European Parliament’s legal affairs committee wants to look into basic income in light of robots threat

European Parliament’s legal affairs committee wants to look into basic income in light of robots threat

The European Parliament will vote on a report calling on the European Commission and all EU member states to “seriously consider” basic income in order to address the economic consequences of automation and artificial intelligence.

On Thursday 12 January, European Parliament’s committee on Legal affairs (JURI) adopted a report on “Civil law rules on roboticswhich considers the legal and economic consequences of the rise of robots and artificial intelligence devices.

According to the report, since “robots, bots, androids and other manifestations of artificial intelligence (“AI”) seem poised to unleash a new industrial revolution, which is likely to leave no stratum of society untouched, it is vitally important for the legislature to consider all its implications. There are many tools claiming to be the best tool for machine learning and if these keep developing can artificial intelligence become a real threat to human job roles?

It reads further: “the development of robotics and AI may result in a large part of the work now done by humans being taken over by robots, so raising concerns about the future of employment and the viability of social security systems if the current basis of taxation is maintained, creating the potential for increased inequality in the distribution of wealth and influence”

To cope with those consequences, the report makes a strong call for basic income. “A general basic income should be seriously considered, and (the European Parliament) invites all Member States to do so.”

The resolution is based on a report prepared by the Working Group on Legal Questions Related to the Development of Robotics and Artificial Intelligence, established in January 2015.

This legislative initiative is however not legally binding. If adopted in February by the European Parliament’s full house, the EU Commission would be invited to present a legislative proposal but it can also refuse to do so.

The Commission is not entirely unaware about basic income. Last year, Social Affairs Commissioner Marianne Thyssen said she would follow with great interest the outcomes of the basic income experiments currently underway in Finland.

The rapporteur of the report, Socialist MEP Mady Delvaux, said she was satisfied that basic income was included by the JURI Committee at this stage.

However she expressed doubt that the idea would survive the plenary vote. In a statement published on the website of the Socialist and Democrats group at the European Parliament, the MEP explained:

“As social democrats, it is urgent that we look at new models to manage society in a world where robots do more and more of the work. One idea adopted in this report is to look at a universal basic income – where everyone would receive a wage from the government whether they are in work or not.”

Mady Delvaux MEP

Barb Jacobson, Chair of Unconditional Basic Income Europe said, “We are very pleased Mme Delvaux mentioned basic income in this report, and we hope that Parliament and the Commission will give it serious consideration along with rules about the use of robots. The benefits of automation should be enjoyed by all members of society, not just those companies which directly benefit from it.”

UBI-Europe urges European basic income supporters to get in touch with their MEPs to make sure this aspect of the report reaches the Commission.”

“Whether automation ends up destroying a larger proportion of jobs or not, however, incomes are already increasingly insecure, and in most parts of Europe wages have stagnated or fallen. While many member states are starting to take basic income seriously, the need is urgent. The EU could help lead the way with its own Eurodividend,” added Nicole Teke, Secretary of UBI-Europe.

The European Parliament is expected to vote on the final report on the week of February 13.


Pictures CC European Parliament

Interview: Telekom CEO Timotheus Höttges on Digitization and Basic Income

Interview: Telekom CEO Timotheus Höttges on Digitization and Basic Income

Timotheus Höttges, CEO of the multibillion dollar telecommunications company Deutsche Telekom AG, has previously expressed support of unconditional basic income. In December 2016, he again addressed the subject in an interview in the German business newspaper Handelsblatt.

 

In a recent interview with Handelsblatt, Telekom CEO Timotheus Höttges talks about the changing nature of work, especially potential job loss due to digitization — to which, he admits, his own company is not immune — and the demand for more specialized skills. In response to a question about why he supports an unconditional basic income (“bedingungsloses Grundeinkommen”), he notes that jobs are becoming more project-based, with permanent full-time employment becoming less of a norm.

Timotheus Höttges

Between digitization and project-based work structures, we should expect that workers will need more time to retrain as well as more periods of unemployment or part-time employment — and, according to Höttges, Germany’s current welfare system is ill-equipped to support such workers. Thus, he believes that the government should replace its complex system of subsidies with an unconditional basic income [1].

Höttges adds that an unconditional basic income would promote more dignity (“Würde”) than Germany’s current welfare system — which puts the would-be recipient in the position of a supplicant, having to ask for aid — and that it could promote entrepreneurship.

