'A Game Changer': Andrew Yang Explains How He'd Give Every American $1,000 Per Month

[Sherman A1]

When you hear a big idea from a presidential candidate, do you ever want to ask: How would that work?

Two undecided voters John Zeitler, a 48-year-old attorney for an insurance company, and Hetel Jani, 38, who runs a nonprofit focused on education and mentorship, wanted to know more about the so-called "freedom dividend" from first-time presidential candidate Andrew Yang.

The voters, along with Morning Edition host Noel King, sat down with Yang at a midtown Manhattan a dumpling shop called Baodega – part of Off Script, a series of interviews with 2020 presidential candidates. Listen to the group's conversation about the freedom dividend by clicking the audio button above. Watch the full conversation here.

Yang, a tech entrepreneur and author, proposes that the government give every American adult $1,000 a month — a form of universal basic income, no strings attached. He says this income is necessary in order to address wide-scale job losses due to automation. It would help people have the resources to afford to look for work, care for a loved one, start a business or do nonprofit work.

https://www.npr.org/2019/10/23/770962701/a-game-changer-andrew-yang-explains-how-he-d-give-every-american-1-000-per-month

[redqueen]

1. Didn't see this in here before, thanks for posting it!

K&R

[crazytown]

2. It took me a long time to come around to this

but Andrew Yang is right, and a consumption tax is the proper way to pay for it. Kudos Sherman A1.

[Polybius]

3. $1,000 a month for all Americans is $327 billion a month

Or, $3.924 trillion per year. No tax is paying for that. Unless he means those making under a certain amount per month only. And does he mean forever, as in every month while he's Prez?

[redqueen]

4. He means forever, as in forever.

The oil dividend in Alaska is extremely popular. Some have tried to touch it, but as you might expect, that idea never gets very far.

That's why he proposes helping literally everyone with it. When everyone is benefitting from something, it's a lot harder for people to come after it as a target for cuts.

There's been a lot of number crunching and the plan to pay for it is with the VAT, a tax on financial transactions, capital gains and carried interest, and also it factors in expected reductions in expenditures on things like incarceration (you don't get UBI while you're in jail)
and reduced SNAP benefits or SSI (cash benefits, not retirement or disability, those both stack with UBI) from people leaving those programs and opting instead for UBI.

Not sure if you've ever been on food stamps but yeah, most would rather just have cash. Some argue that we can't trust that people won't waste it but it's really not difficult to trade your food stamp benefits for cash.

[Sherman A1]

5. HUMAN-CENTERED CAPITALISM

Capitalism as an economic system has led to unparalleled innovation and improvement in the human condition. Many consider it to have “won” the war of ideas against socialism, but that simplistic view ignores that there is no such thing as a pure Capitalist system. And our current version of institutional capitalism and corporatism is a relatively recent development.

Our current emphasis on corporate profits isn’t working for the vast majority of Americans. This will only be made worse by the development of automation technology and AI.

We need to move to a new form of capitalism – Human Capitalism – that’s geared towards maximizing human well-being and fulfillment. The central tenets of Human Capitalism are:

Humans are more important than money
The unit of a Human Capitalism economy is each person, not each dollar
Markets exist to serve our common goals and values

The focus of our economy should be to maximize human welfare. Sometimes this aligns with a purely capitalist approach, where different entities compete for the best ideas. But there are plenty of times when a capitalist system leads to suboptimal outcomes. Think of an airline refusing to honor your ticket because they can get more money from a customer who purchases last-minute, or a pharmaceutical company charging extortionate rates for a life-saving drug because the customers are desperate.

https://www.yang2020.com/policies/human-capitalism/

[Sherman A1]

6. THE FREEDOM DIVIDEND

Andrew would implement the Freedom Dividend, a universal basic income of $1,000/month, $12,000 a year, for every American adult over the age of 18. This is independent of one’s work status or any other factor. This would enable all Americans to pay their bills, educate themselves, start businesses, be more creative, stay healthy, relocate for work, spend time with their children, take care of loved ones, and have a real stake in the future.

Other than regular increases to keep up the cost of living, any change to the Freedom Dividend would require a constitutional amendment.

It will be illegal to lend or borrow against one’s Dividend.

A Universal Basic Income at this level would permanently grow the economy by 12.56 to 13.10 percent—or about $2.5 trillion by 2025—and it would increase the labor force by 4.5 to 4.7 million people. Putting money into people’s hands and keeping it there would be a perpetual boost and support to job growth and the economy.

