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Andrew Yang: start-up expert aiming for the US presidency // wants to give everyone $1,000 a month

Discussion in 'The NF Café' started by Son of Goku, Dec 3, 2018.

  1. Son of Goku Doesn't need a Custom Title

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    Andrew Yang: start-up expert aiming for the US presidency

    By: 16/11/2018

    Yang: a compelling candidate for the Democrats?

    Andrew Yang cut his teeth in the dotcom bubble before establishing a US-wide business. Now he wants to lead his country and introduce a “freedom dividend”. Jane Lewis reports.


    Among the many candidates jostling for the Democratic presidential nomination in 2020, Andrew Yang stands out. The New York entrepreneur wants to guarantee every adult American $1,000 a month, “no strings attached” and apparently in perpetuity. The government “has plenty of resources, they’re just not being distributed to enough people right now”, he told CNBC earlier this year when outlining his plan to introduce a universal basic income – or “the Freedom Dividend” as he calls it. Yang, 43, is convinced that it would be “the greatest catalyst for arts, entrepreneurship and creativity” on record. “It would take people from a constant mindset of scarcity to a mindset of assured survival and possibility”, he wrote on Reddit last spring.

    The right credentials

    The idea of a universal basic income has gained new momentum because of the potentially devastating impact robots and self-driving vehicles could have on jobs, says The New York Times. Critics dismiss Yang’s predictions of “robot apocalypse” as doom-mongering and his campaign (slogan: “Humanity First”) as “a futurist vanity stunt”. They also argue that the cost – around $2trn a year, or roughly half the current federal budget – is prohibitive. Yang counters that the plan could easily be funded by slapping a 10% value-added tax on companies “benefiting most from automation”. He argues that he is just the man to “sell the idea in Washington” by framing it as “a pro-business policy”.
    A well-connected “fast-talking extrovert”, Yang certainly has the right entrepreneurial credentials. Born in 1975 in Schenectady, New York, to Taiwanese immigrants, his parents were both high-achievers. His father, who worked as a physicist for IBM and GE, produced 69 patents over the course of his career. Yang enjoyed an upmarket education at Phillips Exeter Academy and Brown University before graduating from Columbia Law School. In the late 1990s, he left his job at a law firm to focus on tech. Having cut his teeth on an internet start-up “that failed during the first dotcom bust” Yang netted “a modest fortune” selling a tutoring business he’d developed to Kaplan in 2009. But the move that put him on the map – and gave him “the political bug” – was starting Venture for America (VFA) in 2011, with the aim of connecting recent college graduates with start-up businesses. The specific plan, as outlined in his book, Smart People Should Build Things, was to “distribute talent around the country”.

    National success

    Over the next few years Yang criss-crossed the country and VFA grew fast: by 2017, its initial $200,000 annual budget had mushroomed to $6m. By the time he stepped down as CEO in 2017, the organisation had raised
    over $40m and kickstarted some 29 businesses. Yang argues that his travels, particularly through ailing midwestern cities, made him uniquely placed to spot the connection between the rise of workplace automation and the growth of anti-establishment popularism.
    But the programme’s success also sharpened his ambitions, says Entrepreneur. “I started Venture for America with nothing but an idea,” he notes. That has given him the confidence to face down those who deem his presidential campaign a “longer-than-long shot”. For a party clearly in need of an injection of young blood, says The New York Times, he could become a compelling candidate.



    ______________________________________




    This 43-year-old running for president in 2020 wants to give everyone $1,000 a month in free cash


    11:24 AM ET Wed, 11 April 2018

    Andrew Yang presidential election campaign website media download
    Andrew Yang


















    Entrepreneur Andrew Yang has a big goal for a relatively unknown business person: to reach the White House. And he's aiming to get there by selling America on the idea that all citizens, ages 18-64, should get a check for $1,000 every month, no strings attached, from the U.S. government.

    Yang, 43, who was born in upstate New York in 1975, will be running as a Democrat, according to his campaign website.

    "People who think the antidote to Donald Trump is a boring generic Democrat missed the point. He is a sign of massive institutional failure. On both sides," Yang said on Reddit on April 2.
    A universal basic income (UBI) payment, which Yang calls "the Freedom Dividend," is one of his major policies.

