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By paying a lot more.



Cheaper to hire a felon or immigrant. I'm not saying I agree with this arrangement.


Which is why nobody should be in such a weak position. It's exploitation pure and simple.


I don't disagree that it's exploitation, but I think you obscure a very complex problem with "nobody should be in such a weak position".

I'm not sure any economic or legal arrangement could do away with weak positions like that entirely.


UBI would go a long way towards pulling the very poor up out of the cycle of "I'll take whichever bad choice is least bad right now because I'm desperate."


We don't have that cycle in Germany at all. Yet we don't see any of the promises of UBI materializing.


Germany doesn't have Minijobs? They're pretty much what this article is describing.


Germany doesn't have

> the cycle of "I'll take whichever bad choice is least bad right now because I'm desperate."

Welfare covers the basics and provides for a modest life, no desperation included.


If welfare provides for a modest life, why are the Tafeln [1] overrun to the point of denying membership applications because of shortages?

[1] Die Tafeln are a group of privately-run food banks in Germany: https://de.wikipedia.org/wiki/Tafel_(Organisation) (no English Wikipedia article unfortunately)


Because free/cheap food allows you to spend the cash part of benefits on other things.


It provides no incentives to step out of it though. As soon as you start working again, the basics and the modest lifestyle is not covered anymore.


If you work a minijob, you get welfare (housing, utilities, health insurance, cash) + the first 100€ you earn are yours to keep. On the next ~350€ you'll pay 20% for social insurance and get to keep some of it, the rest is deducted from your benefits, so you'll keep 100% of your welfare + 184€. There's no way you're worse off than on benefits if you're working.

If you work more, your benefits will be reduced until you earn enough to not get any benefits. Roughly 20% of people on benefits work, but make less than benefits, so they get the rest via benefits ("Aufstockung").


So I work, but still get roughly the same as if I didn't work. 200€ per month more doesn't seem to be a great incentive to start working again if it's, let's say, one of the less desirable jobs.

Furthermore, the "Aufstockung" means that effectively the tax payer is footing the bill for companies unwilling to pay a reasonable wage.


15-20% more is some incentive, I agree though, the delta should be larger.

> Furthermore, the "Aufstockung" means that effectively the tax payer is footing the bill for companies unwilling to pay a reasonable wage.

In some cases, yes. But you can also view it as "we need to employ people, but their skills really aren't competitive, so it's better to give them some money from taxes than to give them 100% from taxes".


Re a very complex problem with "nobody should be in such a weak position".

It is only complex if avoiding questions about the value of human dignity, and the inability of laissez faire capitalism to deliver that, need to be avoided.


This is the crux of the issue. Most everything else herein is chin music.


Also avoiding realities of human nature.


I think libertarian socialism does exactly that but in this case what's being argued for is JG (and UBI) which would help empower many, so we shouldn't be arguing against those things (not saying you are.)




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