Depends. If every euro you earn there adds to your unconditional minimum income, instead of replacing a euro from welfare, the motivation to work for that new car, or whatever, becomes pretty tangible.
Note that €900 (or €1300 for a family) is pretty barebones. You won't be putting much more than bread and potatoes on the table using that. And you'll probably live in a rather small house too.
Yeah but at the same time, it would allow people to be more picky about where they work. "I need money so I'll take any job" is a different mindset than "I am financially independent and I'm looking to make more monies in a job I like"
The I'll-take-any-job crowd might not be very motivated in their work anyway. At worst this will force us to pay better salaries for ALL jobs that have fewer applicants, instead of only the ones that require a higher education or lots of experience. Seems fair to me.
Income has a diminishing return, once you're out of "minimum income" the ammount requred to take the shit job is not linear.
You can either lowball the minimum income to the point where you can't realistically live on it for long or a lot of services get more expensive + tax hike to support it = lower standard of living for normal people (unaffected by minimum income but not rich enouh to ignore the costs)
The idea of basic income is to take people out of starvation and lack of shelter. It would still leave people wanting to earn in order to e.g. go on holiday, own a computer, go to a bar, go to a restaurant, eat nice food, own a car (in Europe where owning a car is not required at least) etc - i.e. still plenty of incentive to work, earn and save just more freedom to take risks by e.g. starting that business...
You also miss a basic premise of basic income - everyone gets it with no means testing. It is a different concept to current benefit systems. Normal people would receive it as much as unemployed people.
I doubt people are starving in developed countries so I wouldnt say it's taking anyone out of starvation, it's an alternative to existing welfare in that regard.
And when we get to "basic shelter" well coupled with free health care I guarantee you there are people out there who have very little ambition beyond that, I know more than a few from highschool that literally said things like "all i need is enough money to play WoW" or just work enough to earn money for weed and go out with their friends and live with their parents (and these are people in late 20s early 30s).
People with ambition aren't the ones that benefit from minimum income (unless they get really unlucky, which I guess is a valid concern, but then again those same people are not the ones doing the bottom tier jobs, at least not for long).
Also that's not how I saw basic income schemes suggested, usually it's paid out to people below min income and then progressively lowered to some point otherwise the taxes would have to be insane to finance it.
>I doubt people are starving in developed countries so I wouldnt say it's taking anyone out of starvation
Grew up with friends who had no food sometimes. My mom would give me food to bring to their house when I went to visit. The mother also had very serious medical problems which was a big reason for that.
You didn't have social services/food charities/local church/neighbors etc. ?
There is a difference between not having food sometimes and starving. Minimum income doesn't fix that either - there will be people who will spend their kids food money on other things.
> Also that's not how I saw basic income schemes suggested, usually it's paid out to people below min income and then progressively lowered to some point
NO basic income is a flat amount paid to everyone regardless of their income.
What you are talking about is called means tested in work benefits in my country. It is bad - for all the reasons you mentioned but it is not basic income.
Criticise basic income if you want (please do so if you are trained economist) but please do understand what it is before doing so otherwise you are merely burning a strawman.
>Negative income taxes can implement a basic income or supplement a guaranteed minimum income system.
IIRC it was proposed as a simplification of the means tested welfare. Basically NIT is the most realistic funding for Basic Income I've seen - but it's irrelevant - the incentives stay the same the only difference is that it screws over regular people a little less (depending on how it's funded, I'm unconvinced by any "tax the rich" scheme).
Anyway I was interested in this stuff in college when I took my intro econ classes I never looked in to it further but I'm 100% sure NIT is a basic income scheme.
Basic income (NB not minimum income!, not negative income tax!) is not means tested at all. No means test period. Everyone gets it. From the beggar to the millionaire. This is a totally different concept to means tested benefits. The proposal is a so called universal benefit.
Note that €900 (or €1300 for a family) is pretty barebones. You won't be putting much more than bread and potatoes on the table using that. And you'll probably live in a rather small house too.