    "The most direct and concrete way for the government to improve your life is to send you a check for $1,000 every month and let you spend it in whatever manner will benefit you the most," Yang writes on his campaign website.

    The government has "plenty of resources, they're just not being distributed to enough people right now," he says.

    Yang, founder of business fellowship program Venture for America and author of "The War on Normal People: The Truth About America's Disappearing Jobs and Why Universal Basic Income Is Our Future," believes a cash handout will improve the mental well being of Americans and encourage entrepreneurship.

    "It is impossible to overstate the positive impact of $1k a month on households around the country. It would take people from a constant mindset of scarcity to a mindset of assured survival and possibility. It would transform our society in myriad positive ways by taking the boot off of people's throats," wrote Yang on Reddit in March.

    "I've worked with hundreds of entrepreneurs and most have an incredible mindset of abundance and possibility. A UBI would be the greatest catalyst for arts, entrepreneurship and creativity that we have ever seen," he said.

    Facebook CEO Mark Zuckerberg made a similar argument in his Harvard commencement speech in May. "Now it's our time to define a new social contract for our generation. We should explore ideas like universal basic income to give everyone a cushion to try new things," the billionaire said.

    Why $1,000 a month?
    Yang settled on the level of $1,000 a month for several reasons, he tells CNBC Make It: First, $1,000 a month was recommended by former Service Employees International Union president Andy Stern in his book, "Raising the Floor: How a Universal Basic Income Can Renew Our Economy and Rebuild the American Dream." And $12,000 a year brings an individual close to the U.S. poverty line, says Yang, which is $12,752 per person per year for those under the age of 65, according to the United States Census Bureau. Plus, a $1,000-a-month UBI has been studied and modeled by The Roosevelt Institute, says Yang. (It could grow the U.S. economy by 12.56 percent after eight years if paid for by increasing the debt, says the left-leaning institute's report released in August.)


    Finally, $1,000 is low enough to help assuage a common criticism of UBI: that it will discourage people from working.

    "It's virtually impossible to do more than just survive on a thousand dollars a month around the country," Yang tells CNBC Make It. "It would make a huge difference for families, but it's not a level that would lead one not to work."

    Automation is driving an urgent need for cash handouts
    UBI is necessary, according to Yang, because automation is replacing human workers in manufacturing and threatens jobs in retail, food service and preparation, customer service, transportation, insurance, accounting, medicine and law, he says in a campaign video.

    Indeed, some reports are concerning. By 2030, 75 million workers around the globe will need to change occupational category due to automation, according to a December 2017 study by McKinsey Global Institute, and 400 million jobs could be potentially displaced. These estimates are based on analysis of 46 countries that include 90 percent of global gross domestic product and a mid level pace of adoption of automation.

    A report published in March by the Organization for Economic Co-operation and Development (OECD) predicts 14 percent of the jobs measured in 32 OECD countries, or about 66 million jobs, are "highly automatable," which the report defines as having a probability of being automated over 70 percent over the next 15 to 20 years. Another 32 percent have a risk of being automated at 50 to 70 percent, the report says.

    Yang says he is uniquely positioned to see both sides of the automation story in the United States thanks to his work with Venture for America.

    "I'm usually highly exposed, where most people in my line of work have not spent six years marching around Michigan, Ohio, Pennsylvania, like Missouri," Yang tells CNBC Make It. "Most people haven't spent six and a half years working in these regions with the businesses and entrepreneurs there. And most people probably do not directly know people in Silicon Valley who are working on automating away millions of jobs and know it."

    Paying for UBI
    Under Yang's plan, the UBI payment would be funded by a "new tax on the companies that are benefiting most from automation," he says in a video on his campaign's website.
    That tax, he explains, would be a value-added tax (VAT) of 10 percent on goods and services a company produces. (Europe already has a VAT, with rates ranging from 17 percent in Luxembourg to 27 percent in Hungary as of Jan.1, 2018, according to the European Commission.)

