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The Critical Flaw in Universal Basic Income
In short: Capitalism will systematically extract whatever money you pump into the poor and re-concentrate it in the hands of the landlords.
Universal Basic Income (UBI) is a simple idea: pay everyone an income. For anyone who values human welfare it would seem to be a straight-forward and transparently good idea. Pay everyone enough to live, then everyone can afford to live, right? Not exactly.
While I agree with the goal of UBI, I can’t believe in its practical use as a tool to improve the lives of everyone struggling and suffering under the current system. I don’t think it will hurt anyone who is struggling financially, and it may still be something worth doing as a kind of short-term method of assistance, but it won’t and can’t do anything to change the fundamental reality of life for most people under capitalism.
The flaw is this: So long as essential products services are market-based — i.e. priced arbitrarily — whatever money you give to those in need will be rapidly concentrated into the hands of the few who are granted ownership of those essential products and services. The floating prices of necessities under capitalism means landlords of all types will simply demand more money once they know their customers have more money. For things like food, water, housing, heating, and healthcare, people have no choice…
