On removing the danger of economic free fall..
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The most controversial of the plans is the universal basic income, whose best-known contemporary proponent is Philippe van Parijs, a professor of economic and moral philosophy at the Catholic University of Louvain, in Belgium. In his 1995 book Real Freedom for All: What (if Anything) Can Justify Capitalism? (Oxford University Press), Mr. van Parijs argues that the liberal value of freedom presumes that humans have an array of realistic choices. And having such choices, he says, depends in turn on having at least a certain level of resources. Therefore society should guarantee everyone a basic income, which would be financed through progressive taxation. The basic income, Mr. van Parijs says, should be as large as the economy can efficiently sustain.
The most common objection to Mr. van Parijs's model is that it would represent an unjust transfer of resources from people who do productive work to people who choose not to. (Scholars like to refer to this as the "Malibu-surfer problem.") Mr. van Parijs replies that the liberal principle of neutrality among conceptions of the good life, as articulated by such philosophers as Ronald Dworkin and the late John Rawls, demands that the state not favor the industrious (the "crazy," as Mr. van Parijs facetiously calls them) over the lazy.
Mr. van Parijs also makes a more subtle point: He says that a universal basic income might actually draw certain unemployed people into the labor market. "Part of what motivated this plan," he says, "was an awareness that the existing benefit schemes tend to create dependency traps." In means-tested benefit programs like the U.S. welfare system, you can often immediately lose all of your benefits if you take a job. "But if you have this floor of income that you're entitled to no matter what," he says, "that's a way of getting you out of that trap." (The same insight lay behind the conservative economist Milton Friedman's early-1970s proposal for a negative income tax, which would be structurally similar to Mr. van Parijs's universal basic income.)