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RE: Universal Basic Income: The Crypto Way

in #economy7 years ago

It is an interesting question, i know traditional economics dictates that if you give people money directly, it will not get them out of poverty, and what you need is to give them incentives to make sure they work, but as it seems the direct subsidy was never high enough to actually keep people living at a normal standard, and with low skilled jobs are going to disappear it is possible that UBI is the way. No doubt that crypto will allow for a transparent way to distribute wealth to people that need it and give a very clear insight on how they are actually using it. I guess time will tell.

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Thanks. I find it interesting how traditional economic laws fail to grasp the crypto reality. I guess time will tell, but i am going to enjoy watching it unfold.

Yup, i found it hilarious when some old school rating system released a crypto currency rating. Pretty much like letting the horse carriage riders of 100 years ago to rate new car models, dafuq to they know right!?

Feel free to follow for more interesting questions to come :-)

Traditional economics is in trouble. There were already many experiments I read about showing that giving money directly is the best way.

I remember one example. There is a famine in some country. Other countries want to help so one of them has an idea to send bunch of cows. However many farmers need for example seeds. So they sell the cows for much lower price (especially that there is a surplus of cattle). Most money went to the original owners of the cows and charity and transportation companies. In essence this was very ineffective distribution right?

Another example is in form of a question :) Do you know what to buy for the birthday to your friends? Most people have problem with that. How would they know what to give to the people on the other side of the world? :)

And another fact about getting people out of poverty is one important feature of UBI - no means testing. Therefore we can get rid of the so called poverty traps - people who are in poverty with social systems today loose most of their income for (usually) just slightly more (but requiring 40h work per week). And they loose dignity and precious time going to social services to proof they are poor and need help.