Originally Posted by Capt'n Midnight
Someone on minimum wage has to pay PRSI and USC (and employers PRSI) on every cent of their income.
OK, but you're focusing on (a) Ireland and (b) the way things are today. My post to suggest that (a) this is a global
issue and (b) the whole structure of economies would have to change for UBI to work successfully. Think big!
For example, how much money is used just to make more money? The stock market was originally invented as a way for companies to raise money so that they could invest and expand, providing jobs and stimulating the economy in the process. Those days are long gone, and now money is used by rentiers (rent-seekers
) to lock up scarce resources and basically make money by controlling access to them.
The property market is a great example: only a fraction of the cost of a house now goes to the builders, the rest goes to the owner of land which is only expensive because someone wants it that much. That excess money goes straight in to the landowner's pocket: it hasn't employed anyone or paid for any goods or services, it's been removed from the economy. Some of it might, but the rest ... back in to property, which gets more and more expensive. Some property gets rented out at a premium - pulling in more money than went in to the building.
The point is that if people just sit on wealth, or invest it in things that don't employ people or perform some other productive activity, it skews the whole economy, leaving the non-wealthy chasing fewer economic resources. To properly fund UBI, therefore, would mean reducing or eliminating the rentier class and requiring people with money to use it productively, not as a tool for just making more money.
It's a big ask, I know. Warren Buffet gets it, but your typical small landlord, sitting on a "property portfolio" that just brings in money from other people's pockets, might not ...