Hi there everyone, TheRingMaster is back again and with all that is going on in the world today regarding the unemployment rate, companies, governments and business men are seeking solutions. Quite a number of possible solutions have been suggested and one very interesting possible solution Elon Musk, CEO of Tesla suggested in an interview was Universal Basic Income (UBI).
Has the world come to the point where we need to rely on UBI? - Well it seems to be getting closer.
- In a CNBC live interview, Elon Musk suggested that due to automation and how it would cause so many to lose their jobs, there's a chance that we would end up with UBI and he's not sure what else we would do besides this.
Certainly, one innovation that has already started driving unemployment rates so high is robotics and advancements in artificial intelligence (AI).
We already see companies laying off some of its employees and replacing them with robots that seem more efficient and cost effective. This will keep happening at a rather alarming rate and thus there's a need for us to consider possible solutions before it gets too bad to handle.
- Google is already planning on reducing its workforce and they might just end up with cooperate executives and boardroom members and infact I think even those people could be replaced by smart AI engines that can think more effectively and efficiently and is even more creative in coming up with solutions than people are.
The possibility of people losing their jobs in large numbers as robots continue to take over the positions that were previously done by humans is not a far-fetched notion. I used to believe that these companies would think about the employees but I was wrong in perspective.
I had a discussion with 
The point is that these companies are businesses and so the end goal is profits or good revenue, if replacing their loyal workforce with robots earn them significantly higher profits then that's what they'll do. It is not the duty of companies to take care of people, that's for the Government, and thus these companies will certainly layoff more people.
This is why perhaps Elon Musk and some others would consider UBI as a great alternative.
However, I personally think that there is another more beneficial and sustainable way of handling the emerging problem and it lies in the world embracing Web 3.0 technology
The Limits of Universal Basic Income
Universal Basic Income (UBI) involves a government policy whereby every citizen of the country would regularly get an unconditional sum of money from the state coffers. Obviously it would be through centralized bank transfer.
The main aim behind UBI is to make sure no matter what job someone has, they will still be financially secure enough to cover basic needs. This means low income earners might still have an amount of money coming in to handle other basic needs like food, clothing, shelter. It's basically advanced level social security for everyone.
I know some people that hate to work and love free money would like this idea as long as the UBI is enough for them to live normal.
Now, I personally would not have been against UBI although I would prefer to live a life where I don't depend on it, but the main reason I think this is a bad idea is because of a few drawbacks I realized.
Government Dependency
The first drawback is how much citizens would heavily depend on the government. The UBI will have to be issued by the government and we see how governments are already failing in so many areas. More people fully relying on the government's resources and continuous funding could strain national budget and economies even more.
The pressure on the government would become too intense for any government to handle. Imagine America having to fund three hundred million plus people every single month or year or infact imagine China having to fund two billion plus people. That's something I think would not be sustainable.
Lack of Motivation
I believe people losing their motivation to do anything would be one of the biggest drawbacks to UBI.
If the people know that they will be receiving some guaranteed income without working it might make them less motivated to look for jobs or acquire some new skills. Although businesses would be automated and dominated by Robots, people would still need to take on some jobs that would require human touch.
Where's the motivation for working when you know you're going to earn enough money regardless. Yes I do believe in passion but many are not working because they're passionate, but the need to make ends meet and survive.
Inflation Risk
We're already dealing with inflation issues and the price of goods and services are constantly going up. UBI will worsen the case for sure.
UBI would involve pumping large sums of money into an economy and that may lead to inflation. The interesting thing is that the money given to the people with UBI policy is to be used to purchase goods and pay for services.
If inflation happens, it would end up undermining the purchasing power of the UBI itself. So the government would give you money which would not be enough to survive on.
Web 3.0 is Promising
As a Web 3.0 enthusiast, I realize that we could actually take advantage of the potential of this technology to solve a great deal of the unemployment problems. The reason is primarily one and that is the world of earning opportunities that Web 3.0 presents to us, all in a decentralized context where government and single authorities cannot manipulate or influence earnings against the people.
It can offer a set of opportunities that can address issues on unemployment more effectively than any other policy including Universal Basic Income. I'll just touch on a few of these opportunities.
