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Andrew Yang wants to tax Silicon Valley to fund universal basic income plan
The 2020 presidential candidate said companies like Amazon should "pay their fair share" as automation begins to displace human workers.
- Andrew Yang is a 2020 Democratic presidential candidate whose key campaign promise is to give every American adult $12,000, regardless of their current income.
- Yang said his universal basic income plan could be funded by a value-added tax levied on tech companies.
- Yang's proposal has no shortage of critics, but he maintains that his UBI program would grow the economy by trillions of dollars.
Andrew Yang, the 44-year-old 2020 Democratic presidential candidate, says the U.S. economy needs to evolve into its next form, noting that automation and technology, such as driverless cars, are expected to displace millions of workers in coming years. To Yang, that new economy includes giving a $1,000 check every month to every American adult.
The lawyer-turned-tech executive outlined his form of a universal basic income program to George Stephanopoulos on ABC's This Week on Sunday.
"We have to solve the problems that got Donald Trump elected in 2016," Yang told ABC News Chief Anchor George Stephanopoulos on This Week Sunday. "And to me the main driver of his victory was that we automated away 4 million manufacturing jobs in Michigan, Ohio, Pennsylvania, Wisconsin, the swing states he needed to win."
Yang, who's earned a relatively small but dedicated base of #YangGang supporters, pointed to the Alaska Permanent Fund as proof that UBI programs can work in the U.S.
"Everyone in the state gets between $1,000 and $2,000 a year from oil money," Yang said. "And because it's oil money, there's no stigma attached, it's not a rich to poor transfer, and it's wildly popular in a conservative state. [...] So what we have to do is we make it a right of citizenship for all Americans and do what they are doing in Alaska with oil money, with technology money for everyone around the country."
Yang said he'd fund his UBI program, dubbed the "Freedom Dividend," with a value-added tax.
"What we have to do is, we have to join every other advanced economy and have a value added tax that would fall on the Amazons of the world, and because our economy is now so vast at $20 trillion, up $5 trillion in the last 12 years, a value added tax at even half the European level would generate over $800 billion in new revenue," Yang told Stephanopoulos.
Haha you all are the best. #yanggang https://t.co/Nvl8CexGpk— Andrew Yang (@Andrew Yang)1554690173.0
What's a value-added tax?
A value-added tax is typically defined as a tax on the amount by which the value of a product has been increased at each stage of the production chain. Here's a simpler explanation from tax expert William Gale taken from an interview he gave to The Atlantic:
"The example I always use is a loaf of bread you buy in a store for a buck — so you have a farmer, a baker, and a supermarket along the production chain. Let's put the VAT at 10 percent.
1) The farmer grows the wheat and sells it to the baker for 20 cents. The VAT is 2 cents. The baker pays the farmer 22 cents, and the farmer sends 2 cents in VAT to the government.
2) The baker makes a loaf and sells it to the supermarket for 60 cents. The VAT is 6 cents. Now the supermarket pays the baker 66 cents, of which 6 is VAT. The baker sends the government 4 cents -- he pays 6 cents in VAT but receives a two cent credit from the government.
3) The store sells the loaf to me for a dollar. I pay $1.10. The store sends the government 4 cents total - the 10 cents it collected in VAT on its sales, minus the 6 cents it paid to the baker in VAT, which it gets back in a credit. In total, the government gets 2 cents from the farmer, 4 cents from baker, 4 cents from the store. That's 10 cents on a final sale of a dollar — for a 10 percent VAT."
Why tax Silicon Valley?
The big winners of new technology are going to be companies like Amazon, not the American people, according to Yang. That's a problem, considering the retail giant paid nothing in federal taxes last year.
"Is it Amazon's fault that they paid zero in taxes?" Yang told MSNBC's Morning Joe in March. "No, it's our fault."
Amazon recently noted that it's set to pay $756 million in state and international taxes this year, and that it "pays all the taxes we are required to pay in the U.S. and every country where we operate."
As companies such as Facebook, Google, Uber, and Amazon benefit from A.I., millions of Americans are expected to lose their jobs. Yang said a third of the country will be at risk of permanent unemployment. Others in the tech industry paint a similarly stark picture, like Taiwanese venture capitalist and A.I. expert Kai-Fu Lee, who in January told CBS News' Scott Pelley that he believes 40 percent of the world's jobs will be replaced by robots that can automate blue-collar and even some white-collar jobs.