PROBLEMS TO BE SOLVED

Approx. 40 million Americans live below the poverty line.

Technology is quickly displacing a large number of workers, and the pace will only increase as automation and other forms of artificial intelligence become more advanced. ⅓ of American workers will lose their jobs to automation by 2030 according to McKinsey. This has the potential to destabilize our economy and society if unaddressed.

Good jobs are becoming more and more scarce and Americans are already working harder and harder for less and less.

It is necessary to support and preserve a robust consumer economy.

Many Americans are stuck in the wrong jobs because of a need to survive.

There are many positive social activities that are currently impossible for many to do because they lack the financial resources to dedicate time to it, including taking care of a child or sick loved one, and volunteering in the community.

The most direct and concrete way for the government to improve your life is to send you a check for $1,000 every month and let you spend it in whatever manner will benefit you the most. The government is not capable of a lot of things, but it is capable of sending large numbers of checks to large numbers of people promptly and reliably. We have plenty of resources, they’re just not being distributed to enough people right now. Let’s build a new kind of economy – one that puts people first. If there’s one policy that would transform American lives for the better, it is Universal Basic Income.

https://www.yang2020.com/policies/the-freedom-dividend/

[SKKY]

8. It's actually a bit less than that because it only starts after the 18th...

...birthday. But, still a big chunk of change.

[Sherman A1]

9. It is as you say "A big chunk of change"

but I would rather that big chunk of change come to each of us rather than as it has been, funneled to the 1%. Imagine how it would drive the economy if each of us were in position to spend an additional $1K each month. There would be hiccups most certainly as no plan or system is perfect, but the benefits far outweigh the negatives from my point of view.

[SKKY]

10. For sure, and let me clarify, I'm a big proponent of a UBI...

...I just don’t know how we would pay for it, how much it should be ($1,000 seems random and arbitrary to me), at what age it should start, etc. But, make no bones about it, we will need a UBI in the not-too-distant future. When the 9 million plus people who make their living driving a vehicle of some sort are replaced by an autonomous vehicle, that will probably push things over the edge.

[MineralMan]

14. When do you think all those autonomous vehicles are

going to hit the road, then?

I think we're a long way from that, still. Now that most new cars have emergency braking to prevent collisions, we're hearing the stories of them kicking in when there's no reason, thus causing accidents, themselves.

I just bought a 2020 KIA Soul. I was considering the second trim level up from the base trim, until I saw that the primary difference between the two was a set of "safety features" that included lane keeping assist, front end collision auto braking, "smart" cruise control, and a couple of others. The difference in price was only $1000, and the upgrade would also have gotten me some nice alloy wheels.

I bought the cheaper trim, specifically to not have those automated safety features, or "nannies" as many call them. I read user reports of the lane keeping assist trying to steer the car on rainy days, or when lane markers were otherwise obscured. The "smart cruise control," too, was reacting to slower vehicles in other lanes sometimes, and slowing the car down with no reason. The front end collision avoidance automation was reported to have stopped cars at an overpass on the freeway on a downgrade, apparently thinking the overpass was a stalled vehicle.

This is stuff being actively put into cars. It probably works most of the time, as designed, but not always. In fact, it can cause dangerous problems. We truly are not ready for autonomous vehicles at this time. The technology is not up to the job, really, It may never be. Sorry.

So, I"m glad I bought the cheaper trim level. Even it, though, has automatic stop and go that shuts the engine off at traffic lights and stop signs, restarting it when you take your foot off the brake. Fortunately, it has a button on the dash that lets you disable that feature. I press that button immediately after starting the car. Every time. I do not want the 2 second delay it causes when a light changes, nor the extra wear on the starter and battery. Nope. Not to save a tiny amount of gas. Not happening.

[SKKY]

15. 15 years, tops.

UPS has already pre-ordered 500 of the Tesla Semis. Amazon can’t be far behind. Autonomous taxis are already being tested in limited markets. The writing is on the wall.

[MineralMan]

17. We'll see. Or you will.

I'm less likely to still be around 15 years from now, when I'll be 90 years old.

[redqueen]

16. It may very well be coming sooner than you think

Driverless semi-trucks could be sharing Florida highways as early as next year, and there will be no requirement that surrounding motorists know it.

Nor will autonomous driving systems need to be tested, inspected, or certified before being deployed under a new state law that takes effect July 1.

Starsky Robotics, a San Francisco-based startup company that’s been testing its driverless trucking technology in Florida and Texas, has put out a call for job applicants who one day want to pilot big rigs remotely.

