Besides the incentive problem, the major systemic problem with UBI is that it shifts savings from their ability to invest in factors of production to immediate consumption. It is true that there is a temporary and fleeting situation of difficulty-alleviation. But the more that capital accumulation is disallowed, the less wealth there will be in the years to come. If during the industrial revolution guaranteed income was set in motion rather than investment, our entire generation would be vastly poorer and less populated than we are.

Everything around us is the product of capital investment. And our children and grandchildren will have a standard of living that reflects our ability to save and invest in the present. Alleviation of impoverishment in the years to come depend on investment today. UBI is a revolt against rising standards of living.

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