Switzerland is voting on giving every legal resident almost $3000 per month, whether they are working or not. You only have to be alive to collect your monthly income of $2800.
rt.com/business/swiss-vote-universal-wage-420/
Sounds like a great idea.
But to put it in context, though, we need to look at a few things with Switzerland:
First of all, Switzerland has no
legal minimum wage (letting the topic be a matter of negotiation between employer and employee). Yet the average Swiss salary is around CHF 6,000 per month (USD 6700 per month). And, guess what: the unemployment rate for Switzerland
was 2.9% in 2012…compare that to a
U-6 unemployment rate of 14.4% in the US in 2012.
Secondly, the Swiss tightly control immigration. If you’re wealthy and are willing / able to contribute hundreds of thousands of francs to their economy, you’re more than welcome. Otherwise, you’d better have a job there before going. Otherwise, not so much. They don’t even want refugees from EU countries (Switzerland is not an EU country, remember), much less from outside the EU. Therefore, we don’t see a bunch of Swiss displaced by foreigners at work.
Third, it appears that their social insurance is actually set up to be insurance. I’m no expert (so if we have any Swiss people reading this, please tell me where I’m wrong), but it appears that you pay into an account that is actually yours. A lot different than how social security is run here.
So this “minimum income” thing proposed in Switzerland sounds almost like some equivalent to the Alaska Permanent Fund (where each resident of Alaska is guaranteed a portion of the revenue gained from their oil reserves) rather than the redistributive social welfare that we have in this country (take from one and give to another).
There is a lot we can learn from the Swiss. And if our country had 2.9% unemployment with an average salary of USD 6,700 per month…set by the agreement between employer and employee rather than by government mandate, then the situation in this country would be a whole lot different as well.