Posted on May 24, 2016 by Art Powell
As the economy tightens occupational licensing is becoming more prevalent and controversial. This blogger sees it as involving three issues – income protection, competition and competency.
Occupational licensing is the trend to require people in more and more occupations to have licenses to practice. It has traditionally been used for professionals and is usually said to be needed to protect the public from incompetent practitioners. As more occupations have required licenses it appears to have gone to ridiculous extremes.
Regardless of the public protection arguments the main function is to restrict competition and it appears to be working according to an article which shows higher incomes for those so protected. This is good for workers who are protected but does nothing for people who remain unemployed or otherwise unprotected from competition. Another way to help people with income problems would be a universal basic income. A UBI would ensure all people would have the opportunity for a minimum standard of living.
A UBI would also allow us to maintain a market economy based on competition with all the benefits efficiency and individual decision-making.
Occupational licensing also restricts the right of consumers to make choices about the services we purchase. A lot of us do not always have the knowledge to evaluate a practitioner. This blogger likes Milton Friedman’s proposal for certification by private organizations rather than licensing by governments. There could be different levels or types of certification. This would help those of us with out knowledge and maintain our right to make choices for ourselves.
There are other ways of resolving the issues that lead to occupational licensing and these ways would protect the incomes of everyone, allow more competition in the economy and protect us from our ignorance.
Filed under: Economics | Tagged: certification, competency, Competition, income protection, occupational licensing, unemployed, universal basic income | Leave a comment »
Posted on May 17, 2016 by Art Powell
Proposals for a universal basic income are bringing out lots of arguments which show a lack of understanding of the UBI and the nature of money. Here is an example in an article from The Independent.
The author of the article claims a UBI will open the door for increased government control over people’s lives. This blogger figures the opposite will be the case and an income scheme will be a tremendous transfer of power to individuals.
The first and most important thing to say about a UBI is that it needs to be a part of a radical overhaul of the way in which we exchange goods and services and the way in which we create money. Probably the current economic crisis is the result of our having used up the most easily accessible of energy and mineral resources. There are lots of these left but they require lots of energy to extract. The fractional reserve way of creating money also has lots of problems and needs to be reformed.
There are lots of people who want to tell others how to live and those of us who value Independence will always have to be vigilant and assertive. This is separate from the UBI and will be an issue regardless.
Money represents purchasing power and giving it to people empowers them in that they can make purchasing decisions according to their values. This is different from food stamps in that stamps are for specified products and can hardly be the equivalent of money. A UBI will be a tremendous transfer of power to individuals and one would expect a lot of people to object to this. Some of those who object will likely be the bankers whose power derives from creating fractional reserve money.
Another UBI issue is dependency. Some people including the author of the reference article fear it will make us more dependent upon the state. I beg to differ because we should think of the UBI as an inheritance. We can have it because we have such large agricultural surplus which is based on hundreds of years of agricultural and technological development. We should all have a right to a share of the agricultural surplus.
The universal basic income will lead to a revolutionary change in the way we exchange goods and services. Many of the issues are discussed in my book Funny Money: Adapting to Down Economy. I encourage you to have a look at it. Details at the top of this blog.
Filed under: Economics | Tagged: energy and mineral resources, fractional reserve banking, money, purchasing power, UBI, universal basic income | Leave a comment »