by Preposterous Initiative BALTIMORE – No whining and kvetching about the Deep State today. Instead, we sit at its feet, admire the cut of its jaw, and sing its praises. We are grateful to it… and not just as a source of amusement. In short, we delight in its incompetence. What brings this to mind is a small item in the news, which, like a pool ball careening across a felted table, knocked two or three others in their pockets before coming to rest. We had to go pluck each one out of its hole and examine it. And what a marvelous fraud each one is! Democracy! Central banking! Welfare statism! We think of the Swiss as prudent, careful people. They have their feet on the ground and their heads screwed on straight. But they have undertaken a pathetic and preposterous initiative, one so hopelessly ill-conceived, it is worthy of American economists… or French intellectuals. Excavation of the “Giant of Cardiff” – but there are even more giant, more amusing and more far-reaching frauds on offer these days… Photo via paranormicstv.com Specifically, next week the Swiss will vote on a proposal to give a “basic income” to all Swiss residents, whether they work or not: a guaranteed annual income of ,000.
Topics:
Bill Bonner considers the following as important: Debt and the Fallacies of Paper Money, Featured, newsletter, On Politics
This could be interesting, too:
Nachrichten Ticker - www.finanzen.ch writes Krypto-Ausblick 2025: Stehen Bitcoin, Ethereum & Co. vor einem Boom oder Einbruch?
Connor O'Keeffe writes The Establishment’s “Principles” Are Fake
Per Bylund writes Bitcoiners’ Guide to Austrian Economics
Ron Paul writes What Are We Doing in Syria?
Preposterous InitiativeBALTIMORE – No whining and kvetching about the Deep State today. Instead, we sit at its feet, admire the cut of its jaw, and sing its praises. We are grateful to it… and not just as a source of amusement. In short, we delight in its incompetence. What brings this to mind is a small item in the news, which, like a pool ball careening across a felted table, knocked two or three others in their pockets before coming to rest. We had to go pluck each one out of its hole and examine it. And what a marvelous fraud each one is! Democracy! Central banking! Welfare statism! We think of the Swiss as prudent, careful people. They have their feet on the ground and their heads screwed on straight. But they have undertaken a pathetic and preposterous initiative, one so hopelessly ill-conceived, it is worthy of American economists… or French intellectuals. |
Excavation of the “Giant of Cardiff” – but there are even more giant, more amusing and more far-reaching frauds on offer these days… Photo via paranormicstv.com |
| Specifically, next week the Swiss will vote on a proposal to give a “basic income” to all Swiss residents, whether they work or not: a guaranteed annual income of $30,000. You may have the same reaction we did: This is crazy!
If you can earn $30,000 a year without working, it will be hard for anyone earning less than $60,000 (about the same as $30,000 after taxes in many places) to get up in the morning and put on his overalls. Why bother? The waiters will abandon us at our tables, our glasses unfilled and our dirty dishes still in front of us. The valet parkers will drive off in their own new cars. The burger flippers will leave their hot patties in midair as they head home. All the low-paying jobs, and more than a few middle-income posts, too, will be vacated. |
|
New War on PovertyBut this proposal taps into several faddish worries and is finding many supporters. First, there are the zombies. Ever eager to get something for nothing, they see more something here to get. ‘Nuff said. Second, the “good government conservatives” imagine that government can function more rationally and more efficiently. They see the feds flailing around with their welfare programs. They figure this will be a simpler, more effective way to deliver something for nothing to the undeserving multitudes. If you’re going to spend trillions fighting a war on poverty, they believe, you might as well win it. Third, the elites of all faiths and persuasions are eager for any pretext to give money to the zombies in exchange for their votes. It’s a way for them to manipulate the masses, gain control of the police power of the state, and use it for their own aims. Fourth, those whose hearts bleed over “inequality” imagine that they can get the feds to staunch the wound. But they’ve missed the point. The insiders who control the Deep State don’t want to eliminate inequality; they want to add to it. They use government to get more money, power, and status. And they can only get these things by taking them away from their rightful owners. Fifth, there are those who are concerned about robots! What? Yes, there is growing concern that robots will take over the world’s work. For example, there are 3.5 million truck drivers in the U.S. Many or most of those jobs may soon be history, thanks to self-driving trucks (which are already operational). |
 A street in Lambeth, London in 1865 – back when there actually was genuine poverty in the “developed world”. And even this was already a huge step up from the situation before the industrial revolution, when people would be stuck in the countryside with less and less to eat. |
| So, too, will millions of other jobs now held by human beings. Lawyers, accountants, actuaries, architects, physical trainers – any career that involves routine procedures is vulnerable to disruption by the new generation of smart “bots.”
Robots are getting better and cheaper; by comparison, humans are becoming dumber and more expensive. Some people believe robots will gradually replace all but the most creative, most entrepreneurial, and best educated workers. Here Come the Robots!We’ve reported that the wages of 9 out of 10 U.S. workers are no higher today than they were 40 years ago after you adjust for inflation. It could get a lot worse: 9 out of 10 workers could be permanently out of work. Here’s journalist James Neilson writing in the Buenos Aires Herald: |
The latest Luddite obsession: robots will come and take our jobs! Photo credit: Corbis |
The Ideal Poor
|
|
Bread and Circuses (panem et circenses)More recently, American economist Milton Friedman proposed a negative income tax (NIT). He was trying to make the welfare system more efficient. The Nixon and Carter administrations proposed a guaranteed income program in the 1960s and 1970s, with the aim of making the system fairer, as well as more effective. And the Green Party included a NIT proposal in its 2010 platform, for God knows what reason. What’s wrong with these proposals? What’s wrong with the state the Welfare State is in? Stay tuned… |
Chariot race in the Circus Maximus. As Juvenal said: “Iam pridem, ex quo suffragia nulli uendimus, effudit curas; nam qui dabat olim imperium, fasces, legiones, omnia, nunc se continet atque duas tantum res anxius optat, panem et circenses.” – “Already long ago, from when we sold our vote to no-one, the people have abdicated their duties; for the people who once upon a time bestowed military command, high civil office, legions, everything, now restrain themselves and anxiously hope for just two things: bread and circuses.” |
Image captions by PT
The above article originally appeared as “The Welfare State is Doomed“ at the Diary of a Rogue Economist, written for Bonner & Partners.
Previous post