Although he admits that some might take advantage of the basic income without contributing to society, Höttges denies that a basic income would create a “society of loafers” (“Gesellschaft von Faulenzern”), since it is through work that people find meaning and identity.

Höttges also points out that a basic income would encourage respect for those who choose to do work that is traditionally unpaid, giving the example of care for ailing parents. (It’s worth noting in this connection that, earlier in the interview, Höttges argues that revenue is no longer an adequate measure of productivity, given the extent to which information can now be created and distributed freely, as in Wikipedia.)

When asked about funding for an unconditional basic income, Höttges stresses that the policy needs to be seen as part of a broader package of a reforms, including tax reform. He maintains that corporate profits must be taxed and redistributed as a matter of justice, fairness, and solidarity (“Gerechtigkeit, Fairness, Solidarität”).

The interview also mentions top-ranked German CEOs who are sympathetic to basic income, including Götz Werner of dm-drogerie markt — with whom Höttges has discussed the idea — and Siemens CEO Joe Kaeser, who called for “a kind of basic income” during the Süddeutsche Zeitung Economic Summit in November (although he subsequently indicated in a Tweet that he did not believe the basic income needed to be unconditional).

If you read German, you can read the entire interview here:

Ina Karabasz, “Telekom Timotheus Höttges CEO: ‘Wir sind zu satt’,” Handelsblatt, December 20, 2016.

 

[1] In the original German: “Also wird es Phasen geben, in denen der Mensch keine Arbeit hat, umschult oder nur in Teilzeit für ein Unternehmen arbeitet. Diese Phasen wird der Sozialstaat überbrücken müssen. Warum soll man dessen komplexe Förderungssystematik nicht mit einem bedingungslosen Grundeinkommen ersetzen?”


Timotheus Höttges photos: CC BY-SA 4.0 Sebaso

Catherine Clifford, “Elon Musk says robots will push us to a universal basic income—here’s how it would work”

Catherine Clifford, “Elon Musk says robots will push us to a universal basic income—here’s how it would work”

Catherine Clifford, senior entrepreneurship writer at CNBC, wrote the CNBC article announcing Elon Musk’s prediction that automation would make universal basic income (UBI) necessary. In a subsequent article, titled “Elon Musk says robots will push us to a universal basic income—here’s how it would work,” Clifford

In the article, Clifford portrays the automation of jobs as the main motivation for UBI, continuing to highlight Elon Musk’s remark that he’s “not sure what else one would do” but implement such a policy. (This focus on automation as the sole or main motivator is arguably misleading; many historically important arguments for UBI do not turn at all on worries about automation. Unquestionably, however, the threat of technological unemployment has recently been the driving force behind much of the media attention to UBI in the United States.)

Clifford goes on to note some highlights of the global UBI movement: the impending pilot in Finland, Basisinkomen 2018’s campaign for a basic income referendum in the Netherlands, and Switzerland’s vote on a basic income referendum earlier in 2016.

One passage in the article is especially noteworthy for BIEN: Clifford discusses the resolutions on the definition of ‘basic income’ made at BIEN’s 2016 Congress. In doing do so, she emphasizes that the definition of ‘basic income’ does not entail that basic income must be replacement for other programs and social services, and she point out that BIEN recommends that it not be viewed in this way–quoting BIEN co-chair Karl Widerquist as saying that UBI “is not ‘generally considered’ as a replacement for the rest of the social safety net”:

“Some see it primarily as a replacement. Others see it as a supplement, filling in the cracks. Some people who want it to be a replacement try to create the impression that it is generally considered to be so. But that’s not accurate.”

Reference

Catherine Clifford, “Elon Musk says robots will push us to a universal basic income—here’s how it would work,” CNBC, November 18, 2016.


Article reviewed by Ali Özgür Abalı.

Photo CC BY-ND 2.0 OnInnovation.

US: White House report rejects Basic Income as a solution to automation worries

US: White House report rejects Basic Income as a solution to automation worries

The most recent report from the US President’s Council of Economic Advisers mentions, but rejects, the suggestion that a universal basic income be implemented to mitigate economic disruption caused by the automation of labor.

On December 20, the Council of Economic Advisers to US President Barack Obama released a report on policy responses to the threat of job loss due to artificial intelligence (AI) and other labor-displacing technologies.

