Thursday, September 24, 2020

Universal Basic Income fails its first review in 1835

 Via Rob HendersonNot certain where this text originates but almost certainly from an introduction of Alexander de Tocqueville's Memoir On Pauperism.  

Tocqueville's Memoir on Pauperism was published in 1835, shortly after the first volume of Democracy in America. He had visited England, then by far the most prosperous country in Europe, if not the world. But there was a seeming paradox: a sixth of the population of England were —or had made themselves—paupers, completely reliant upon handouts from public charity. This was a proportion greater than in any other country in Europe, even in such incomparably poorer ones as Spain and Portugal. In the midst of what was then the utmost prosperity, Tocqueville found not only physical squalor but moral and emotional degradation. 

Tocqueville surmised that the reason lay in the fact that England was then the one country in Europe that provided public assistance, as of right, to people who lacked the means to support themselves. The reign of Elisabeth I had conferred this right, as a way of dealing with the epidemic of begging that followed the dissolution of the monasteries. In the past, they had provided essentially private and voluntary charity to the poor, on a discretionary basis. 

At first sight, remarked Tocqueville, the replacement of discretionary charity by public assistance granted as of right appeared deeply humane. What, he asked, could be nobler than the determination to ensure than no one went hungry? What could be more fair and reasonable than that the prosperous should give up a little for the welfare of those with nothing? 

If men were not thinking beings who react to their circumstances by taking what they conceive to be advantage of them, this system doubtless would have had the desired effect. But instead, Tocqueville observed the voluntary idleness to which the seemingly humane system of entitlement gave rise—how it destroyed both kindness and gratitude (for what is given bureaucratically is received with resentment), how it encouraged fraud and dissimulation of various kinds, and above all how it dissolved the social bonds that protected people from the worst effects of poverty. The provision of relief by entitlement atomised society: Tocqueville cited the case of a man who, though financially able to do so, refused to support his daughter-in-law and grandchild after his son's death, precisely because public support was available to them as of right. Having paid his taxes, why should he do more? The provision of charity as of right destroyed the motive for human solidarity in the face of hardship, and undermined both ties of personal affection and the sense of duty toward close relations. Intended as an expression of social responsibility, it liberated selfishness. As Tocqueville grasped, the shift of responsibility from individual to collectivity had an enormous and deleterious effect on how people thought and felt, 

Also related to pathological altruism.

This is not an indictment of social security, UBI or unemployment insurance.

It is a simple acknowledgement that all social interventions have moral hazard, unintended consequences, hidden costs which are not easily taken into account.  Dux cave - decision maker beware. 


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