    The idea of a VAT will become ever more important, according to Yang's campaign, "because you cannot collect income tax from robots or software."

    "Because our economy is so vast, this would generate between $700 and $800 billion in revenue," said Yang on Reddit.

    Yang points to a 2012 estimate published by Bloomberg that a 10 percent VAT would raise $750 billion. And a 2010 estimate by Eric Toder and Joseph Rosenberg of the Washington, DC-based Tax Policy Center, predicted the United States could have raised $356 billion in 2012 through a 5 percent VAT. At the time, that $356 billion in VAT was equal to 2.3 percent of GDP. Yang doubled the VAT in this estimate for a 10 percent tax, which equals $712 billion.
    Eric Toder tells CNBC Make It a 10 percent VAT in the United States could raise anywhere from $500 billion to $1 trillion, depending on how broadly the tax is applied.

    "I made a rough calculation that a 10 percent VAT with the same coverage as the average in other countries would raise about $500 billion per year," says Toder. A typical VAT is levied on 50 percent of total spending on consumption in a country, according to Toder (who references "The VAT Reader: What a Federal Consumption Tax Would Mean for America" published in 2011).
    Under Yang's plan, current welfare and social program beneficiaries in the United States would be able to keep their existing benefits if they prefer.

    As for getting a VAT passed, Yang says, "If I become president then there will likely will have been a blue wave, and so we would have a majority Democratic Congress." But he also sees evidence that Republicans can support a cash handout to the North: "The only state right now with a universal basic income equivalent is Alaska and that's a deep red state."

    Indeed, Alaska has a state-wide version of UBI, and has since 1982, when the state distributed the Alaska Permanent Fund check. The goal was to share the oil riches with future generations. Today, Alaskan residents still get cash handouts from the fund, called the Permanent Fund Dividend. When Zuckerberg visited Alaska in the summer of 2017 as part of his "Year of Travel challenge," the Facebook executive observed the state's cash handout program "provides some good lessons for the rest of the country."


    And Yang is not alone in talking about universal basic income.

    In March, UBI was adopted as part of the 2018 official party platform of the California Democratic Party at the 2018 California Democrats State Convention, which was published February 25. Silicon Valley start-up accelerator Y Combinator has already conducted a one-year "feasibility study" in Oakland, California, to prepare for a larger study of universal basic income. And in October, Stockton, California's 27-year-old mayor, Michael Tubbs, announced a universal basic income project for his city, which declared bankruptcy in 2013.

    As a relative unkown with just $250,000 raised (including $1,000 from Tony Hsieh of Zappos) and no political experience, Yang is fighting an uphill battle. A candidate must go through a process of state primaries and caucuses collecting delegate votes leading up to the party's national convention just to be the nominee. And each state has its own uniquely complex rules and processes for getting on the primary ballot.

    But fundamentally, says Yang, he's running for President because he sees a problem that needs to be solved. "I'm an entrepreneur ... so you want to try and solve problems. The problem I saw was that we're going to automate away millions of jobs ... so then the question is how can you realistically solve for that?" Yang tells CNBC Make It. "There's a very limited range of things you can do if you're genuinely trying to solve that problem, and so that's how I arrived at running for president."

    Prior to running for President, Yang launched Venture for America in July 2011, a New York City-headquartered organization that trains entrepreneurs in a two-year fellowship program. In recognition of his work with Venture for America, Yang was named a Champion of Change in 2012 and a Presidential Ambassador for Global Entrepreneurship in 2015 by the Obama White House. Yang was previously the CEO of the test-prep education company Manhattan GMAT, which industry leader Kaplan bought in 2009. (Kaplan declined to disclose to CNBC Make It the price at which it acquired the company.)

     
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  2. Son of Goku Doesn't need a Custom Title

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    I don't know anything about his foreign policy yet, but so far so great.
     
  3. Pliskin Well-Known Member

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    I love how in the U.S. you just add freedom in front of stuff to signal that it is good.

    Freedom fries!
     
  4. Son of Goku Doesn't need a Custom Title

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    It's fitting though. It does give you freedom.
     
