Wolfgang Müller – BI News
This article by Noah Smith, published in The Atlantic, January 13, 2013, discusses the hypothetical proceeding fall of labor income along with its consequences and possible solutions. He argues that the two-thirds/one-thirds division of labor and capital income of most rich nations has changed in a disadvantage to labor income. This is a result of mainly two reasons: First, China’s low wage labor force entered into the global trading system, and second, more persuasive, technology replaces humans in more and more areas. This development requires new creative measurements since current social security systems are not build to deal with this challenge. As an alternative, Smith suggests stakeholder grants “with some fairly light paternalism”, which he calls “portfolio of capital ownership”. Not exactly basic income, but a step in that direction.
Smith, Noah, “The End of Labor: How to Protect Workers From the Rise of Robots,” The Atlantic, January 13, 2013
https://www.theatlantic.com/business/archive/2013/01/the-end-of-labor-how-to-protect-workers-from-the-rise-of-the-robots/267135/
