Tag Archives: socialism

Universal Basic Income, VAT, and baby bonds

Leave a reply

A few 2020 Presidential contender highlights:

  • Andrew Yang (polling at about 1%) is promoting a Universal Basic Income of $1000/month for all U.S. citizens 18 and older regardless of income. He would pay for it by scaling back some other assistance programs and instituting…a VAT.
  • Cory Booker (polling at about 2%) is promoting “baby bonds”, where every baby gets a $1000 bond annually, and low-income children get up to an additional $2000 per year.

These are all ideas that (any) Democratic President and Congress could explore together, if they were to get a chance and managed to keep the corporate lobbyists at bay. I am 1000% in favor of VAT. It is just one of those things that all other modern countries do and the U.S. does not. It works and we just need to do it. Other taxes people hate can be reduced.

Both the UBI and baby bond ideas are supposed to address inequality quickly. The baby bond idea is supposed to particularly help racial disparities in wealth very quickly, but there is no reason the UBI could not do that with some fine-tuning. I like the idea of setting kids up with assets in principal, but in practice I am afraid unscrupulous relatives, Wall Street and payday lenders will find a way to take advantage of them. The UBI would essentially just be a “Social Security for All” scheme. We have the bureaucracy for that all set up and ready to go, so it seems practical to me. The only other difference I see between the two is that the government can more easily go back on a promise to pay you in the future than it can take money away from you that it has already paid. But of course it can do either, let’s not be naive.

My verdict – I’d like to see a VAT and a carbon tax used to fund education, infrastructure, and research. All of these things should help keep people busy if technology really does lead to unemployment. People can study to upgrade their knowledge and skills, design and build infrastructure and other types of capital goods, or go into research and teaching. Unemployment and disability insurance could also be beefed up to cover the gaps.

May 2019 in Review

Leave a reply

This wasn’t my most prolific writing (or reading) month ever. In fact, it my have been my worst. But here are a few highlights of what I did get around to.

Most frightening and/or depressing story:

  • Without improvements in battery design, the demand for materials needed to make the batteries might negate the environmental benefits of the batteries. I’m not really all that frightened or depressed about this because I assume designs will improve. Like I said, it was slim pickings this month.

Most hopeful story:

  • Planting native plants in your garden really can make a difference for biodiversity.

Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both:

  • Joseph Stiglitz suggested an idea for a “free college” program where college is funded by a progressive tax on post-graduation earnings.

 

March 2019 in Review

Leave a reply

Most frightening and/or depressing story:

Most hopeful story:

  • The Green New Deal, if fleshed out into a serious plan, has potential to slow or reverse the decline of the United States.

Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both:

  • China is looking into space-based solar arrays. Also, injecting sulfate dust into the atmosphere could actually boost rice yields because rice is more sensitive to temperature than light, at least within the ranges studied. This all suggests that solutions to climate change that do not necessarily involve an end to fossil fuel burning and carbon emissions are possible with existing or very near future technology.


February 2019 in Review

Leave a reply

Most frightening and/or depressing story:

Most hopeful story:

  • Here is the boringly simple western European formula for social and economic success: “public health care, nearly free university education, stronger progressive taxation, higher minimum wages, and inclusion of trade unions in corporate decision-making.” There’s even a glimmer of hope that U.S. politicians could manage to put some of these ideas into action. Seriously, I’m trying hard not to be cynical.

Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both:

  • We could theoretically create a race of humans with Einstein-level intelligence using in-vitro fertilization techniques available today. They might use their intelligence to create even smarter artificial intelligence which would quickly render them (not to mention, any ordinary average intelligence humans) obsolete.



socialism, capitalism, and inequality

Leave a reply

This article on History News Network sums it up pretty well. Socialism doesn’t work well when it means an authoritarian government controlling all aspects of the economy in the name of “the people” (e.g., the Soviet Union). Capitalism works well for an elite few but does not work well for the majority when it allows private wealth to hijack the political process (e.g., the United States, especially in recent decades).