  5. Son of Goku Doesn't need a Custom Title

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    Dumbass from Fox has no idea what he's talking about:
     
  6. kluang The Cavalry's Here

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    Freedom Lies
     
  7. Son of Goku Doesn't need a Custom Title

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    Hm, could this be the next guy? :hm
     
  8. Son of Goku Doesn't need a Custom Title

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    Tulsi Gabbard would still be my number one choice right now. She hasn't announced yet, but she is writing a book...
     
  9. epyoncloud Well-Known Member

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    The problem is he is chinese/taiwanese, the biggest enemy of USA.

    If he is white or russian troll, he has better chance.
     
    Last edited: Dec 4, 2018
  10. makeoutparadise I will have my revenge

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    I will vote for chairman Yang
     
  11. epyoncloud Well-Known Member

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    I still think him being white has more chance.
     
  12. Hozukimaru &#32

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    I took a look at his platform, he's got some good policies and some...not so good policies.

    Concerning the UBI, mainstream economists prefer targeted anti-poverty programs. Sure, there is some bureaucracy, but if you're going to spend say $1 trillion in such programs is it preferable to split it evenly among the population (so the poorest 10% will only get 10% of the aid) or is it preferable to target it to the poorest 50% or 40% or 30% of the population? Sure, there is some overhead cost in picking those eligible, but for sure the overhead cost isn't going to be anywhere near 50%. So the poorest would be definitely better off under a targeted scheme.

    That being said, consolidating and unifying the anti-poverty programs to reduce bureaucracy leading to a single means-tested welfare program would be a more realistic policy.

    After all the main performance indicator of welfare policies is...how many people they lift from poverty.


    He's got some good stuff as I said but also some loony things. Including supporting a system of "social currency" (China...) and fixing the "media fragmentation issue":



    So yea, Our Great Savior and Leader Chairman Yang isn't walking this lol. On the positive side: police body cameras, pathway to citizenship, marijuana legalization, relax zoning laws, pro-nuclear energy etc.

    (And he's also got some interesting stuff like saying all laws should have something of an "expiration date" and then congress should review if it wants to reintroduce them. Sounds kinda cool and experimental.)
     
  13. Son of Goku Doesn't need a Custom Title

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    I don't think you see the fundumental difference between a 'handout for the poor' and a 'dividend' for every (adult) member of society.
    Receiving a handout, like from a welfare program, is demeaning. You have to file for it, prove that you're poor enough. It eats away your self-worth. And you can't go find a job to earn some extra bucks without risk losing the handout, partly or entirely, so you're incentivised to stay home.
    With this dividend, or UBI, you receive your share of your country's economy. You can use it as your financial cushion while your building a business. You may be able to afford to quit a job that makes you sick and take the time to look or qualify for a better one. A UBI is guaranteed to reduce health costs, due to all the financial and job related stress that people will be unburdened of - stress being the number one cause of illness.
    Also, wealthy people who receive the 1000 bucks are free to donate the money. Hell, every NGO, public school, or cause in need of money will go after wealthy people and try to guilt them into donating some or all of their $1000 for good causes. And many will feel obligded to donate, certainly more than they are now, which in turn will improve society as a whole.
     
    Last edited: Dec 4, 2018
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  14. Hozukimaru &#32

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    Maybe you don't have to file for it but it's still a handout and an income transfer from the rich to the poor. The fact that Bill Gates or Trump or Elon Musk (I know, the first two are too old for UBI) will also get it doesn't change the fact that they pay much more in taxes, while others are net receivers.

    I agree that it's not as much a disincentive for work as usual welfare programs are however, for the reason you describe. This is a good argument, I can't say much to that.

    Sure, money is good.

    Okay, although the amount of people who are so rich that don't really care about an extra $12,000 a year isn't that high. So the extra money that would be donated isn't that much. Those that do, well they're probably donating much more already.


    Under UBI some will be better off and some worse off. Simulations show that if you try to replace the current social net with a UBI, you end up with a very small amount per person that could end up putting more people into poverty than helping escape.

    And a VAT isn't the most progressive way to tax the funding gap that would be created, it's not a progressive tax at all by definition.

