Quote:
Originally Posted by Bill Bumface
Gotcha, I misinterpreted. As long as it doesn't get "removed" at some point, I think it can work. You just don't want anyone weighing a decision to improve themselves or progress with "You will lose X thousand dollars per month" as an element of that decision.
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Agreed, though even clawbacks can have a certain level of disincentive that comes along with it. I remember I worked with a guy who had 8 kids and he told me once that not getting a raise at work wasn't the worst thing in the world. He calculated his marginal rate to be around 75% since each extra dollar made clawed back a lot on other support programs. His situation was a bit unique, but that's still not an ideal scenario.
I think a good goal of something like UBI would be to prevent issues that like happening. Where we combine as many social programs into one as possible, so the clawback is slow and predictable and hopefully not a disincentive.