"Chauffeurs, truck drivers, anyone who does driving for a living — their jobs will be disrupted more in the 15–25 year time frame," he said. "Many jobs that seem a little bit complex, chef, waiter, a lot of things will become automated."
With these job losses looming over the horizon, Yang thinks Silicon Valley should "pay their fair share," as he told MSNBC.
How a universal basic income would affect Americans
Yang said his program would offer not only a reprieve for displaced workers, but also space for people to pursue more meaningful work.
"If you have a little bit more freedom from scarcity, then you can start making moves towards the sort of work that you want for yourself, that you value, that you find fulfilling and exciting," Yang said in an interview with Ben Shapiro.
Yang argues that removing financial pressure from Americans would allow more people to experiment with entrepreneurism, potentially leading to the creation of companies that create enormous value for the economy.
"You're going to end up creating hundreds of thousands of new entrepreneurs, guaranteed, if you have something like the Freedom Dividend, because there are so many Americans who would love to take a shot," Yang said in an interview with Kmele Foster of The Fifth Column podcast.
"Now, you could argue that, 'Hey, maybe some of these people should not be being entrepreneurs [...]' But you'd wind up with a really significant number of diamonds in the rough, and the way our system works is that a number of diamonds could potentially create so much value that it doesn't really matter what happens with the five people next to them. So, there would be, to me, if anything, an unlocking of human capital that would end up enhancing our system's dynamism."
Of course, Yang's plan has many critics. Some say the math behind the Freedom Dividend doesn't add up; others argue that giving Americans a UBI would make them lazy. It's hard to predict what would happen, but one oft-cited UBI study conducted on the Alaska Permanent Fund offers a clue: The results showed no real impact on full-time employment rates, while part-time employment increased by 17 percent.
"It is reasonable to expect an unconditional cash transfer, such as a universal income, to decrease employment," the authors said. "A key concern with a universal basic income is that it could discourage people from working, but our research shows that the possible reductions in employment seem to be offset by increases in spending that, in turn, increase the demand for more workers."
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Can an orgasm a day really keep the doctor away?
- Achieving orgasm through masturbation provides a rush of feel-good hormones (such as dopamine, serotonin and oxytocin) and can re-balance our levels of cortisol (a stress-inducing hormone). This helps our immune system function at a higher level.
- The surge in "feel-good" hormones also promotes a more relaxed and calm state of being, making it easier to achieve restful sleep, which is a critical part in maintaining a high-functioning immune system.
- Just as bad habits can slow your immune system, positive habits (such as a healthy sleep schedule and active sex life) can help boost your immune system which can prevent you from becoming sick.
How masturbation affects your brain...<p>Orgasms are a very common human phenomenon. The physical and mental health benefits have been researched frequently as a result, and yet, there is still so much to be learned about how our bodies and brains react to the chemicals and hormones released during and after experiencing this type of sexual release.</p><p>"The amount of speculation versus actual data on both the function and value of orgasm is remarkable" explains Julia Heiman, director of the <a href="https://kinseyinstitute.org/" target="_blank">Kinsey Institute for Research in Sex, Gender, and Reproduction</a>.</p><p>Masturbation causes a rush of <a href="https://www.webmd.com/mental-health/what-is-dopamine" target="_blank">dopamine</a>, which is a chemical that is associated with our ability to feel pleasure. Along with the rush of dopamine that is released during an orgasm, there is also a release of a hormone called <a href="https://www.livescience.com/42198-what-is-oxytocin.html" target="_blank">oxytocin</a>, which is commonly referred to as the "love hormone."<br></p><p>This concoction of chemicals does more than just boost our mood, it also can play a key role in decreasing stress and promoting relaxation. Oxytocin decreases <a href="https://www.webmd.com/a-to-z-guides/what-is-cortisol" target="_blank">cortisol</a>, which is a stress hormone that is usually present (in high volumes) during times of anxiety, fear, panic, or distress. </p><p>According to BDSM and fetish researcher <a href="https://www.psychologytoday.com/us/therapists/dr-gloria-brame-colbert-ga/278388" target="_blank">Dr. Gloria Brame</a>, an orgasm is the biggest non-drug induced blast of dopamine that we can experience. </p><p>By boosting the oxytocin and dopamine levels and subsequently decreasing our cortisol levels, the brain is placed in a more relaxed, euphoric, and calm state. </p>