There is a formula that works pretty well. It’s almost boringly simple and yet seems depressingly out of reach for the U.S. as long as wealthy individuals and industries are able to buy elections and write the nation’s laws to continue stacking the deck in their favor, while using our free speech protections to wage an effective propaganda war so that the public actually supports this.

It’s a common mistake of both left and right to talk about capitalism and socialism as if there were only two choices. One-party socialist systems in less developed countries have not worked well over the past century. Capitalism as practiced in the United States and many other nations has mainly benefitted those who already are wealthy. The nations in which all citizens gain from economic growth have combined elements of market economies, private ownership, and political policies that mitigate inequality. In western Europe, public health care, nearly free university education, stronger progressive taxation, higher minimum wages, and inclusion of trade unions in corporate decision-making result in much lower inequality and much happier populations.

AI and socialism

Leave a reply

AI and algorithms are being used to target social services more precisely in Denmark. This article finds the level of data being collected on individuals insidious. I think it could be in the wrong hands, but this sort of thing seems to work in the Scandinavian countries where people actually trust their governments and neighbors. In the U.S., we tend to take paranoia to extremes, for example refusing to have a national ID card when it could solve some of our voter registration issues.

The municipality of Gladsaxe in Copenhagen, for example, has quietly been experimenting with a system that would use algorithms to identify children at risk of abuse, allowing authorities to target the flagged families for early intervention that could ultimately result in forced removals.

The children would be targeted based on specially designed algorithms tasked with crunching the information already gathered by the Danish government and linked to the personal identification number that is assigned to all Danes at birth. This information includes health records, employment information, and much more.

From the Danish government’s perspective, the child-welfare algorithm proposal is merely an extension of the systems it already has in place to detect social fraud and abuse. Benefits and entitlements covering millions of Danes have long been handled by a centralized agency (Udbetaling Danmark), and based on the vast amounts of personal data gathered and processed by this agency, algorithms create so-called puzzlement lists identifying suspicious patterns that may suggest fraud or abuse. These lists can then be acted on by the “control units” operated by many municipalities to investigate those suspected of receiving benefits to which they are not entitled. The data may include information on spouses and children, as well as information from financial institutions.

Giants: The Global Power Elite

Leave a reply

This is a new book from Project Censored (or at least that’s where I became aware of it). I’m not sure whether I agree with the politics 100%, but numbers are numbers and these are a bit shocking.

As the number of men with as much wealth as half the world fell from sixty-two to just eight between January 2016 and January 2017, according to Oxfam International, fewer than 200 super-connected asset managers at only 17 asset management firms—each with well over a trillion dollars in assets under management–now represent the financial core of the world’s transnational capitalist class. Members of the global power elite are the management–the facilitors–of world capitalism, the firewall protecting the capital investment, growth, and debt collection that keeps the status quo from changing. Each chapter in Giants identifies by name the members of this international club of multi-millionaires, their 17 global financial companies—and including NGOs such as the Group of Thirty and the Trilateral Commission—and their transnational military protectors, so the reader, for the first time anywhere, can identify who consitutes this network of influence, where the wealth is concentrated, how it suppresses social movements, and how it can be redistributed for maximum systemic change.

Norwegian immigration

Leave a reply

Snopes.com reminds us why Norwegians are not lining up to emigrate to the United States, and in fact there is a small net flow the other way.

Emigration from Norway to the U.S. hit its peak in 1882 when almost 29,000 mostly poor Norwegians crossed the Atlantic. In 2016, however, only 1,114 Norwegians moved to the U.S., while 1,603 Americans moved to Norway…

Oil-rich Norway ranks fourth in the world for GDP per person, according to the World Bank, compared with the U.S., which was eighth. Norway also boasts a universal health care system, low unemployment and $1 trillion “rainy day” fund fueled by its offshore oil and gas resources that helps pay for generous pensions and other social welfare programs.

Norwegians also have a life expectancy of 81.8 years on average, making them the 15th longest-living people in the world, according to the World Health Organization. The U.S. is in 31st place, with a life expectancy of 79.3 years.

