The economic incentive doesn't just vanish because people have a little more money. Notwithstanding, a lot of people enjoy the work of being a mechanic.
> The economic incentive doesn't just vanish because people have a little more money.
The incentives are changed dramatically, though. The unworkability of the plan comes down to a very simple question: Why work for forty years, scrimping and saving to afford a meagre retirement, when a meagre retirement is on offer the moment you turn 18?
People have the option now to live like the meagre retirement of this proposed UBI while working, saving a ton more, and retire with a lot more than this UBI in far fewer years than 40. Instead, they spend more, because people always want more stuff. A meager retirement is not appealing to most 18 year olds.
Or with this proposed UBI, why wouldn't people work 20 years and have a good retirement instead of the a meager one out of the gate? Why not work 40 for a great one?
The median 65 year old has 200k in retirement savings. That's 8k per year at a 4% safe withdrawal rate. Hardly worth 40 years of work.
> A meager retirement is not appealing to most 18 year olds.
The option of shacking up with some buds and playing videophones all day will be utterly irresistible for many (if not most) male high school grads. Basically the college experience, for free, forever.
Well, we're apparently significantly more wealthy as a society and individuals than XXX years ago. Yet, most people still seem to be working and the economy is stronger than ever (On a multi-century scale).