Masturbation boosts your immune system and raises your white blood cell count.<p>How do those effects on the brain from reaching orgasm translate to boosting our immune system and making our body healthier?</p><p>The increase of oxytocin and dopamine that causes a decrease in cortisol levels can help boost our immune system because cortisol (well-known for being a stress-inducing hormone) actually helps maintain your immune system if released in small doses. </p><p>According to <a href="https://www.health24.com/Sex/Great-sex/incredible-health-benefits-to-masturbating-20181030-2" target="_blank">Dr. Jennifer Landa</a>, a hormone-therapy specialist, masturbation can produce the right kind of environment for a strengthened immune system to thrive. </p><p><a href="https://www.ncbi.nlm.nih.gov/pubmed/15316239" target="_blank">A study</a> conducted by the Department of Medical Psychology at the University Clinic of Essen (in Germany) showed similar results. A group of 11 volunteers were asked to participate in a study that would look at the effects of orgasm through masturbation on the white blood cell count and immune system.</p><p>During this experiment, the white blood cell count of each participant was analyzed through measures that were taken 5 minutes before and 45 minutes after reaching a self-induced orgasm. </p><p>The results confirmed that sexual arousal and orgasm increased the number of white blood cells, particularly the natural killer cells that help fight off infections. </p><p>The findings confirm that our immune system is positively affected by sexual arousal and self-induced orgasm and promote even more research into the positive impacts of sexual arousal and orgasm. </p>
Masturbation can ease and prevent pain, which allows you to achieve the restful sleep that helps your immune system stay strong and healthy.<p>The benefits of masturbation have long been debated, but the more research that is done on the topic the more we understand that there are many positive reactions that happen in our bodies and brains when we orgasm.</p><p>Orgasms can help prevent or mitigate pain, which boosts the immune system, preventing cold and flu symptoms. </p><p>According to neurologist and headache specialist Stefan Evers, about one in three patients experience relief from migraine attacks by experiencing sexual activity or orgasm. Evers and his team <a href="https://www.livescience.com/27642-sex-relieves-migraine-pain.html" target="_blank">conducted an experiment</a> with 800 migraine patients and 200 patients who suffered from cluster-headaches to see how their experiences with sexual activity impacted their pain levels. </p><p>The study showed that 60% of migraine sufferers experienced pain relief after participating in sexual activity that resulted in orgasm. Of the cluster-headache sufferers, about 50% said their headaches actually worsened after sexual arousal and orgasm. </p><p>Evers suggested in his findings that the people who did not experience pain relief from migraines of headaches during their sexual activity did not release as large amounts of endorphins as those who did experience pain relief. </p><p>According to <a href="https://www.sharecare.com/health/chronic-pain/chronic-pain-affect-immune-system" target="_blank">rheumatologist Dr. Harris McIlwain</a>, people who suffer from chronic pain have immune systems that are simply not functioning at full capacity - therefore, alleviating pain (through orgasm, as an example) can help boost the immune system. </p><p>Orgasms can also promote relaxation and make it easier to fall asleep. Serotonin, oxytocin, and norepinephrine are all hormones that are released during sexual arousal and orgasm, and all three are known for counteracting stress hormones and promoting relaxation, which makes it much easier for you to fall asleep.</p><p>There are <a href="https://www.ncbi.nlm.nih.gov/pubmed/1233384" target="_blank">several studies</a> showing that serotonin and norepinephrine help our body cycle through REM and deep non-REM sleeping cycles. During these sleep cycles, the immune system releases proteins called <a href="https://www.sleepfoundation.org/articles/how-sleep-affects-your-immunity" target="_blank"><span id="selection-marker-1" class="redactor-selection-marker"></span>cytokines<span id="selection-marker-2" class="redactor-selection-marker"></span></a>, which target infection and inflammation. This is a critical part of our immune response. Cytokines are both produced and released throughout our bodies while we sleep, which proves the importance of a good sleep schedule to a healthy immune system.</p>
Masturbation promotes a high-functioning immune system; a healthy immune system prevents cold and flu.<p>The immune system is a balanced network of cells and organs that work together to defend you against infections and diseases by stopped threats like bacteria and viruses from entering your system. While there are many things we need to do to keep our immune systems functioning at optimal levels, masturbation (or other means of achieving orgasm) has proven to have positive effects on the immune system as a whole.</p><p>Just as bad habits (such as an inconsistent sleep schedule or harmful chemicals in your body) can slow your immune system, positive habits (such as a healthy sleep schedule and active sex life) can help boost your immune system. </p>
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Credit: Virginia Tech