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Comments on: A minimum income can replace a minimum wage http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/ The Visible Hand in Economics Thu, 24 Nov 2011 20:32:26 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Matt Nolan http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35871 Thu, 24 Nov 2011 20:32:26 +0000 http://www.tvhe.co.nz/?p=6514#comment-35871 In reply to Ian Random.

Interesting link, thanks!

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By: Ian Random http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35779 Tue, 22 Nov 2011 03:16:38 +0000 http://www.tvhe.co.nz/?p=6514#comment-35779 There was a study of minimum income done just north of where I live. If I remember right, with a guaranteed income there was no incentive for couples to work through difficult problems. I personally like a negative income tax to reward working toward something and only penalizing the working poor dollar for dollar for income earned.
SIME/DIME Study
http://aspe.hhs.gov/hsp/SIME-DIME83/report.htm

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By: Matt Nolan http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35689 Fri, 18 Nov 2011 05:05:17 +0000 http://www.tvhe.co.nz/?p=6514#comment-35689 In reply to Kimble.

Completely agree.

Furthermore, the advantage of structuring that way is that it makes the “concept” consistent with all policy – it is just a clear way of framing said policies.

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By: Kimble http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35688 Fri, 18 Nov 2011 04:36:45 +0000 http://www.tvhe.co.nz/?p=6514#comment-35688 In reply to Matt Nolan.

(I think this is probably pedantic, but I cant help feeling there might be something important in it.)

There is only one minimum. That would be the lowest amount society is willing to give to any group. Everything else would be a premium.

A premium for having children, a premium for producing art, a premium for being funny.

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By: Matt Nolan http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35680 Fri, 18 Nov 2011 00:26:51 +0000 http://www.tvhe.co.nz/?p=6514#comment-35680 In reply to Kimble.

Agreed with everything you wrote.

However, there is one additional point I would raise.  Society can say that it is willing to give a higher “minimum level” to some people than others – for example, society may be more willing to give money to people who have a willingness to work, than to people who enjoy playing computer games all day (I like to think I fit into both categories 😀 ).  In that case, we get a debate about “separating out” the minimum level based on what society thinks is right.

I would prefer we make such value judgments explicit, rather than rolling around with the current system that makes many value judgments implicitly.

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By: Kimble http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35679 Fri, 18 Nov 2011 00:01:29 +0000 http://www.tvhe.co.nz/?p=6514#comment-35679 I don’t think you can separate the discussion of whether there should be a minimum income level and what that level should be.

The absence of a minimum level is actually just a special case of having a minimum level, just that its value is zero.

So your belief that there should be a level must also come with a belief of what the level should be. (Note, a response of “non-zero” will be met with a question of whether it is a non-zero value above $1, then $2, then $3….)

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By: Matt Nolan http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35677 Thu, 17 Nov 2011 22:32:24 +0000 http://www.tvhe.co.nz/?p=6514#comment-35677 In reply to Starling.

I wouldn’t say its a direct fairness trade-off – it depends what society defines “fairness” as.

What I was trying to imply is that society as a whole may not believe that people deserve a minimum standard of living as a result of being alive – they may think that someone is only “part of society” if they are willing to work.  In that case, the way the scheme would work in order to follow the social will would be different.

Part of the reason that my suggestion of that is unconvincing is the fact that I don’t believe it – I do feel that everyone deserves a minimum income solely as a result of being part of our society.  And that probably comes through in what I write.  But ultimately, society determines what is right, not me, and as a result this is a point of view we need to take into consideration 😀

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By: Starling http://www.tvhe.co.nz/2011/11/18/a-minimum-income-can-replace-a-minimum-wage/#comment-35676 Thu, 17 Nov 2011 22:19:01 +0000 http://www.tvhe.co.nz/?p=6514#comment-35676 Sorry for density, but could you unpack your last sentence a bit more please? Do you mean we don’t face a situation where we have to make a choice between income adequacy on the one hand and fairness on the other?  I can’t see that you can say that we don’t have an issue with income adequacy and we don’t have an issue with fairness.

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