The Role of Universal Basic Income (UBI) in an Automated World

In the current technological era, the debate around Universal Basic Income (UBI) has gained significant traction. Various cities, including Chicago, are experimenting with UBI. However, the success and feasibility of implementing UBI are often questioned. This article explores the implications of UBI for preparing individuals for an automated world and its potential role in sustaining economic growth.

Understanding the Impact of Automation on the Economy

As technology advances, the fear of human obsolescence due to automation is real. Machines, being devoid of the need for financial incentives, cannot engage in consumption and transactions. Each job displacement due to automation leads to a reduction in economic activity, as the funds that were previously earned are no longer circulating in the market. To counteract this, a viable solution is to ensure that individuals still have means to spend, thus maintaining the economic cycle.

What is UBI?

UBI refers to a model where a basic income is provided to every citizen, regardless of their employment status. This income is intended to meet basic living expenses and provide a safety net for individuals who might lose their jobs due to technological advancements. Chicago's experiment is a direct manifestation of this concept, where individuals over the age of 65 receive up to $2,500 annually for property taxes or additional SNAP benefits.

Economic Preparation with UBI

The primary concern with automation is not just job displacement but also the potential stagnation of the economy. If machines take over jobs, the flow of money within the economy slows down, leading to a decrease in consumer spending, which is a critical component of economic activity. UBI addresses this issue by providing every citizen with the means to continue purchasing goods and services, thereby keeping the economy active.

Ubiquitous Automation

It's important to note that while the economy may see a high degree of automation, it will never be completely automated. There will always be a need for human oversight and maintenance of automated systems. For instance, while robots can perform repetitive tasks, they require human engineers to develop and maintain them. Thus, there will always be a need for human labor, albeit in different forms.

The Vision for UBI in the Future

As we look towards the future, the concept of UBI is not just about providing a safety net. It also involves a shift in our understanding of wealth creation. In a world increasingly dominated by technology, UBI aims to transform the economic landscape in a way that human ingenuity can thrive. Instead of just receiving a basic income, individuals may also have a share in the profits generated by automation, receiving dividends from the national corporation that manages robot paychecks.

Conclusion

In summary, while UBI may not be a silver bullet for all economic and societal challenges, it plays a crucial role in preparing individuals for an automated world. By ensuring that the basic needs of individuals are met, UBI can stimulate economic activity and allow individuals to pursue their passions without the constant pressure of earning a living. The implementation of UBI is not about accepting a lifeline but embracing a new paradigm where technology and human creativity coexist.