Basic Income Guarantee - Criticisms

Criticisms

One critical view of Basic Income theorizes that it would have a negative effect on work incentive and labor supply. Even when the benefits are not permanent, the hours worked—by the recipients of the benefit—are observed to decline by 5%, a decrease of 2 hours in a typical 40 hour work week, in one study:

While experiments have been conducted in the United States and Canada, those participating knew that their benefits were not permanent and, consequently, they were not likely to change their behaviour as much or in the same manner had the GAI been ongoing. As a result, total hours worked fell by about five percent on average. The work reduction was largest for second earners in two-earner households and weakest for the main earner. Further, the negative work effect was higher the more generous the benefit level.

However, in studies of the Mincome experiment in rural Manitoba, the only two groups who worked less in a significant way were new mothers, and teenagers working to support their families. New mothers spent this time with their infant children, and working teenagers put significant additional time into their schooling. Under Mincome, "the reduction of work effort was modest: about one per cent for men, three per cent for wives, and five per cent for unmarried women."

Another study that contradicted such decline in work incentive was the Namibian pilot project implemented in 2008 and 2009 in the Omitara village; the assessment of the project after its conclusion found that economic activity actually increased, particularly through the launch of small businesses, and reinforcement of the local market by increasing households' buying power.

Read more about this topic:  Basic Income Guarantee

Other articles related to "criticisms, criticism":

Bjørn Lomborg - The Skeptical Environmentalist - Accusations of Scientific Dishonesty - MSTI Review
... for why the DCSD find that the complainants are right in their criticisms of working methods ... It is not sufficient that the criticisms of a researcher's working methods exist the DCSD must consider the criticisms and take a position on whether or ...
Epic Pooh - Summary - Criticisms
... Moorcock's essay has drawn criticism for its portrayal of the themes in The Lord of the Rings and Tolkien's other works ...
Calvary Chapel - Criticisms
... Various criticisms of the organization and of the pastorate role in the organization exist ... For example, journalist David Templeton described intense peer pressure during his time as an active participant in Calvary Chapel ministry ...
The Psychology of Criticism - Area of Study
... The psychology of criticism is primarily concerned with the motivation, purpose or intent which people have for making criticisms - healthy or unhealthy ... the meaning of criticism for the self, and for others - positive or negative ... the effect which criticism has on other people - good or bad ...
Encyclopedia Of World Problems And Human Potential - Reviews and Criticisms
... One of the harshest criticisms came from the American Library Association in 1987 "The board considers the Encyclopedia of World Problems and Human Potential a problematic monument to idiosyncrasy ...

Famous quotes containing the word criticisms:

    I have no concern with any economic criticisms of the communist system; I cannot enquire into whether the abolition of private property is expedient or advantageous. But I am able to recognize that the psychological premises on which the system is based are an untenable illusion. In abolishing private property we deprive the human love of aggression of one of its instruments ... but we have in no way altered the differences in power and influence which are misused by aggressiveness.
    Sigmund Freud (1856–1939)

    The sway of alcohol over mankind is unquestionably due to its power to stimulate the mystical faculties of human nature, usually crushed to earth by the cold facts and dry criticisms of the sober hour. Sobriety diminishes, discriminates, and says no; drunkenness expands, unites, and says yes.
    William James (1842–1910)