Can we Give out Free Cash to Everyone?
Andrew Yang is running for President. Who is Andrew Yang? He is one of 1000 Democratic candidates (just kidding, although feels like it) running for President. At the heart of his campaign is the Universal Basic Income Payment. Yes, he wants to pay everyone $1000 a month free from the government and you are allowed to spend it as you want. No strings attached...
The government has "plenty of resources, they're just not being distributed to enough people right now," he says.
What is it about politicians that they think you can give free things away and it works? The last time I checked, we were 21 trillion dollars in debt and have 115 TRILLION DOLLARS in unfunded liabilities. If we have plenty of resources, why not eliminate some of this debt?
Politics are an insult to the intelligence of each US Citizen.
Here is how he is going to pay for it:
"Under Yang's plan, the UBI payment would be funded by a "new tax on the companies that are benefiting most from automation," he says in a video on his campaign's website.
That tax, he explains, would be a value-added tax (VAT) of 10 percent on goods and services a company produces. (Europe already has a VAT, with rates ranging from 17 percent in Luxembourg to 27 percent in Hungary as of Jan.1, 2018, according to the European Commission.)"
OK, first problem - he is comparing something that Europe is doing and implying it is working. Europe is a financial train wreck overrun by socialism. That is like saying "lets run the same plays that the 2-7 New York Giants are running because it is working for them."
Here is the problem with politics - I will illustrate by my own announcement.
I plan to run for President. I plan on giving free college to everyone. I plan on eliminating taxes for one year. I will raise taxes on those who can afford it to pay for it. Oh, and I will throw in free healthcare for the entire world. Just come to America where everyone lives in freedom. It all works out in theory and on paper. Please vote for me - your life will be better off.
You can make anything work on paper. However, in reality, it doesn't work. Unfortunately, most people don't realize it. If it were that easy, it would have been done. This is why political soundbites work. They just have to sound like they work to get buy in.
Welcome to the up and coming three ring circus they call the 2020 election cycle.