“Naive young people have believed the promises of economic utopians and now want to nationalize public monopolies — transport, energy, water — impose taxes on millionaires, and introduce a ‘basic’ income detached from work,” one Czech commentator wrote a few days ago about the situation in Britain.
So let us take this step by step.
During the Thatcher-Klaus years, many people — myself included — believed that if the state gave up public monopolies such as railways, energy, and water services and sold them to corporations, the result would be cheaper products and better services. The only real outcome was staggering price increases, while the quality of service failed to improve. So who is the utopian? The person still waiting for benefits that have not appeared after thirty years, or the person trying to repair the damage?
During the Thatcher-Klaus years, many people — myself included — believed that radically lowering taxes on executive bonuses would raise living standards and bring prosperity to the country. In reality, it produced a surge of astonishingly irresponsible managerial risk-taking, factory closures, declining living standards, and a deterioration in education. So who is the utopian? The person still waiting for benefits that have not appeared after thirty years, or the person trying to restore taxes to their previous levels?
During the Thatcher-Klaus years, many people — myself included — believed that drastic cuts to social spending would increase national wealth, accelerate economic growth, and improve the management of public finances. In reality, it brought impoverishment, stagnation, and rising public debt. So who is the utopian? The person still waiting for benefits that have not appeared after thirty years, or the person trying to rebuild the welfare state?
That said, it is true that an unconditional basic income is a foolish idea.