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I understand from Milton Friedman that if there was no basic income, unemployment should approach zero. What is the catch?


The catch is we already have several terrible systems of poorly and expensively providing basic income: abuse of SSDI and using food-stamps to buy goods to use as a de-facto currency (in West Virginia, it happens to be soda bottles, for example)


I think you mean "no minimum wage", not "no basic income". Friedman was especially supportive of a basic income (negative income tax to be precise).


Yeah, that makes a lot of sense actually: basic income + no minimum wage (or if politically impossible, not raising minimum wage) -- since the basic income will continue even if someone is employed, it's a great incentive to stay to in the labour force and advance even if the pay is minimal.

I do think that Milton Friedman may not have foreseen the way automation might lead to at least long-term (but perhaps not permanent) structural unemployment.


Yes, bad english. Sorry.





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