I. Speech Organization
Since many of the issues being debated overlap and intersect, I have opted to combine my defense of my own case with my rebuttal to my opponent's case. The line-by-line order might, therefore, not match perfectly, but there should be plenty of sign-posting to help my opponent and voters navigate this speech.
II. UBI Examples/Studies
A. Alaska
Firstly, the Alaska Permanent Fund does not meet the definition of a UBI, insofar as disbursements between $1,100 and $4,400 do not constitute "payments...sufficient to meet the socio-cultural subsistence minimum of the community." That money would not even pay for an apartment, let alone cover all entire subsistence minimum. Assuming 1 working adult (renting), the average cost of living in Alaska is approximately $20,000. [1] The Fund's disbursements would need to be increased by 20x (also 20x the expense) in order to meet the most basic definition of a UBI. To get a rough idea of the gross cost of a true UBI in Alaska, multiply $20,000 x 740,000 (the population) and get $14,800,000,000.
Secondly, the Alaska Permanent Fund is not sustainable. Last year, the fund grew by about $5 billion. [2] Assuming that yearly earnings remain the same (which is unlikely, as earnings have typically been less than $5 billion) and that Alaska's population remains the same (also unlikely, as the population there is increasing), the fund, if it paid out a full UBI, would run out of money in five years. Since the fund is not supported by taxes, its gross cost and net cost are essentially identical.
Thirdly, Alaska is atypical. It has a large amount of oil revenue which it can tap into to support the UBI program. [3] This is not true of all states, and it is certainly not true of the debt-laden US government.
Fourthly, "proposals based on Alaska’s Permanent Fund Dividend,assume the continued exploitation of carbon resources. This is problematic for a couple of reasons. Either the environmentalists’ goals will be realized --and when we phase out our carbon dependence, our funding for basic income will dry up --or we will all burn." [4]
Fifthly, Alaska is a single, cherry-picked example which cannot possibly affirm UBI as a general principle. In fact, there is a wide dearth of high-quality (that is universal, randomized, long term and basic) examples of and experiments on UBI, meaning that defaulting to theoretical analyses is almost unavoidable [5].
B. Roosevelt Institute
Pro cites a study by the Roosevelt Institute to back up his assertions about the economic panacea that he would have us believe UBI to be. This study finds "that enacting any of these policies by growing the federal debt--that is, without raising taxes to pay for it--would substantially grow the economy. The effect fades away within eight years." [6] This has several important implications. Firstly, if taxes aren't being raised to pay for it, the gross and net costs are the same, mooting one of Pro's arguments against my math. Secondly, neither of Pro's pieces of evidence in favor of UBI (Alaska and this RI study) use tax money to fund UBI. That means that Pro has no evidence that shows that he can have good economic consequences from UBI while paying for UBI with taxes. So, either Pro admits he has no evidence that tax-supported UBI is good or he admits that he would balloon the national debt. This is a double-bind on Pro. Thirdly, the beneficial effects of UBI are merely temporary.
III. Workforce Participation
At the most basic level, Pro's position seems contradictory. On the one hand, he is saying that an NIT (which is highly similar to UBI) would reduce workforce participation while on the other he is saying that a UBI would not have that effect. Given that these policies are in the same family of welfare reform proposals, so to speak, it seems hard to fathom how they could result in such diametrically opposite outcomes. Pro even says, "a UBI and NIT are pretty much the exact same thing."
Pro's logic, it seems, is that because more work will not increase one's NIT benefit, people have an incentive not to work more. Okay, but that's not the same as saying they have an incentive to work less. An NIT which starts at $5,000 for someone with zero income [11] is still going to require you to work to make a subsistence-level income. UBI, on the other hand, does clearly incentivize people to work less, insofar as one can be unemployed while still drawing a subsistence-level salary. Why go to work when I can make just as much money watching Game of Thrones at home? Pro essentially admits that for some people, a UBI will disincentivize working; for example, Pro writes that a UBI will "help new mothers by enabling them to work less."
If anything, a UBI is likely to have a more dramatic effect on labor supply than an NIT insofar as its benefits extend to more recipients, thereby incentivizing more people to reduce the amount they work or to stop working altogether.
Looking to empirics, we do see that UBI has a depressing effect on workforce participation. "Single parents in the UK offer a test case, as up to 2008 they were effectively in receipt of something very like an UBI, when not in employment. They had no obligation to actively seek work...By 2014 the employment rate outside London had risen from 57% to 61%. In London the increase was dramatic from a lower baseline: from 45% to 57%." [7]
An NIT, however, would not have this same negative effect. "[A]n economist at the University of
Pennsylvania, recently reviewed evidence on the 1970s
NIT experiments as part of a larger project on unconditional
cash transfers. She found that 'the labor supply
effects are uniformly small to nonexistent, depending on
the study.'" [8] An analysis considering three models of labor supply found that, "in all three, an NIT might raise a given family member's labor supply and might also raise total family labor supply. In one model, an NIT could even raise total family earnings. These models and recent empirical estimates...suggest that the work disincentive effects...of an NIT may be less than has previously been thought." [9] So, there is a real possibility that an NIT could boost workforce participation.
