Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Will The Swiss Guarantee 75,000 CHF For Every Family?

Politics / Social Issues May 26, 2016 - 12:19 PM GMT

By: GoldSilverWorlds

Politics

The Swiss public will have to approve or reject a change in the constitution that would allow for an Unconditional Basic Income (UBI), or a preset, monthly minimum income to be paid out by the government to every adult and child in the country if their income falls below a specific threshold. Even though details of this proposal have been few and far between, the most commonly cited amount of this guaranteed income would be 2,500 Swiss Francs for adults and 625 francs for children. The architects of the proposal stress that this government-guaranteed payment, unlike the current benefit programs, will be entirely “no questions asked”, i.e. it will not be means-tested and it will apply for every person legally living in Switzerland.


Currently, these are all the details that the Swiss have at their disposal to make their decision. No plan has so far been put forward to specify how such a proposal would be financed, whether an increase on income tax or VAT will be enforced, which specific existing welfare programs it would replace or how they would avoid the glaringly obvious exploitation possibilities of such a plan, without any kind of means test – or without “asking any questions”, as is one of their campaign’s catchphrases.

The main argument of the supporters of this initiative is that it would support the people that will, or already do, lose their jobs to automation and technological progress; a defensive move against “the rise of the robots” as they put it. They also claim that such a measure will give people the opportunity to grow, to learn and to pursue skills or professional goals that are now rendered prohibitive by their current meaningless and mundane jobs, that they are forced into for simply paying the bills. “What would you do if your income were taken care of?” asked the pro-UBI campaign in Geneva, with a poster that officially made it to the Guinness Book of Records as the world’s largest.

The Free Lunch – A Fantasy As Old As Methuselah

The promise of a free lunch is by no means a new thing in politics. Getting “something for nothing” is an age-old shiny trinket that has been dangled before the eyes of the public since time immemorial. In fact, it has appeared so excruciatingly often in our political history, for centuries on end, that one would think that it wouldn’t work anymore; not in 2016, surely. And yet it does. UBI is the proof that there are still people who choose to believe that “no strings attached” freebies and gifts are promises one can rely and build an economy on, especially when they are coming from their governments and rulers.

However, there are always some strings attached to such gifts and if history has taught us anything on this matter is the distinction between a gift and a bribe. Unsavory political ideologies and catastrophic cultural philosophies often tend to make their debut in front of the public hidden inside a Trojan gift horse. Unrealistic yet enchanting promises have always been a reliable political tool and it was always quite “unchallenging” as a strategy, to corrupt the people by granting the majority something they have stolen from minorities. We can easily spot the parallel in the promotion of Basic Income: Even though the architects of UBI in Switzerland, quite wisely, omit any reference to the realistic and structural aspect of their scheme, at the end of day, someone will have to pay for it. “Tax the 1%!”, argue their international fellow basic income supporters, which, rather predictably, makes UBI even more attractive to a large portion of the public. This whole discussion about UBI reminds us of the following quote by Thomas Jefferson:

“A government big enough to give you everything you want, is a government big enough to take away everything that you have.”

Thomas Jefferson knew a thing or two about the true nature of government. By accepting a “free lunch” offered by the government, one is no longer free, but becomes dependent on the whims of the ruling elite – which is of course precisely what the ruling elite wants. In other words, what happens in reality is the exact opposite of what the UBI supporters imagine will happen. They assert that a basic income distributed by the State will “free people”, as they will no longer be forced to deal with the drudgery of having to earn a living. Thus, in a quite Orwellian twist, dependency is marketed as “freedom”.

The Cultural Argument For Collectivism

Key figures of the pro-UBI camp take pride in claiming that the main motivation behind the campaign is not economic but cultural. They say this proposal aims to make people think about the nature of life and work, it is a way to liberate them from the jobs they don’t like but need, a status which the scheme’s advocates, quite unhistorically, equate to the indignity of slavery. On top of this, they claim, UBI will help society survive the imminent unemployment apocalypse: they believe that with the help of automation and artificial intelligence 50% of all the existing jobs will be taken over within the coming decade by computers and machines. Such an argument might sound rational, but goes deeper than that: It presupposes that we as human beings see ourselves downgraded and equated to a machine, like just another cog that can be replaced at any time, in a system where man is defined as a human resource, literally.

