Jeremy Chen: The fact is, a rudimentary welfare system will not destroy incentives to work. Those who assert that simply demonstrate a lack of understanding basic economics and human psychology. Getting people up to a living wage is like helping a drowning person get above the water surface a little longer so he can gulp down just enough air to not drown. It gets them to the point of survival. They will still be motivated to work hard to get themselves to a point of comfort. What passes for comfort will vary from person to person, but by and large it is far away from bare subsistence. Below comfort, there will always be the incentive to work. Aside from the humanitarian reasons for doing this, one can argue from the point of view of productivity. People who are fed (note: fed not well fed) and who have their bare basic needs met are significantly more productive. Those who contest this should try the nutrition deficient food diet for a month and start recording their productivity two weeks into it. This productivity boost may be attributed to improved presence of mind, more energy and a calmer state of mind given that basic needs have been met. Think about it...
Posted on: Tue, 30 Dec 2014 10:59:56 +0000