Recently, Andrew Yang aggressively embraced Twitter by announcing his Universal Basic Income (UBI) proposal known as the "Freedom Dividend". While throwing money at people generating pocket money always generates a buzz, there is a broken side on the mathematical and ethical planes little talk about.
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A political cartoon of real life
It was not so long ago that people joked about the typical shyster politician and their larger-than-life campaign promises. We are laughing at the White House 's next victory over politics sweeping the ball of fat by giving money to voters to buy their support. Well, now, under the guise of a new presidential campaign, the launch of money is taking place. Criticizing Andrew Yang is not an easy task, given the understandable and dynamic support he has received in the context of a totally corrupt and greedy political and financial system. However, it remains to ask: is he really ready to change things? Looking more closely, UBI is an inept and unethical ploy of socio-economic power.
If it's good to give $ 10,000 a month to 10 Americans, imagine what it would do to do the same thing for hundreds of millions of us. It will be one of the greatest days in the history of mankind.
– Andrew Yang🧢 (@AndrewYang) November 1, 2019
Generous (with other people's money)
Math. It is a discipline like no other for its exact answers and lack of room for debate. One plus one is two. There is not much possible dissension here, outside the circle of stoner drums or metaphysical fireside chats. Of course, there is nothing wrong with that, but it's just to lay the groundwork for an argument. Namely, we can not give value that we do not have. While Yang is currently giving out a "Freedom Dividend of $ 1,000 a month for a year to 10 American families," once in power this money intended to "do the same thing for hundreds of millions" will come from your pockets.
Yang's campaign website lays the groundwork for his proposed "free dividend". While a dividend is usually defined as a share of the profits paid to shareholders, Yang's "dividend" will be made possible "by consolidating some social protection programs and by implementing added value." A 10% tax "Not exactly a share of the profits as much as money taken out of the pockets of Americans, but, for the sake of debate, this will suffice for the moment." By soothing inflation fears, "it's all right." negative economic impact and even nascent communism, Yang maintains on the site:
The federal government recently printed $ 4 trillion for the bailout of banks in its quantitative easing program without inflation.
This assessment is massively dishonest and, if not, massively ignorant of basic economic realities. In other words, he ignores mathematics. There are many types of inflation and some of the most pernicious are hiding beneath the popular reference surface. Although consumer price inflation (CPI) may seem almost unchanged during some periods of quantitative easing (QE) due to a combination of market factors (including the lack of equities). The psychological aspect of consumer confidence), rising asset prices are the real trigger for more serious problems. In other words, even if the train of titles of modern governments degenerates, if the population has confidence in its money and the state reassures on its value, the CPI can remain relatively stable and the companies will not be able to increase their price because of this psychology and other factors such as healthy and corrective deflation.
While Yang claims that printing $ 4 trillion for bailouts has not caused any inflation, the real estate and property market is calling BS in an unprecedented and truly scary way. If a house was worth $ 200,000 five years ago and it's now worth $ 300,000, that does not necessarily mean that the house has changed or that the property has legitimately gained in value. This often means that the dollar is significantly weakened relative to the asset. As these asset prices are inflated, banks are able to make larger and larger loans against the guarantee of assets. Once the template is in place, the bubble burst and the drop is severe, the value of collateral no longer covering loans. The chart above shows how much this buildup is increasing, with asset inflation being signaled by US household net worth to GDP, peaking at an all-time high since 1952 of 535%.
Yang's proposal is not only economically unfounded, it is also morally reprehensible. It's a hard pill to swallow for many Generation Y and Yang gangsters of all ages, tired of struggling and struggling with the current corrupt paradigm of Keynesian. That said, Yang's "future" does not differ from the vague and vague "hope, change" or "I'm a better man" from previous candidates.
To pay the dividend of freedom, Yang proposes to rob you. Business owners who do not wish to apply the suggested VAT would be punished for refusal. Consumers do not wish to pay, too. This is an unpleasant reality, but there is no way to say it more precisely. Yang explains:
A Value Added Tax (VAT) is a tax on the production of goods or services produced by a business. This tax is fair and it is much more difficult for large companies, experts in concealing profits and revenues, to avoid paying their fair share.
Many do not know what should be Andrew Yang's fair share. If, in the same way, I was forced to pay each neighbor, I have a portion of my paycheck because 15 or 20 of them said that I had to be put in a cage people would naturally be scandalized by sociopathic suggestion. But if theft is euphemized as a "dividend of freedom," it suddenly becomes more enjoyable for the masses. While some maintain that taxation is a necessary evil to preserve civilization, this position is illogical. There is nothing civilian to steal from anyone under the threat of violence, and a social need in no way justifies criminal activity. If this were the case, American protesters against abolition would have been right to protest against the abolition: "But who will pick cotton !?
Leaving aside Andrew Yang's universe for a moment, it seems important to approach cryptography as a potential solution to the current political corruption it is supposedly opposed to. A recent Washington Post article states, "Facebook's cryptocurrency will not help poor access banks. Here is what we would do. The article then goes on to explain the impossibility for Facebook's future Facebook cryptocurrency to help unbanked people, due to government regulation. Ironically, the article ends by suggesting that the same domineering government is the solution, stating, "It is true that financial inclusion would help millions of Americans and benefit the economy. But this can be achieved through democratic and proven institutions. In fact, the United States already has a system of public payments: the Federal Reserve. "
What so few people in space seem to understand about cryptography is that the banking potential of allowing unbanked people to get out of poverty, save money and create wealth for an average person Already exists. The state opposes endless surveillance, KYC / AML requirements, taxes and capital controls, so this is currently happening in regulatory cracks.
Instead of a $ 1,000 monthly cash paycheck, why not give up all trade restrictions and allow people to grow their wealth and their businesses independently? If we fear that the criminal warlords and the royal commanders take over, just look around – they have already done so. It is precisely because of the illogical centralization of power and the lack of a level and equitable playing field that a candidate like Yang can acquire a place of choice. In a free society – and not wanting to offend Yang personally – he would probably be recognized as an ordinary hustler.
What are your thoughts on the UBI proposed by Yang? Let us know in the comments section below.
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Images courtesy of Shutterstock, Eric Glenn, Fair Use.
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