The report recommends three general strategies: (1) greater investment in AI research (noting that, despite the challenges posed by technological unemployment, AI promises myriad benefits), (2) job training and education for the highly skilled jobs of the future, and (3) strengthening the social safety net, including the provision of unemployment insurance to displaced workers. In discussing the third strategy, the authors make clear that their recommendation is to strengthen the existing social safety net, rather than to replace current programs with a universal basic income (UBI).

Jason Furman, CC BY-ND 2.0 Center for American Progress

Although the main body of the report does not directly address UBI, a prominent sidebar quotes a speech made by Council Chairman Jason Furman in a White House workshop last July, in which he dismisses UBI as a reasonable response to concerns about potential technological unemployment (see page 40). In the quoted passage, Furman acknowledges that proponents of UBI have many diverse motivations, including ”real and perceived deficiencies in the current social safety net, the belief in a simpler and more efficient system, and…the premise that we need to change our policies to deal with the changes that will be unleashed by AI and automation more broadly.”

Despite this, Furman goes on to cast UBI as policy “premised on giving up on the possibility of workers’ remaining employed” — a possibility that he himself does not believe the US government should rule out. Instead, according to Furman, “our goal should be first and foremost to foster the skills, training, job search assistance, and other labor market institutions to make sure people can get into jobs, which would much more directly address the employment issues raised by AI than would UBI.” The Council of Economic Advisers’ latest report continues to affirm this approach.

President-elect Donald Trump will take office in January 2017. As reporters like April Glaser (Recode) and Mike Brown (Inverse) point out, it is unlikely that Trump’s Cabinet will be receptive to many of the proposals in the report, which call for increased funding for welfare programs and public education.

 

References

Complete Report

Executive Office of the President, “Artificial Intelligence, Automation, and the Economy,” December 20, 2016.

Media Coverage

Mike Brown, “White House: Basic Income Won’t Solve Robot Automation,” Inverse, December 21, 2016.

Klint Finley, “The White House’s Fix for Robots Stealing Jobs? Education,” Wired, December 21, 2016.

– Includes commentary from Jim Pugh of the Universal Income Project, a California-based basic income advocacy group, regarding the narrowness of the conception of UBI in Furman’s remarks.

April Glaser, “The White House says the U.S. will need a stronger social safety net to help workers displaced by robots,” Recode, December 20, 2016.


Reviewed by Genevieve Shanahan 

White House in snow photo, CC BY-ND 2.0 U.S. Embassy, Jakarta

 

Gary Fowler, “Universal basic income: If a robot takes your job, it could actually be good for you”

Gary Fowler, “Universal basic income: If a robot takes your job, it could actually be good for you”

Entrepreneur Gary Fowler has written a guest column for the San Francisco tech zine VentureBeat in which he argues that universal basic income is a viable solution for technological unemployment and that, rather than making people lazy, it would permit the flourishing of human creativity.

After considering the capacity of AI technologies to reduce the need for human labor, and reflecting on the results of basic income trials and psychological studies of motivation, Fowler asserts that people will not become lazy and uncreative “if robots take our jobs and the government gives us a universal basic income.” He goes on to hypothesize that UBI could “lead to a decrease in unemployment as people work towards achieving their needs beyond physiological requirements.”

Fowler is the CEO and cofounder of Findo, a search assistant program, and the founder of Fowler International, an international business development consulting company. His VentureBeat draws from his experience with smart search assistants; in predicting the future of work, he envisions a society in which AI assistants look after individuals’ day-to-day needs.

Gary Fowler (November 6, 2016) “Universal basic income: If a robot takes your job, it could actually be good for you” VentureBeat.


Basic Income Fact-Checking.

It is worth clarifying a couple of ambiguous statements that Fowler makes about basic income pilots.

• Fowler writes, “Finland, for example has initiated a two-year trial period where each individual will get $600 a month as basic income.” To be precise, the two-year trial will only select participants from a subset of the population of working-age adults currently receiving social welfare benefits (see, e.g., “Legislation for Basic Income Experiment Underway).

• The pilot in Namibia to which Fowler refers was not nationwide (as Fowler’s comment might suggest) but confined to the village of Otjivero. Additionally, it was administered by the Basic Income Grant (BIG) Coalition — a coalition of organizations including NGOs, churches, and unions that has committed to work with the Namibian government — rather than the government itself. (See the BIG Coalition for more information.)


Reviewed by Ali Özgür Abalı