Very good comment. I am in favor of some of universal or conditional basic income, because the issue of ‘relative deprivation’ is very real.
the most extreme example is someone who gets rich by winning a lottery (in my area alot of people play the lottery, because they want to get rich quick and also tend to have low paying and unpleasant jobs—they spend alot of their low incomes on the lottery—which spposedly is used by the govt to pay for public education).
If someone wins the lottery, supposedly everyone is better off, because the winners will buy more stuff in the area (multiplier effect) and so on—and will be much happier themselves because don’t have to worry about money. They can even quit an unpleasant job and pay for their kids’ private school or college tuition. .
But then everyone they know will show up and ask for some money , and they are quickly miserable, and sometimes go broke—some spend most of their money on luxuries which they think will make them happier.
Also often the ‘multiplier effect’ doesn’t really benefit or help much the people who also get money indirectly from the lottery. They just get a bit more than their own neighbors , who proceed to ask them for money. Cash transfers have to take into account the whole community.
Very good comment. I am in favor of some of universal or conditional basic income, because the issue of ‘relative deprivation’ is very real.
the most extreme example is someone who gets rich by winning a lottery (in my area alot of people play the lottery, because they want to get rich quick and also tend to have low paying and unpleasant jobs—they spend alot of their low incomes on the lottery—which spposedly is used by the govt to pay for public education).
If someone wins the lottery, supposedly everyone is better off, because the winners will buy more stuff in the area (multiplier effect) and so on—and will be much happier themselves because don’t have to worry about money. They can even quit an unpleasant job and pay for their kids’ private school or college tuition. .
But then everyone they know will show up and ask for some money , and they are quickly miserable, and sometimes go broke—some spend most of their money on luxuries which they think will make them happier.
Also often the ‘multiplier effect’ doesn’t really benefit or help much the people who also get money indirectly from the lottery. They just get a bit more than their own neighbors , who proceed to ask them for money. Cash transfers have to take into account the whole community.