“Newstart is a temporary payment”
Successive government have justified the rock-bottom rate of Newstart by saying it is designed as a ‘temporary payment’. Government after government declare that the Newstart payment is meant as a transitionary payment for those in between jobs. However, this is not true. In 2014, half a million people have been unemployed for longer than a year – 66% of the total number of unemployed people in Australia. This figure has doubled since the Great Financial Crisis of 2007-8
As a result of this sky-rocketing long-term unemployment, according to the Australian Council of Social Services, the average time spent on Newstart is 4 years! How does the government expect these people to survive for so long living below the poverty line?
This is why we need a universal basic income. Every citizen should be guaranteed a basic income that is well over the poverty line, that actually covers the cost of living. The ultimate aim of this guaranteed amount is GDP per capita, which would allow all Australians to live quite comfortably. Indeed with a GDP per capita of $86,000 it’s hard to believe that we have so few jobs available and that those who are employed are being paid so poorly!
What is wrong with a Targetted payment that is increased & not subject to “WorkFare” condtionality?
If you look closely at the funding proposals of UBI, often it is to be funded not by increased taxation of business, but by Consumption Tax. Thus workers are forced to no only unevenly carry the burden of a replacement to Social Security, they are giving money to the Rich. This is explicit in Andrew Yang’s proposal, and he also sells the policy by claiming the Minimum Wage won’t have to b increased.
Thus workers are not only giving money to the Rich as individuals, they are subsidizing them in not paying their workers a Living Wage.