    Would someone who is out of the workforce or is unemployed or is low-paid be better off under a UBI? They'd have a higher incentive to work to increase their income. But if they can't do that, they end up getting the UBI (and since they were getting benefits before but these got replaced, this isn't making a huge difference in their overall incomes) but paying more taxes (through VAT) to finance the welfare of people who have higher incomes.
     
  15. Skaddix Well-Known Member

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    Hmm I am dubious on that sure in Theory Elon Musk or Bill Gates should pay more in taxes percentage wise but do they actually? Given how good rich are at hiding their money and how the capital gains tax is pretty low I am dubious on that.
     
  16. EJ T A H I T I

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    So great to see these kinds of policies being proposed and gaining traction to the point that people are campaigning on them. If these people are elected within positions, I hope they push forward with these policy ideas without caving on them.
     
  17. Pliskin Well-Known Member

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    True in general, though due to the weirdness of the winner takes all system, I'd always be a little scarred these outsiders run 3rd party when loosing primaries.

    Its really sad that left and right, an election can most easily be sunk by a strong 3rd party candidate on that wing.
     
  18. mr_shadow Minister of State Security Moderator

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    I'm gonna call him "The Manchurian Candidate." :maybe
     
  19. Drake WORK MAKES YOU FREE

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    This is literal Marxism. Not that I disagree with his sentiments in theory, but that's what it is. Good luck convincing Congress.

    Not a bad idea, actually, but the economy is not in a position where automation is so prevalent that this becomes a necessity or even the right thing to do IMO. I would definitely support something like this in the future if automation ever gets to that point, but for now, I am against it. He sounds very forward-thinking, which is probably a negative in this case.
     
  20. Hozukimaru &#32

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    If it's about my post, I was talking in absolute numbers. Below a certain income people are net recipients of government help. It's likely that a middle-income individual pays more of his income percentage-wise to the government, especially if we include indirect taxes in the mix. But multi-billionaires still pay millions into the system even if their effective taxation is lower.
     
  21. Skaddix Well-Known Member

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    Incidentally what is the Russian Version called? The Comrade?

    We already have Trump as Putin's Puppet.

    So in America we already use to our President's as foreign puppets. Yang will be nothing new especially if god forbid we get two terms of Trump.
     
  22. mr_shadow Minister of State Security Moderator

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    Most likely it'd only be a redux of "Obama is a Muslim Indonesian Kenyan."

    While it was an annoyance, it wasn't more of an inconvenience than that he had to make sure to be seen doing Christian, American things like having a hamburger on his way to church.
     
  23. EJ T A H I T I

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    That would suck. Hopefully, if there is someone pushing progressive policies, the public will widely push for the candidate that has the best platform regardless if there are others that might have similar policies they might be in favor of.
     
  24. Son of Goku Doesn't need a Custom Title

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    Do we though? :hm
     
  25. President Raiden

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    It's going to be hard to fight for that idea; I think Joe Biden came out swinging against it a few months ago. This is really interesting nonetheless. I find his perspective on dismissing concerns about robots really interesting.
     
  26. Pliskin Well-Known Member

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    Probably a real clincher timing thing. Introduce Freedom Dividend to soon before big AI kicks all office jobs off the market and people will complain about Marxism, miss the point and introduce Freedom Liberty Dividend too late and boom, pitchforks and riots. Then you have the global anxiety of being the first to introduce Freedom Liberty Patriot Dividend and everyone waiting for another country to be the lab rat first.

    freedom
     
  27. sworder    

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    Not gonna work because people won't vote for it. This actually justifies the people screaming socialism because this is not UBI, this is just another welfare program.

    UBI works because it's literally universal, for everyone. There is no reason for someone to be against it because everyone is getting the exact amount of money.

    UBI is perfect as it is. Let's keep it that way.
     
  28. Skaddix Well-Known Member

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    UBI does do something though gets rid of any welfare bias.
     
  29. EJ T A H I T I

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    we are going to need this in the future regardless anyways, reforms should already be considered to brace for the loss of jobs through automation
     
  30. Sloth Enchanting your damage.

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    Sorta relevant to the topic at hand.
     
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