[Note: In order to emphasis its inherent meaning, the current ‘Raise the Rate 4 Good‘ campaign is rephrased as ‘Raise the Rate 4 Eternity‘.]
Rather than income-Welfare (including that for the Unemployed), which is targeted rather than universal, the optimal policy is ‘The USI-Reform’ of trading-in Universal Minimum Hourly Wages (UMHoW) system for The Universal Survival Income (USI) because it:
- Eradicates Poverty
- Eradicates Unemployment/Underemployment as per the economics’ definition ‘people who want paid-work at the going rate cannot find paid-work’
- Makes society far more prosperous and the Government budget far healthier because:
- Via substantial labour-market deregulation (including UMHoW eradication), business is unleashed, which generates vast productivity increases, which, in turn, generates increased company and income tax
- There are massive savings in health (including mental-health), law-enforcement, charity (11% of the economy and 5.7 million volunteers pre-pandemic) & bureaucracy (including Centrelink disbandment)
- Eradicates the gain-paid-work-lose-income-Welfare distortion.
Lastly, The USI-Reform does not cause other Socio-, Econo-, international-Enviro- or natural-Enviro (SEE-in) problems and, on the contrary, assists all of them.
Regarding the Unemployment benefit’s Raise the Rate 4 Eternity policy, it is suboptimal with a number of problems:
- It is government budget detrimental
- Recipients are Stigmatized – i.e. ‘the dole-bludger narrative’ – because it’s targeted rather than universal
- Recipients are Harassed – i.e. ‘mutual obligations’
- It increases the gain-paid-work-lose-income-Welfare distortion.
Poverty, Stigmatization and Harassment are the greatest causes of most other social-problems such as mental-health, drug & alcohol escapism and domestic violence.
Due to government budget pressures, even if the Unemployment benefit is raised, there’s always pressure to decrease it again and/or increase ‘mutual obligations’, which can be used to push recipients (especially those with the least education and the most difficulties) off it, though, they still need it.
Because it’s detrimental to the government budget, governments will always be incentivized to decrease income-Welfare whether by using Stigma such as government ministers (and even Prime Ministers) saying such as, “You’ve got to have a go to get a go” and/or by programs such as Robodebt, Work for the Dole, ParentsNext etc.
Also, these budgetary pressures mean even if we do get a Raise the Rate or some such, more than likely it will lead to cuts elsewhere and/or a change of government, which will promptly ‘recalibrate’.
Regarding Stigma, there is the ‘lifter/leaner’ narrative which, ironically, results in the so-called ‘lifters’ being ‘dividers’, which, insidiously, is usually far more damaging that a so-called ‘leaner’.
In addition, income-Welfare corrupts both ‘Coopetition-contributive’ and ‘self-actualisation’ empowerment, inspiration and energization.
Although some have ideological objections to even considering trading-in the UMHoW system, those on the minimum-wage will be vastly better off – i.e. while a full-time UMHoW worker receives less than $40,000 per year (after tax), with The USI, their income will be The USI + their salary. In addition, their partner will receive The USI and their adult-children will also receive it. Lastly, with business booming, their wage is likely to be bid-up.
The USI-Reform is a PUSCHE-eradicator – i.e. it eradicates Poverty, Unemployment (and Underemployment), Stigma (‘the dole-bludger’ narrative including its racist and disablist variants), Corruption (particularly, Developing World relevant), Harassment (‘mutual obligations’) & paid-worker-Exploitation (PUSCHE).
In addition, The USI-Reform will Close the Gap within a generation, address Disability issues (via full-employment and reducing Disability payments to ‘top-ups’ and, via being both guaranteed and mobile, help women & children suffering Domestic Violence.
[Updated July 27, 2022]