The truth is that it is indeed a cultural debate, far more than it is an economic one. The only conceivable aim of such a factually unhinged and unfounded proposal can be to gage the mind-set of the Swiss people in this moment in time. The outcome of this referendum can provide a valuable insight about the Swiss mentality, and whether they are prepared to accept collectivism over individualism. Such a signal could serve as cue for further escalation of government empowerment: After all, the collapsing centralized system, is bound to show symptoms of desperation by “doubling down” and accelerating and maximizing its centralization efforts. Thus focusing on the symptoms and secondary effects is futile; a real difference can be made by addressing the root cause, the system itself.

Despite the economic non-sequiturs and plain utopianism that lie at the core of the idea of Universal Basic Income, the concept seems to be gaining popularity worldwide. Canada is set to conduct an experiment with this idea later this year. The city of Utrecht in the Netherlands is launching a pilot program, Finland is planning a two-year trial and a British proposal is gathering interest, while this month, the nonprofit group GiveDirectly will start providing a guaranteed income to 6,000 Kenyans in a decade-long scheduled program and track the results. The western left seems to be gaining traction for this idea, however the polls in Switzerland paint a dramatically contrasting picture: the UBI initiative is projected to suffer a crushing defeat.

A Bastion Of Liberty

The Swiss have been voting counterintuitively for years: When they held a referendum for or against 6 weeks of vacation, or when they were called upon to vote for an initiative advocating less working hours, or even when they made their choice on the issue of minimum wage, they always deliver outcomes that seem surprising to the rest of the West, especially the rest of Europe. Up to now, the Swiss consistently reject interference by the state when it came to this kind of topics and they refuse to grant more powers to their government. Even in recent years, when the trend for aggressive state expansionism seems to be stronger than ever, Switzerland appears to still hold the fort, as the last standing bastion of liberty.

So what’s so different about the Swiss then? Switzerland is indeed very different, because it became a nation by its peoples’ own will, based on limited government, strong private property rights and a direct democracy founded on the principles of subsidiarity. This has always required open dialogue and being exposed to different ideas and values: Debate itself, leads to an enlightened society. Thus, the essential difference lies in the nation’s culture, mentality and philosophy. The Swiss have grown up in an environment where the people were always able to decide for themselves, but they have also a long tradition of doubting and of dissenting. Every critical issue is discussed and decided on by the people, the actions of government are subject to and limited by the citizens. All viewpoints are heard, even anti-establishment voices have their say, and critical thinking provides the basis for the society’s future. However, this is only possible when people use their own mind to think about a specific topic individually and independently.

High up in the Swiss Alps, where they are playing strange instruments. The Swiss have always stood up for the rights of the individual against the State. They successfully defended themselves against the Hapsburg dynasty and other would-be conquerors, and attempts to introduce collectivist decay from within have been consistently rejected as well.

Switzerland is, therefore, quite the hostile terrain for those who wish to promote their free lunches and their “no strings attached” gifts. Their long history of independent thinking, of consequential analysis and of government limitation, makes it very easy for them to see past the populism-fueled empty promises and their matching publicity stunts. Their rejection of the UBI proposal on June the 5th will and should serve as a reminder that the Swiss still remain the exception to the rule.

By Claudio Grass, Managing Director at Global Gold Switzerland.

About the author: Claudio Grass is a passionate advocate of free-market thinking and libertarian philosophy. Following the teachings of the Austrian School of Economics he is convinced that sound money and human freedom are inextricably linked to each other.

Source: http://goldandliberty.com/libertarian-thoughts/will-swiss-guarantee-75000-chf-every-family/

© 2016 Copyright - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in