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Guaranteed income schemes (basic income, negative income tax) are economically sound policies because the makes it possible for low productivity workers to contribute without incentive traps. Politically they are relatively stable because everyone gets the same treatment and interests are aligned.

Appeal to humanity is not sound political approach to get things done. If the only argument is idealistic appeal humanity, poor will get only scraps. We should use mechanism design (reverse game theory) to design society where the interests of the majority are tied into the interests of the poor.

We here in the Nordic countries reduce poverty effectively using wealth transfers. The reason for this is not better morals or humanity. Instead we have created a wealth transfer system were majority of benefits go to the middle class and poverty is reduced because poor are part of the same system. When every kid below 10 is given certain amount of money, not just the poor, it becomes politically hard to cut that money because majority of people like free money.




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