I see what you're saying, although... Based on that explanation, I'd expect to see a much more diminished frequency / intensity of the PayDay loan issue, but...
...if Something Happens and you run out of cash this month, why would you expect to a) not have Something Happen next month or b) have enough surplus next month to repay the "loan"?
Well, I guess you'd want to peg the BI at "average cost of living plus buffer", so that the person always has enough liquidity to cover, say, a standard deviation of Oh Shit over the course of N months. Or, keep safety nets as nets (rather than traps) so that Oh Shit, Something Happened events don't cause this issue.
...if Something Happens and you run out of cash this month, why would you expect to a) not have Something Happen next month or b) have enough surplus next month to repay the "loan"?
Well, I guess you'd want to peg the BI at "average cost of living plus buffer", so that the person always has enough liquidity to cover, say, a standard deviation of Oh Shit over the course of N months. Or, keep safety nets as nets (rather than traps) so that Oh Shit, Something Happened events don't cause this issue.
Hmmm.