WTF: Who'll UBI?

We Talk Friday Ep. 11: Who'll UBI?

With all the economic turmoil ongoing, I wonder which will be the first country to bit e the bullet and introduce a universal basic income for citizens. I both like and dislike the idea of universal basic incomes and this isn't the place today to get into that conversation, but I do see some potential benefits, especially given the other changes in the economy and culture.

For instance, as automation takes more jobs away from humans, the value the automation creates has to be distributed back to humans, rather than just collecting into bank accounts in tax havens. Takes on automated production would provide the funding potential for a UBI.

And A UBI can actually create jobs, if there is increased consumer spending in various sectors that will require more people. But more importantly than that, it can supplement incomes for those willing to reduce their hours each week, giving space for more employment opportunities. With "four-day weeks" getting tested, a UBI can mean that those in industries that are cutting back, can reduce hours of employees, without the employees losing out, and it gives those employees time to retrain.

But, I think that the biggest benefit of a UBI is that it massively reduces the administration costs and burden on the government and on people, also reducing the need to constantly police to ensure people are sticking to the rules - like "not working too much". If there was a UBI, all of the rules for means testing and earning tiers and all of that can get cut away completely. Everyone gets it - work and earn as much as you want on top without risking loss.

While this generates governmental debt, it will also be offset by people spending more, reduction in admin, increase in jobs, and as many of the tests have shown, increase in wellbeing. That is the goal of government, isn't it? Shouldn't they then be working toward that end? As I mentioned the other day, the increase in national debt in the US over the last decade, would pay off every home mortgage, every care loan, and all credit card debt. Has that national debt money been well used to improve the daily lives of Americans? If every American was debt-free suddenly, would their lives be better? Of course, that is not the way to do it, but you get my point.

UBI is also a terrible idea, because people will likely rely on it, which means relying on the government even more to provide for them. But, it is moving that way anyway, because of the increase of automation technology, which will leave more people struggling to fend for themselves. And, UBI is a stop-gap measure at best, but it might be necessary to cover any transition from the economy we have built, and the economy we need to build that works effectively to provide wellbeing for humans, instead of profits for corporate entities.

Anyway, while I have my reservations in regard to many respects, I am highly interested in giving it a go in practice, at scale. It is unlikely to be enough by itself, but like the Economic Improvement Plan on HIVE a few years ago, change a few other factors in the economy simultaneously and the results might be pretty good. For instance, four-day weeks, corporate taxes paid in the country where income was earned, and a flat-rate taxation system that is lower than the corporate rate.

Sounds crazy.

Would you want it to be tried in your country?

Taraz
[ Gen1: Hive ]