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286 sats \ 4 replies \ @didiplaywell 16 Jul \ on: Money for nothing: is universal basic income about to transform society? news
I used to endorse UBI until I understood the fundamentals of a monetary system, then I endorsed Bitcoin. Any UBI scheme is utter BS, it's simply not how economy works, in any circumstance. The concept of UBI is a natural involution of money from following the fiat line of thought. A deflationary economy, on the other hand, encompasses in a natural way the event of a dramatic rise in productivity, for it leads to the prices of the goods to decrease. In a fiat system that rise implies emission, which will go only to bonds investors if not redistributed by the government, leading to an inflationary death spiral even in a context of abundance.
Welfare but direct cash assistance
I think the negative income tax is the least bad handout or assistance program
You want to provide assistance but maintain incentive to earn a higher income
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Private charities or organizations are better for providing assistance
By private charities I am excluding NGO which are de facto government entities
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The thing is that, under a deflationary economy, no welfare scheme is needed. Welfare is a consequence of fiat due to being the state the one that mints the new coins (best case scenario, on pair with economic growth). In a deflationary economy, economic growth naturally leads to a re-appreciation of the money you already have, equivalent in it's effect to the interests rates in the fiat system, but non-dependent on a central authority.
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