by Tyler Prochazka | Nov 25, 2015 | News
A report (pdf) by Bank of America Merrill Lynch predicts that unemployment due to technological innovation could eliminate nearly half of all jobs in the United States. This will further exacerbate income inequality, as the potential $7 trillion in new wealth from technology will likely be exclusively controlled by powerful individuals.
The report worries that this will lead to monopolization and impede innovation. While in the past, predictions of technology destroying human employment have been wrong, the article points out that in the 1930s technology made horses obsolete and the same could happen with humans.
The article suggests a Universal Basic Income as a potential solution to avoid this pitfall.
Jack Smith, “Even Big Banks Think Robot Automation Will Lead to Further Income Inequality”, Mic, November 11, 2015.
by Tyler Prochazka | Nov 23, 2015 | News
Zipcar co-founder Robin Chase is optimistic about the future of the sharing economy, but also believes that automation will force many into unemployment. While speaking at the Global Drucker Forum, Chase advocated for a “basic income” in order to combat what she sees as inevitable job displacement by technology.
While some believe that new jobs will replace those that are automated, Chase said she believes many unskilled workers will be left behind. In order to push forward the idea in the United States, Chase called for basic-income pilot projects in cities across the country.
Rick Wartzman, “Startup CEO Loves Tech but Fears Millions Will Be Jobless”, Fortune, November 14, 2015.
by Tyler Prochazka | Nov 22, 2015 | News
In order to combat poverty and increasing automation of labor, experts in technology and policy came together at the Basic Income Createathon. Participants divided into groups to develop proposals for a Basic Income Guarantee (BIG).
One group proposed a Group Income scheme, or a “voluntary automated decentralized income transfer.” This would allow a group of individuals to automatically share their income to ensure everyone received at least a basic amount of money.
One group created a website, bettertaxes.org, to illustrate how much money is spent by the U.S. government and how much would be required to implement a basic income of $1,000 USD per month.
Jon Evans, ‘Money For Nothing For Everyone’, Tech Crunch, November 22, 2015.
by Tyler Prochazka | Nov 21, 2015 | News
The most common criticisms of a universal basic income (UBI) are that it is unfeasible and too expensive. However, in a recent series on UBI in the Washington Post, some of the strongest attacks dealt with the possibility that it may undermine civil society in the United States.
Jonathan Coppage, associate editor of The American Conservative magazine, argues that a UBI provides the freedom to “no longer be needed” by the marketplace, where many societal bonds are formed. A UBI would remove these ties, Coppage said.
In India, a UBI trial demonstrated instead that a UBI has the potential to increase entrepreneurial and economic activity. Also, unlike the current entitlement system, UBI benefits do not diminish as income rises, so replacing current social services with a UBI can actually encourage individuals to enter the marketplace.
A cautionary tale does emerge from rentier states in the Middle East. Rentier states, such as Saudi Arabia and Qatar, use oil revenue to provide their citizens with lavish social services in order to buy loyalty to the government. Some argue that this environment has contributed to the underdevelopment of rentier states’ civil societies, while others dispute this theory.
Nonetheless, the lessons from rentier states cannot properly be applied to implementing a UBI in the United States. There are far too many cultural and institutional differences (such as the repressive politics of many rentier states) to make these countries a useful case study.
In Alaska, the Permanent Fund Dividend (PFD) provides a more accurate illustration of how a UBI would affect civil society in America. The PFD provides an annual payment from the state’s oil revenues to each citizen of Alaska. It is arguably the closest program to a full UBI in the world.
One of the best measures of the strength of civil society is the level of volunteerism, as it indicates how invested individuals are in the betterment of their communities. Alaska is ranked as having the tenth highest volunteer participation as a percentage of the population in the United States. Additionally, from 1989 to 2006, Alaska’s volunteer rate increased by 10 percent.
Many have made the case that a UBI would increase support for civil society as it would allow individuals to shift some of their time to civic engagement. Although more in-depth statistical analysis would be needed to demonstrate that Alaska’s high volunteerism rate is a partial result of the PFD, it is easy to see why it may be the case; the financial freedom resulting from a UBI allows people to dedicate more time to activities that truly benefit them and their community.
At the very least, the experience in Alaska shows us that a universal basic income in the United States would not be the death of civil society. In fact, it could be the very stimulus civil society needs to thrive.
by Tyler Prochazka | Oct 12, 2015 | News
freedigitalphotos.net
As researchers observe a growing income and social divide in the United States, some are calling for a Universal Basic Income (UBI) approach to remedy the problem. Oren Cass, a senior fellow at the Manhattan Institute, argues in a Washington Post article that he does not believe a UBI is the answer to America’s social woes.
Cass said he does not think that the rise of income inequality has created the “collapse” of social well-being in the United States. Instead, the article argues that addressing the weakening of community ties should be the focus of bettering society and a UBI may be a counterproductive approach.
The large cost of the UBI, and the potential to erode ties between workers and employees are two reasons Cass provides as opposing the UBI concept. He argues that an aggressive wage subsidy would be a more effective method of tackling poverty.
Oren Cass, “Basic income won’t fix America’s social divide” The Washington Post, Sept. 29, 2015.
A report (pdf) by Bank of America Merrill Lynch predicts that unemployment due to technological innovation could eliminate nearly half of all jobs in the United States. This will further exacerbate income inequality, as the potential $7 trillion in new wealth from technology will likely be exclusively controlled by powerful individuals.
