UBI: Ed Dolan Responds Bryan Caplan By Bryan Caplan, Feb 8 2017 SHARE POST: Ed Dolan responds to me on the UBI in the comments. Complete text: First of all, thank you, Bryan, for the civil, cogent, and detailed response. I think we might even find common ground–I might eventually be able to get you to concede that libertarian sympathizers should “take a UBI seriously” (that is not the same as drinking the UBI Kool-aid, after all) and in return I will concede that a UBI is not a magic bullet, but nonetheless is worth serious consideration. A couple of specifics: 1. You say that I acknowledge elsewhere that the incentives are theoretically ambiguous,income effect vs.substitution effect and all that. Fine, but you give the wrong link. The place where I discuss that issue in detail is in the two-part series that starts here. Part 1 of that post deals with theory, and shows that although there is some ambiguity, it requires very special and implausible assumptions for the income effect to outweigh the substition effect. Part 2 looks at the empirical literature, and concludes that the overwhelming weight of evidence suggests that a UBI improves work incentives relative to any means tested program. 2. You are very right to zero in on the “done properly” proviso as critical. I completely agree that tacking a UBI onto the existing system would not work. I also strenuously object to the line you get from some conservatives that a UBI should replace welfare for the poor, but leave all tax and transfer goodies intact for the rent-seeking middle and upper classes. What is sauce for the goose is sauce for the gander. Does that make a UBI a hard sell politically? Maybe. I’m a lowly economist. As the song says, “If the rocket goes up/who cares where it comes down?/That’s not my department/says Werner von Braun.” 3. Taxpayers have right to attach conditions to public charity. I don’t dispute that. Whether pragmatic considerations might lead them to avoid excessive or silly conditions is another matter. 4. “You shouldn’t get aid unless you are poor through absolutely no fault of your own.” Yes, that argument has some moral force. However, pragmatically, it is hard to pull off since it requires a huge welfare bureaucracy to decide who qualifies, and the very effort to decide has a Heisenberger-like way of changing the nature of the phenomenon you are trying to evaluate. Exhibit A is our disability system, which tries to follow the principle you suggest, but ends up with massive unintended consequences (UBI vs. disability is subject of a forthcoming post.) Thanks again, anyway. I’d love to have a live debate on this.
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Feb 8 2017 Economic and Political Philosophy UBI: Ed Dolan Responds Bryan Caplan Ed Dolan responds to me on the UBI in the comments. Complete text: First of all, thank you, Bryan, for the civil, cogent, and detailed response. I think we might even find common ground--I might eventually be able to get you to concede that libertarian sympathize... 9 Read More