My experience in Norway consists of two days in Oslo. It struck me as a fairly ethically diverse place actually. It seemed gloomy, but that might have been the weather. We could definitely study and learn from the way they bank their natural resource-derived wealth for the future, and from the way they blend a thriving capitalist economy with a robust social safety net. But we won’t, because…America.

universal basic income

Leave a reply

This post on BillMoyers.com runs some of the numbers on the idea of a universal basic income.

The UBI would be for those who truly needed it — those who could not endure traditional full-time employment, either because of age, illness, disability, caretaking or student status. As baby boomers grow old and need care, as students struggle to earn an education without becoming hideously indebted, and as parents yearn to stay home with infants and very young children, a UBI would truly revolutionize society.

Proposals vary, with costs depending on whether or not UBI would be paired with other social programs, like universal health care. Karl Widerquist, a Georgetown professor of political philosophy, estimated that at $6,000 per child and $12,000 per adult, the net cost of UBI would be $539 billion per year.

This number may sound astronomical, but to put it into perspective, Widerquist writes, a UBI would cost “less than 25 percent of the cost of current US entitlement spending, less than 15 percent of overall federal spending, and about 2.95 percent of Gross Domestic Product.”

Wealthy and powerful people don’t like ideas to share the wealth, of course. But they should recognize that if we get to a point where there is enough wealth to go around, but not enough jobs to go around, there has to be some way to share the wealth or else there will be no possibility of a stable society.

Venezuela

Leave a reply

Before I even talk about this Atlantic article on Venezuela, let me say that I don’t know enough about Venezuela to have much of an opinion on it or its politics. And the language in the article is not unbiased, but has an ideological bent. But here’s what it says:

What our country is going through is monstrously unique: It’s nothing less than the collapse of a large, wealthy, seemingly modern, seemingly democratic nation just a few hours’ flight from the United States.

In the last two years Venezuela has experienced the kind of implosion that hardly ever occurs in a middle-income country like it outside of war. Mortality rates are skyrocketing; one public service after another is collapsing; triple-digit inflation has left more than 70 percent of the population in poverty; an unmanageable crime wave keeps people locked indoors at night; shoppers have to stand in line for hours to buy food; babies die in large numbers for lack of simple, inexpensive medicines and equipment in hospitals, as do the elderly and those suffering from chronic illnesses.

Like I said this article is ideological, blaming the problems on “Chavez’s 21st-century socialism”:

A case in point is the price controls, which have expanded to apply to more and more goods: food and vital medicines, yes, but also car batteries, essential medical services, deodorant, diapers, and, of course, toilet paper. The ostensible goal was to check inflation and keep goods affordable for the poor, but anyone with a basic grasp of economics could have foreseen the consequences: When prices are set below production costs, sellers can’t afford to keep the shelves stocked. Official prices are low, but it’s a mirage: The products have disappeared.

When a state is in the process of collapse, dimensions of decay feed back on each other in an intractable cycle. Populist giveaways, for example, have fed the country’s ruinous flirtation with hyperinflation; the International Monetary Fund now projects that prices will rise by 720 percent this year and 2,200 percent in 2017. The government virtually gives away gasoline for free, even after having raised the price earlier this year. As a result of this and similar policies, the state is chronically short of funds, forced to print ever more money to finance its spending. Consumers, flush with cash and chasing a dwindling supply of goods, are caught in an inflationary spiral.

The Soviet Union taught us that there is such a thing as going too far with price controls, and such a thing as being overly reliant on oil revenues. Maybe leaders of this country missed some of those lessons of history and repeated some of those mistakes. But I also see another lesson here. The article talks about both the collapse in oil prices, which hit government revenues hard, and the severe drought caused by El Nino, which is causing both water shortages and electricity shortages because the country is dependent on hydropower. So whatever the decisions of political leaders, which I take no position on here, the country was clearly not ready for an external shock caused by environmental factors and changes in supply and demand of natural resources. It may be a microcosm for things to come on a larger scale elsewhere in the world.