The Libertarian Case for a Basic Income - 0 views
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Still skeptical? Well, here are three libertarian arguments in support of a Basic Income Guarantee. I begin with a relatively weak proposal that even most hard-core libertarians should be even to accept. I then move to stronger proposals that involve some deviation from the plumb-line view. But only justifiable deviations, of course.
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Current federal social welfare programs in the United States are an expensive, complicated mess. According to Michael Tanner, the federal government spent more than $668 billion on over one hundred and twenty-six anti-poverty programs in 2012. When you add in the $284 billion spent by state and local governments, that amounts to $20,610 for every poor person in America.
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Wouldn’t it be better just to write the poor a check?
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A Basic Income Guarantee would also be considerably less paternalistic then the current welfare state, which is the bastard child of “conservative judgment and progressive condescension” toward the poor, in Andrea Castillo’s choice words.
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Conservatives want to help the poor, but only if they can demonstrate that they deserve it by jumping through a series of hoops meant to demonstrate their willingness to work, to stay off drugs, and preferably to settle down into a nice, stable, bourgeois family life.
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2) A Basic Income Guarantee might be required on libertarian grounds as reparation for past injustice.
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One of libertarianism’s most distinctive commitments is its belief in the near-inviolability of private property rights. But it does not follow from this commitment that the existing distribution of property rights ought to be regarded as inviolable, because the existing distribution is in many ways the product of past acts of uncompensated theft and violence.
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However attractive libertarianism might be in theory, “Libertarianism…Starting Now!” has the ring of special pleading, especially when it comes from the mouths of people who have by and large emerged at the top of the bloody and murderous mess that is our collective history.
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But Nozick’s entitlement theory of justice is a historical one, and an important component of that theory is a “principle of rectification” to deal with past injustice. Nozick himself provided almost no details
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In a world in which all property was acquired by peaceful processes of labor-mixing and voluntary trade, a tax-funded Basic Income Guarantee might plausibly be held to violate libertarian rights. But our world is not that world. And since we do not have the information that would be necessary to engage in a precise rectification of past injustices, and since simply ignoring those injustices seems unfair, perhaps something like a Basic Income Guarantee can be justified as an approximate rectification?
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Both Milton Friedman and Friedrich Hayek advocated for something like a Basic Income Guarantee as a proper function of government, though on somewhat different grounds.
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And so, Friedman concludes, some “governmental action to alleviate poverty” is justified. Specifically, government is justified in setting “a floor under the standard of life of every person in the community,” a floor that takes the form of his famous “Negative Income Tax” proposal.
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Friedrich Hayek’s argument, appearing 17 years later in volume 3 of his Law, Legislation, and Liberty, is even more powerful. Here’s the crucial passage:The assurance of a certain minimum income for everyone, or a sort of floor below which nobody need fall even when he is unable to provide for himself, appears not only to be wholly legitimate protection against a risk common to all, but a necessary part of the Great Society in which the individual no longer has specific claims on the members of the particular small group into which he was born. (emphasis added)
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But as my colleague Kevin Vallier has documented repeatedly, Hayek was not opposed to the welfare state as such (not even in the Road to Serfdom). At the very least, he regarded certain aspects of the welfare state as permissible options that states might pursue.
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But the passage above suggests that he may have had an even stronger idea in mind - that a basic income is not merely a permissible option but a mandatory requirement of democratic legitimacy - a policy that must be instituted in order to justify the coercive power that even a Hayekian state would exercise over its citizens.
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So, on most proposals, everybody gets a check each month. “Unconditional” here means mostly that the check is not conditional on one’s wealth or poverty or willingness to work.
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A Negative Income Tax involves issuing a credit to those who fall below the threshold of tax liability, based on how far below the threshold they fall.
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So the amount of money one receives (the “negative income tax”) decreases as ones earnings push one up to the threshold of tax liability, until it reaches zero, and then as one earns more money one begins to pay the government money (the “positive income tax”).
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The Earned Income Tax Credit is the policy we actually have in place currently in the United States.
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It was inspired by Friedman’s Negative Income Tax proposal, but falls short in that it applies only to persons who are actually working.
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1) Disincentives - One of the most common objections to Basic Income Guarantees is that they would create objectionably strong disincentives to employment.
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After all, with a Basic Income Guarantee, the money you get is yours to keep. You don’t lose it if you take a job and start earning money. And so in that way the disincentives to employment it creates are probably less severe than those created by currently existing welfare programs where employment income is often a bar to eligibility.
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2) Effects on Migration - When most people think about helping the poor, they forget about two groups that are largely invisible - poor people in other countries, and poor people who haven’t been born yet
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With respect to the first of those groups, I think (and have argued before) that there is a real worry that a Basic Income Guarantee in the United States would create pressures to restrict immigration even more than it already is.
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That worries me, because I think the last thing anybody with a bleeding heart ought to want to do is to block the poorest of the poor from access to what has been one of the most effective anti-poverty programs ever devised - namely, a policy of relatively open immigration into the relatively free economy of the United States.
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3) Effects on Economic Growth - Even a modest slowdown of economic growth can have dramatic effects when compounded over a period of decades.
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And so even if whatever marginal disincentives a Basic Income Guarantee would produce wouldn’t do much to hurt currently existing people, it might do a lot to hurt people who will be born at some point in the future.
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Tyler Cowen and Jim Manzi put forward what seem to me to be the most damning objections to a Basic Income Guarantee - that however attractive the idea may be in theory, any actually implemented policy will be subject to political tinkering and rent-seeking until it starts to look just as bad as, if not worse than, what we’ve already got.