When payment is conditional on work or narrowly targeted, basic income will increase workers’ market dependence and facilitate exploitation, but when it is generous, broadly available, and crucially, delinked from work, it will obstruct exploitation.”
Safety net programs can have impacts in the long-term (on employment, earnings, and mortality) that don't show up in current government practices of limiting time horizons for cost-benefit policy analysis to the short-term.
A tax-funded, $1k/month UBI is modeled to increase nominal wages by 0.51% over baseline after 8 years.
Universal welfare programs do not act as employer subsidies, while programs conditional on work might, though not overwhelmingly so.
If McDonald's redirected all 2015 - 2017 funds used on stock buybacks to raises for its employees, it could have given each of its 1.9 million workers nearly $4,000 more per year.
If Starbucks reallocated its funding from stock buybacks to worker wages, every worker would receive a $7,000 raise.
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CEO compensation has grown 940% since 1978
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Ola L. Vestad
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