Re: [Taler] Taler and UBI

[Jacob Bachmeyer]

Sebastian Javier Marchano wrote:
> Not UBI is implemented in the same way, but what you can expect from 
> an UBI is:
>  * prevent accumulation of capital: denomination that daily/weekly 
> expires. If the person didn't use the money, it is lost. Since this 
> kind of money it's intended to be used for basic needs (like transport 
> or food) this may not be bad. Note: it's lost from the person 
> perspective, from the bank perspective it is saved.

If I understand correctly, that is simple enough:  UBI tokens would not 
be refreshable and UBI would need to be in frequently-issued small 
amounts.  Since UBI would need to be automated anyway, this is 
practical, but potentially dangerous to the economy:  currency must be 
/durable/ and expiring tokens are not.  That creates perverse incentives.

>  * prevent spending UBI money on other products/services that are not 
> basic need: implement as the age protocol.

This is the feature creep that I warned about when the age protocol was 
proposed.  It causes the same economic distortions, too:  UBI with 
restricted tokens will inflate the prices of basic goods by increasing 
the propensity to spend, as the UBI tokens are otherwise worthless.  
There is a fair risk that this would lead to an underground economy 
using "basic goods" as currency.


-- Jacob