And for those who do reduce working hours under NIT, studies have found that those reductions were for productive ends, and not just to get more time to binge watch Jon Snow hacking wights to pieces. “In 1968, President Richard Nixon initiated a successful trial showing that the money had little impact on the recipients’ working hours. People who did reduce the time they worked engaged in other socially valuable pursuits, and young people who were not working spent more time getting an education.” [10]
IV. Economic Opportunity
A. Income Inequality
Because UBI benefits are distributed evenly among the classes, UBI will be less effective at reducing income inequality than the NIT. The NIT concentrates its benefits in the hands of the most in-need, and may be coupled with a progressive tax policy to further augment its ability to reduce income inequality. Even with progressive taxation, because UBI does not focus its payouts withing a specific income bracket, it cannot have the same income inequality-reducing outcomes as NIT. Note that Pro describes income inequality as "a serious problem."
B. Poverty
My evidence shows that UBI is less effective at reducing poverty than an NIT. I should not have said that a UBI increases poverty--that claim perhaps exceeded the breadth of its supporting evidence. The fact that UBI does not increase poverty notwithstanding, it is clear from my evidence that UBI is less effective at reducing poverty than NIT. This is because NIT, unlike UBI, concentrates its disbursements in the hands of those who need it most--the poor. UBI, however, disburses money to the Donald Trumps of the world as well as to the homeless men on the street. By failing to focus its resources at those most in need, UBI is less capable of addressing the crisis of poverty than NIT.
My evidence clearly does support this more tailored claim (that being that NIT is better than UBI at reducing poverty). As I wrote earlier, "suppose $100 were set aside for government aid in a country with $100 people, of whom, 10 were poor. A policy of UBI would give all 100 people $1 each, distributing evenly the benefits of the policy. The problem with an even distribution of this sort is that not everyone has equal need for the benefits of the policy. Instead, it would seem more effective to give the 10 people in poverty $10 each, as they are the most in-need." This logic is also backed up by a study from the OECD, so I also have empirics on my side. [12]
V. Cost of UBI
Pro's critique of my cost analysis only applies if he is using taxes to fund the program. But since none of his evidence shows that a tax-supported UBI would be beneficial, if Pro is advocating for a tax-supported UBI, his case doesn't support his advocacy. This is an issue I brought up earlier in this round.
Setting that issue aside for a moment, let's delve into the implications of Pro's taxation argument (or, the taking three dollars in return for two). Pro is, with this argument, basically saying that the wealthy should pay for a UBI for everyone.
Before tax support, UBI costs 3-4 trillion dollars (Pro's source says $4.15 trillion [13]), equivalent to or exceeding the federal government's entire annual tax revenue. To pay for UBI, the government would need to increase it's tax revenue substantially, perhaps, per my earlier analysis, by as much as half. To do this, as I said last round, the government would need to tax individuals at rates of 35 to 40 percent. Pro himself suggests using a marginal tax rate of 35%, and that was "lower" than the tax rate for the UBI that cost only $539 billion. This means that UBI would cost a taxpayer more in taxes than that taxpayer would receive in benefits, rendering the policy net-harmful to the taxpayers. Even if the brunt of that tax burden were concentrated in the upper economic tiers, it is not reasonable (from either an economic or realpolitik perspective) to believe that the lower tiers would not also incur some of the costs, mitigating whatever benefits they might've reaped from a UBI absent the increased taxes. This is also why UBI not supported by taxes is not comparable to UBI supported by taxes.
An NIT, because it costs so much less, would not require the same kinds of tax hikes that UBI would, and so the NIT is not only more affordable, but more beneficial to its recipients, who are the most needy among us. Notice that Pro never challenges my cost assessments for NIT; extend those cost assessments as unrebutted.
VI. Miscellaneous
Pro concludes last round by making a plea to moral sentiment, but a consequentialist evaluative mechanism has already been established for the round. The only arguments that can determine the moral rightness of either policy are those which can be weighed under such a framework.
NIT can also help struggling mothers, and I don't support getting rid of childcare programs which can offer additional financial support to parents.
Regarding Pro's sources, the Roosevelt Institute is a left-leaning think-tank [6] and Basic Income's whole agenda is promoting UBI. Of course these sources are going to paint UBI in a wonderful light. These sources should be regarded with some skepticism.
VII. Sources
11 - Con R2, Source 9
12 - Con R2, Source 7
13 - Pro R2, Source 1
Just a reminder that you've got about half a day to post.
I'm sick right now, I'll start flowing this the moment I get better.
I'm experimenting with the idea of me flowing DDO/DArt rounds I judge rather than just reading. So I'll do that, and try my best to cast a ballot. If the debaters are fine with that, of course.
My argument has been posted.
Posted round 2!
Posted
Brief note: the last quote was from this source
https://slate.com/human-interest/2018/01/the-feminist-case-for-universal-basic-income.html
I can’t believe I forgot to put it in the sources. Oh well.
Thanks. I should have my arguments up later tonight or tomorrow
Ball's in your court.
I will be following this closely.
Thanks!
I'll waive late on Saturday or early on Sunday.
Accepted. Can you wait till Sunday to waive the first round?
Nope. Feel free.
Mind if I take this debate?