In the argument against income inequality, what is often overlooked is the value that comes from unequal incomes, which lead to labor market equilibrium. Jobs that require more skill, a longer training period, or less-pleasant working conditions need to offer higher salaries to attract talent. If we were to level the income playing field, so to speak, we would create labor market disequilibrium.
Thus, a problem with Universal Basic Income (UBI) proposals is that they would empty the ranks of the low-skilled employees. Now, usually UBI is presented as a response to this emptying instead of a cause of it; […]
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