Could UBI END AMERICA As We Know It?
All through my years growing up and learning from my rich dad, he encouraged me to study the history of the rise and fall of great empires. One of the empires he had me study was the Roman Empire.
During one of these study sessions, rich dad said, “The Roman Empire had great technology for conquering and taxing people so they were able to create a vast empire. Their difficulties began as people moved off the conquered lands and into cities such as Rome. As the city of Rome grew, the leaders became concerned that the urban mobs would revolt if they had no jobs, shelter, or food. So the Romans fed the people and created great distractions such as the Colosseum to entertain the masses. Soon Rome became a great city of people who expected to be entertained and fed.”
What my rich dad was really saying was that Rome became a welfare state.
Rich dad explained, “It became a large government bureaucracy. Instead of solving problems, they created more problems. It was also a very litigious state. There were more lawsuits per capita than even in America today because more and more people wanted to blame someone else for their problems, rather than solve their own problems. As a result, the problems only increased. The more problems they created, the more bureaucrats were needed. As the problem got bigger, so did the government.”
Just as we are seeing today with the printing of trillions of dollars and sending stimulus checks to Americans, Americans are becoming more and more dependent on a large government.
Could that happen to America in a few years? Most Americans think not. Unfortunately, too many Americans have come to expect that the government will solve their problems. I am afraid that, rather than solve the problems, an older America will vote for more government and higher taxes. With Social Security the most popular act ever passed, I am afraid that those who depend upon Social Security will vote once again that the younger workers take care of them. If that happens, taxes will skyrocket. While it took hundreds of years for the Roman Empire to finally collapse, with today’s speed of money transfers, the great American Empire could fall pretty fast.
Stimulus Checks a Test Run for UBI?
When we pay people not to work, we are just paying them not to revolt. That was the lesson rich dad was teaching me about the Roman Empire.
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was passed by Congress on March 27, 2020. The $2.2 trillion stimulus package provided relief for Americans and for businesses who were reeling from the effects of the coronavirus pandemic. The package included financial help in the form of stimulus checks of up to $1200 for eligible Americans.
Almost two months later, on May 15, the proposed legislation known as the HEROES Act passed by the US House of Representatives is set to provide another round of stimulus checks to the American people. This package, however, is worth a massive $3 trillion and would increase the size of stimulus checks to individuals and married couples with children, but it also includes rental aid and mortgage relief.
I am almost certain that the proposed HEROES Act will not pass the Senate, but with the rise in the number of positive coronavirus cases, I am certain some amount will still be passed.
Some are saying these stimulus checks are exactly what Americans need, while others fear this a test-run for proposed Universal Basic Income.
In early 2020, Presidential candidates toured the country and lined debate stages pitching socialist-communist ideals, free education, free health care, free childcare, free food, and free money in the form of Universal Basic Income.
The “everything for free” platform would be paid for via MMT, Modern Money Theory. Rather than the Fed printing money and giving money to the banks, many of the socialists want the Fed to print money and give it directly to the people.
In my opinion, we will end up paying for “everything for free” with our freedom.
A Country Must Evolve
Rich dad noted that one of the reasons the Roman Empire fell was because the Romans never evolved from a basic technology of conquering and taxing. If they had evolved, their empire might have gone on for centuries.
Unfortunately, great empires seem to forget that they need to evolve. Spain was also a great nation that grew by taking and not creating. So it too fell from greatness after attaining great power and great wealth. It fell from power because it did not evolve.
My fear is that if we continue down this path to UBI, we stop evolving.
Many companies were born out of necessity during times of economic crisis. People were forced to become creative and solve real problems. But if we start paying people to not work, all the innovation that America is known for will stop. There will be no reason to solve problems if we rely on the government to solve our problems.
Don’t Rely on the Government
Rich dad often said, “The government tries to solve the problem of poor people by giving them money. Giving poor people money only creates more poor people.”
He also often said, “If we don’t improve our children’s financial education, they will not be able to solve the financial problems we have passed forward. If we do not solve these problems, the American Empire will come to an end. It’s up to your generation to solve the problem before this happens.”
I recommend we begin solving it rather than pushing the problem forward. The problem is too big to be pushed forward anymore.
In order to start solving the problem for yourself, is to get to a point that you don’t need a paycheck or a stimulus check. Become an entrepreneur.
If you want to find true financial security or even become financially rich, you must play your own game. Don’t play the game of someone else.
Editor, Rich Dad Poor Dad Daily