Decentralized Finance (DeFi)
Our reliant on banks has really hurt a lot of people. Now don't get me wrong, banks are great when they're not trying to take advantage of the people.
Since banks are centralized financial institutions and are also heavily influenced by the government, they have more control over any money you save or invest there than you do.
I'm probably not the first person to tell you that when you save money in the bank, it's not exactly all there at the moment, the banks invest that money to make more money and primally give your money out as loans to other people to make heavy returns because of their stupendous interest rates.
That's why often people get denied when they try to withdraw huge sums of cash from the bank. They make it way easier to deposit than to withdraw.
The good news is that Web 3.0 can be used to create decentralized financial services that let people earn, save, invest, and transact without relying on banks as intermediaries. Also since Web 3.0 tools are built on blockchain technology, it blends well with cryptocurrency which is money you fully control.
I think I just summarized every reason why the government and banks hate crypto, blockchain and Web 3.0 tools, it's essentially power to the people (or what I like to call, the real democracy).
DeFi could make access to financial services more democratic and open up new ways for people around the world to earn income.
Play-to-Earn Gaming (P2E)
Although I would admit that we still can't compare blockchain based P2E games to some popular epic games like GTA, NFS, COD or Fortnite, however improvement is being made and perhaps one day games such as Splinterlands on Hive can get as good in gameplay as these games.
The point I'm trying to make though is that P2E games are great examples of how leisure activities can be turned into money-making opportunities in a Web 3.0 context.
Imagine having the games I just mentioned become P2E where people can play all games to earn money constantly. Some would live off of their earnings and wouldn't need to depend on the government's financial aid.
It would be a time where gaming becomes a job.
The Creator Economies
A particular observation reveals an upsurge of content creators economy. From bloggers to vloggers and countless others. Artists, musicians and content creators have the ability to directly monetize their work themselves by using platforms that are run by Web 3.0 tools.
Yes we've got a scalability issue but that's an issue for now. Developers are working hard on improving the technology and scaling it. The thing about Web 2.0 creators on platforms like YouTube, TikTok, Instagram and Facebook is that a large proportion of their earnings is taken from them by the platform owners or developers. This is not the case on Web 3.0. Creators can retain a higher proportion of their earnings by cutting out middlemen, and this would enable them to build sustainable careers.
Decentralized Marketplaces
Imagine a world where our online market place is not controlled by single organizations or the government. A world where companies do not have too much influence in online trades. That's what Web 3.0 can offer to us.
People get to trade goods and services among themselves via peer-to-peer marketplaces facilitated or powered by Web 3.0 technology.
I remember sharing a blog on how giant companies like Amazon practice predatory pricing which affects the growth of many business startups. These giant companies can afford to lower the price of some of their goods to a point where they themselves do not make any profit.
The main aim is to create an environment where a startup can never put a lower price on their goods and that keeps companies like Amazon reigning and dominating. Problems like this cannot happen in a decentralized marketplace where these tech giants do not dictate pricing.
Web 3.0 will enhance local economies’ growth which would lead to creating more entrepreneurship chances.
Skill Development and Education
One of the positive sides of Web 3.0 technology or system is its all inclusiveness whereby no matter which country or region of the world you are, you would still be able to connect with people, services and opportunities.
Decentralized education programs and skill development programs using Web 3.0 platforms would be able to bridge the gap between quality learning and access to all levels of education in the society. No limitations for any student. We can learn new things quicker and adequately.
I think this would be very good in enabling people to transit with ease in the changing job markets towards new careers.
The Bottom Line
Web 3.0 can really be a great platform for most people that lose their jobs to robots and other means to still earn money. The best advantage of Web 3.0 lies in ownership. Any content you share here, any system you establish or any transaction you perform is fully controlled by yourself.
Universal Basic Income could be a possible solution to people losing their jobs due to automation but I think finding new ways to earn money is the better option and Web 3.0. even in its early stages offers a plethora of earning opportunities.
I really believe our world can become great with Web 3.0 adoption. It's our responsibility as a Web 3.0 community to make the world understand the potential. Adoption is still ongoing and crypto is entering different industries now. I hope the world sees the value of Web 3.0.
Thank you so much for your time and as always I would love to get your feedback on the blog topic.
Let's Make Web 3.0 Great ✊