...

https://www.orlandosentinel.com/business/fl-bz-starsky-robotics-driverless-truck-operators-20190613-jp2kdgmm6be7bg5ognwg66nqc4-story.html

[MineralMan]

19. We'll see. We won't know about how they do in mixed traffic until

they're out there operating for a while. In theory, they'll do just fine, and in controlled environments, they seem to work pretty well. But, in the real world, mixed with traffic being driven by humans, it will be hard to say how it all works out.

There are going to be some horror stories, I guarantee. That woman who died when a Tesla hit her in Arizona or Utah is a good example. People are going to die, once enough of those autonomous vehicles are on the road. That's a sure thing. How the public will react is unpredictable, so a few horrible deaths by accident with autonomous vehicles might very well take them right off the road again. Plus, there are legal liability issues. If a death is caused by the vehicle, there will be deep pockets to sue, that's for sure.

We'll see. At this point, we just don't know how that mix will work out. I think it will work out badly, to tell you the truth.

How many multi-million dollar lawsuit losses can, say, Uber handle? I guarantee that every death caused by a driverless Uber vehicle will generate such a lawsuit. Every last one. Same with the autonomous trucks. Who will eat the judgments when they come down? Uber? The trucking company? The manufacturers? Maybe all of them.

Look out!

[redqueen]

21. Yes, there will be accidents.

And just like every other safety issue, it will come down to $

They stand to save a LOT of $ by automating not just trucks, but hotel service, even more of fast food, call centers, and many back office jobs.

Yang is the only one treating this issue with the seriousness it deserves.

[SKKY]

24. I neglected to mention, the 15 years is a conservative estimate...

...you’re absolutely correct. It may very well come much sooner.

[redqueen]

31. Just thought I'd cross post this

Walmart is ramping up to increase automation of its in-store jobs early net year.

https://www.democraticunderground.com/1287326346

[Joe941]

7. That's a good plan.

[MineralMan]

11. The current US population over the age of 18 is 209,128,094.

That's from a Google search.

So, give those people $1000 per month. That would add three zeros, meaning that $209,128,094,000 would be handed out each month. Multiply that by 12 and it comes to $2.5095371 TRILLION per year.

So, where would that money come from, I wonder? Any ideas, Mr. Yang?

[Turin_C3PO]

12. The availability of funds

is the problem. However, I do think eventually we’re going to have to institute a basic income somehow. With the coming onslaught of automation, there’s not going to be enough jobs to go around, IMO.

[MineralMan]

13. That's always the problem. And it's a real problem.

Free healthcare.
Free college.
Free basic income.

Add them all up, and it's obvious that promising such things is a false promise. Those things cannot be passed through Congress. Not a chance. So, presidential candidates who are making those promises know for a fact that they can't keep those promises. It's simply not possible.

Voters need to be aware of that. They're not going to get all those free things. It's not going to happen. Instead, vote for people who can keep their promises, while leading the nation to make progress in all those areas.

[redqueen]

23. We can't do everything.

Yang isn't proposing free college and UBI. I agree with him that college js over prescribed. He's do reducing the cost but not making it free

[spin]

26. It might be wise to consider what we will do as automation changes our ...

work environment.

Perhaps we could tax robots.

[redqueen]

18. See post 4. nt

[MineralMan]

20. Yup. Forever.

It ain't happening.

[redqueen]

22. It's going to have to.

It's just a matter of when.

I'd rather stop being reactive, and start being proactive.

[RudyColludie]

25. Yang wants to eliminate the welfare system and food stamps and Veteran benefits

and replace all that with some sort of universal income where he gives $1000 a month to everyone, including rich people.

Who needs that?

It's Biden Time!



"Vote Joe or Trump won't Go!"

[redqueen]

28. Except none of that is true.

Food stamps (SNAP) stays where it is. However you can't collect both SNAP and UBI. It's up to each individual to decide what works best for them.

Yang's version of UBI, the Freedom Dividend, stacks with Veteran's benefits (and disability).

[MichMan]

29. No one is going to turn down $1000 per month to have food stamps instead

[redqueen]

30. I wouldn't think so either. Not with the hoops they make you jump through

and end up cutting you off for silly reasons too often anyway.

That's another benefit of UBI. Much lower overhead spent trying to help people.

Also we finally get to try a 'bubble up' economy, instead of trickle down. I've been dreaming of this for decades.

So many benefits. So few drawbacks.

[Kurt V.]

27. K&R