How useful is citizen income?

Dusseldorf According to Labor Minister Hubertus Heil, the planned citizens’ benefit will be “the biggest social reform in 20 years”. But in order for the citizen’s income to come into force, the Bundesrat also needs the consent of the federal states with Union participation. And they still see some need for change.

Similar opinions can also be found in the letters from Handelsblatt readers on this topic: “The basic income in its current form creates the wrong incentives,” writes one reader. According to one reader, performance is no longer worthwhile for the hard-working when others receive so much money for doing nothing. And especially with a view to the prevailing labor shortage, another reader takes a critical view of citizen income. Another reader says: “Challenging and promoting are the prerequisites of our economic system.”

Other readers are wondering whether a reform is necessary at all: “Wasn’t Hartz IV a success?” says one reader. Both the economy and the unemployment rate had developed well under Hartz IV. Rather, there should be a pension and health insurance reform, thinks another reader.

In the letters from the Handelsblatt readership, however, there are also a few who are in favor of citizen income. “Finally away from the negative image of Hartz IV,” writes a reader. According to the reader, there are always idlers and tricksters, and the citizens’ income will not lead to an increase here. In addition, the reform is a strengthening of social peace. “Social inequality drives voters to undemocratic extremes and promotes a rejection of value creation,” says another reader.
We have put together a selection for you from the letters from the Handelsblatt readers.

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A completely wrong signal

“In my opinion, the basic income in the form it is now planned sends the wrong signal, especially for the younger generation. The increase in the standard rate and the largely abolition of sanctions mean that work, especially in the low-wage sector, is simply no longer worthwhile.

Everyone knows someone who can handle Hartz IV quite well because they have a secure income and don’t have to worry about additional costs, especially expensive energy. All of this is made much easier by the new citizens’ income.

Everyone wonders why nobody wants to do simple and low-paid jobs anymore, but why would anyone do this? You can’t even blame the young people for saying ‘I’d rather go to the office’, because there’s no incentive at all to work.”
Herbert Neumeyer

An improvement in social peace

“The citizens’ income is a possible approach to solving one of the biggest and most pressing problems (besides climate change): improving social peace as the basis for everything! Social inequality drives voters to undemocratic extremes and encourages a rejection of value creation.

Politicians must finally be courageous again, overcome the lobbyists and oblige the really wealthy to make a contribution that has a major impact through low taxes for this group, in order not to rob middle incomes even more. Higher tax revenues must be invested in infrastructure and education, then at some point we will have everything that investments really need: not the lowest taxes, but security, stability, functioning systems and workers.”
Carsten Waiter

Superfluous as a goiter

“Never change a running system. The Hartz IV system has proven itself and does not require any reform. Citizens’ money is as superfluous as a goiter. Too expensive and ineffective.

The only reforms that are really necessary for Germany’s future and are overdue are a fundamental pension reform (inclusion of civil servants, the self-employed and higher earners, payment without limit according to income level, but payment capped) and health insurance reform (combination of statutory and private health insurance). . Unfortunately, no government dares to do that.”
Jurgen Wachholz

A negative income tax would be more innovative

“The basic income in its current form creates the wrong incentives. It is attractive for low earners to work less or not at all. The concept of spare wealth is correct, the concept of spare time is not.

Hubertus Heil would have been innovative if he had adopted the negative income tax concept formulated by Milton Friedman in the 1950s. This concept makes staying at home uninteresting, especially for low earners. In addition, undeclared work would suddenly become unattractive.”
Benedict Laackman

>> Read also: Traffic lights and countries continue to argue about citizen money – There is also criticism of the housing benefit reform

Challenge and encourage

“’Challenging and promoting’ are the prerequisites of our economic system. Anyone who gives up this principle is leaving the successful social market economy that brings us into such a comfortable discussion in the first place. Other economies have very different problems.”
Rainer Gerke

The first step to an unconditional basic income

“For me, citizen’s income is the first step towards an unconditional basic income. I’m not sure there are still enough incentives to get people into jobs. I am critical of the introduction due to the prevailing labor shortage.”
Andrew Danger

“Weak” is simply abolished

“The planned increase in the SGB 2 salary is not a citizen’s income. The increase in payments dubbed citizen income, the massive softening of the so-called protective assets and the suspension of measures contradict the actual underlying principle of solidarity: the strong stand up for the weak – ‘weak’ is simply abolished.

A further reduction in personal responsibility through further fantasies of omnipotence that further inflating state benefits through redistribution will ensure more justice is particularly fatal.”
Thorsten Leplow

Better pay and less taxes

“Yes, it would make sense to have better pay for work and fewer taxes, for example tax exemption up to an income of 15,000 euros per year, then you don’t need citizen benefit or Hartz IV.

And many officials in the respective state offices could be eliminated or engaged in sensible and profitable work.”
Karl Kienzel

Where’s the incentive?

“If the gap between those who receive citizen benefit with all allowances and those who work, including supplements such as housing benefit et cetera, is only a few hundred euros, for example 600 euros, why should someone work 150 hours a month for that?

Irrespective of this, you can still have a mini-job for 520 euros with citizen money, of which 165 euros are also tax-free.

Where is the incentive to work 150 hours or more a month regularly?”
Gerhard Romen

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Not even well intentioned

“The law is not even well intentioned. Because it completely misses the point of promoting. And performance is no longer worthwhile for the diligent when the others receive so much money for doing nothing. And if the limit of the protective assets is then raised, well, great – but for saving with the help of the social network.

Unfortunately, the traffic light is in the permanent election campaign with its anti-social gifts. – And how high was the majority of the SPD in the federal elections again?”
Ulrike Wirtz

Finally away from the negative image of Hartz IV

“I think the citizen’s income is good; Finally away from the negative image of Hartz IV. There were and always are lazybones and tricksters. I don’t think citizen income will increase the numbers of this species.”
Klaus Harke

Towards the state that provides food and is responsible for everything

“With this topic, it is swept under the carpet that the draft – even in the revised form – further cements a wrong change to the state that provides food and is responsible for everything. There is a total lack of incentive to fill one of the many vacancies.

We need incentives to work, which must be more rewarding. If more performance through more work falls almost completely victim to taxes and social security contributions, those willing to perform are further demotivated.

It must also be possible to generate the necessary social benefits from the state in the future.”
Hans Michelberger

Wasn’t Hartz IV a success?

“Well-meaning? Well done?

I am more concerned with the purpose of this reform. Wasn’t Hartz IV a success? Both the economy and the unemployment rate have developed well under Hartz IV – hard work should be rewarded and Hartz IV provides the right incentives.”
Jochen Jorzik

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More: Last week, Handelsblatt readers debated the Twitter takeover and whether Elon Musk is becoming too powerful as a result.

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