In the earlier days of this blog, I have written an article that talks about how robots will become way more cost efficient than humans in the future. A question that might come to mind after reading that sentence is: How will we generate revenue in the future if more and more jobs are being automated? One of the solutions that seems to really stand out these days is called Basic Income.
Similar ideas have been discussed as early as 1795, but the basic income, as it is presented today, only appeared during the 60s when a negative income tax was suggested to simplify welfare and help people get back into the workforce. Today, it is possible that a universal basic income might be the solution to the job loss problem. This income gives the same amount of money (equal to the calculated amount needed for survival) to everyone without conditions or discrimination.
Why is this a good idea? Since the 1970's, wages have declined or stayed the same, jobs have become scarce and many people require public assistance to top off what they already earn each month. And the future, thanks to robots, does not look brighter. Finally, welfare is not as useful and efficient anymore as it was in the 90s (in America at least). Basic Income creates a floor revenue on which people can build, develop personally and enjoy life without fear of complete loss of income. Finally, it also helps us embrace change in the society (such as automation) without fearing its consequences on human jobs.
Why is it not a good idea? Well, it has not yet been proven to work on a big scale. Basic Income might cut welfare payments, reduce health care and tax credits to avoid raising taxes too much. But even then, basic income could only be affordable with around 45% taxes (2012 estimate from Ireland). There were trials in the 70s in the US that concluded that a basic income reduced poverty but also reduced the number of hours each person worked. So will it make people lazier?
Testing has taken place in Sweden, India, Germany, America, etc. The results are not unanimously positive, but in some places, basic income has generated some pretty good results. Crime rates have gone down, high school completion rates have gone up, but is this something that will be maintained in the long run? Wouldn't people try to abuse of this system or use the money for alcohol or drugs? There is still much testing to do and, if this idea is implemented, it will drastically change things on economic, politic and social levels.
We are approaching an era where there will simply be less things to do. Maybe one day we will have to implement such a system. Let's hope that, until then, we would have understand the advantages and the consequences of such a drastic change to our society. This might be a solution that seems to solve no problem but it will definitely change the way we live our lives for the better or for the worst. Since both sides of the political distribution (left and right) seem to like the idea, why not give it a try on a bigger level and see what happens. It might even teach us something about ourselves.
P.S. I want to know what people from different places think of this. If you feel like sharing your opinion, go ahead and leave a comment. I'll read it with great pleasure!
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