Why We Need Universal Basic Income
Universal basic income could reduce poverty, improve income security, boost general well-being and increase GDP. In simple terms, universal basic income is a form of money redistribution that is not means based. For example, one receives $1000 every month regardless of education or income level. Although this seems too good to be true, it has proven to be feasible and desirable in almost any economy.
As technology further improves, more and more jobs will be displaced by technological advancement. As a result, a system where part of the increase in productivity is taxed, and then distributed as cash transfers to all citizens, whether they are working or not, could help ease some of that tension. The thought of jobs that require cognitive ability being replaced by robots may seem like a distant idea. However, artificial intelligence becoming more efficient at tasks that require cognitive ability is becoming ever more prominent. Experts estimate that AI would become more efficient than humans at the following:
- Language translation by 2024
- Writing high-school-level essays by 2026
- Driving a truck by 2027
- Working in retail by 2031
- Writing a bestselling book by 2049
It is said that there is a fifty percent chance that AI will be able to outperform humans in all tasks by 2137. Although these predictions are largely consistent with guesswork and it is difficult to pinpoint exact dates, there remains a consensus around the fact that machines are improving and could replace jobs in the future.
Additionally, the ever so daunting problem of the rich getting richer and the poor getting poorer could be halted by universal basic income. Research conducted by the London School of Economics found that the average wealth in France or Britain is about 200,000 euros per adult and the median wealth will be closer to 100,000 euros per adult, but the bottom 50% owns virtually nothing. Universal basic income could help balance this inequality. Furthermore, having universal basic incomes gives employees bargaining power regarding their salary. For example, in the book Give People Money, the author Annie Lowrey, says: “Why take a crummy job for $7.25 an hour when you have a guaranteed 1,000 dollars a month to fall back on?”.
Some may argue that the comfort of a guaranteed sum of money every month would decrease productivity. However, findings by the Roosevelt Institute have concluded that implementing universal basic income in the U.S. would have a positive effect on the nation’s economy. The study examined three separate proposals: a “basic income” of $1,000 per month given to every adult, a “base income” of $500 per month given to every adult, and a “child allowance” of $250 per month for every child. The researchers concluded that the larger the sum, the more significant the positive economic impact. They projected that the $1,000 basic income would grow the economy by 12.56 percent over the course of eight years, after which point its effect would diminish. That would translate to an increase in the country’s gross domestic product of $2.48 trillion.
