, it would represent a savage cut.
originally posted by: Ddrneville
It's just a social "catching net", so people that are suddenly out of a job don't immediately fall in a black hole or in extreme poverty...
So you have some time to get your life back together
originally posted by: EternalShadow
originally posted by: ScepticScot
a reply to: EternalShadow
For a country with full taxation and spending powers it is perfectly possible to make a UBI revenue neutral*.
Scotland has very limited powers and a shared currency so would be extremely difficult to implement.
*Which is not to say you would want it to be revenue neutral but it is an option.
Is it possible, in the long run, that there could be reached an equilibrium and surplus if taxes are maintained at a certain level for period of time to cope with the outflow of benefits, being that the velocity of money would increase throughout the economy as spending is more available?
originally posted by: carewemust
originally posted by: Ddrneville
It's just a social "catching net", so people that are suddenly out of a job don't immediately fall in a black hole or in extreme poverty...
So you have some time to get your life back together
Didn't the OP say that all Scottish citizens get the dough...every week for the rest of their life?
originally posted by: carewemust
originally posted by: Ddrneville
It's just a social "catching net", so people that are suddenly out of a job don't immediately fall in a black hole or in extreme poverty...
So you have some time to get your life back together
Didn't the OP say that all Scottish citizens get the dough...every week for the rest of their life?
originally posted by: Ddrneville
a reply to: carewemust
Yeah, but i suppose those are unimployed are more targeted, but on the other hand, i see general (food..etc.) prices go up with this system, so the poor are once again the losers
originally posted by: ScepticScot
a reply to: EternalShadow
That is actually a very good point. There would be affects on consumer lending from a guaranteed income.
There might be good results such as easier for young people to get mortgages. However there could also be a lot of unscrupulous lending based on lump sums now, in exchange for long-term access to someone's UBI payments.