RyanTanaka

Fixed and Basic Income During Recessionary Times

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UNISWAP:UBIDAI   None
The talk of economists these days seem to be "Cash is King" (esp USD) vs "Cash is Trash". While it's true that a lot of people are liquidating their assets now in favor of dollars, given that our economies are interconnected more now than ever before, this might only last for a very short period of time.

While the market is likely to go into panic mode soon (the top-earners are finally getting a *tiny* taste of what people below them have been going through for years) it might help to take a step back and look at the bigger picture since most of the problems with the economy right now are existential, not technical.

Sort of a throwback to my #YangGang days with Andrew Yang, but UBI would have been pretty nice to have right about now. Yes, UBI does help alleviate poverty, but it also helps stabilize economies and labor markets during difficult transitions as well - that's what it was designed to do originally, and it is a brilliant idea that is literally good for *everyone*.

As stock/asset prices start to plummet, everyone is talking about moving their money to "fixed-income" sources now, to help stop the "bleeding". One of the silver linings of the recession is that there seems to be higher demand for labor, which could potentially increase wages and stabilize the economy that way - but people do need time to adjust and learn new skills to find new work. UBI does both in a simple and elegant way.

One of the big criticisms of UBI was that it would cause inflation since it would bring up the costs of everything. It's ironic to see how inflation became the talk of the town now despite the opposition coming from both sides of the political spectrum. Purchasing power is relative - the way to look at UBI from a budgeting standpoint is that you're dedicating a % of your total funds toward stabilizing the economy, which - again - should be good for everyone.

Hindsight is 20/20 and unfortunately we're now forced to work with what we did (and didn't) do thus far. Many economists - including major ones - have been eyeing cryptocurrencies as a potential "safe haven" during the market crash that's likely to continue well into 2023-24. How likely is it for people to turn to crypto during trying times?

Staking rewards are currently outperforming bank interest rates and may become more appealing over time, while crypto projects based around the concept of UBI may start to gain favor as the top-earners realize that these models are in their own interest, too. (It's a big *if*, but UBI-tokens might be the thing that ETH needs to revive its lackluster performance post-merge, imho.) Most investors are running towards cash for safety now but if that fails too, there will be no options left. That's when crypto may finally see its day - time will tell.

www.theguardian.com/...-essay-irina-werning