The
Washington Post recently had an
article faintly praising Unconditional Basic Income as Utopian. Clearly it has the potential when paired with automation and progressive taxation to bring about that golden age we have been promised since the dawn of the industrial revolution, where mankind would be freed from drudgery. But in itself Unconditional Basic Income is not utopian. In fact for some it could be the opposite.
Just take a look at the two of the parties with Universal Basic Income as their policy. The Green Party are obvious supporters and one might consider them utopian. But UKIP also have Basic Income as one of their policies. The difference between them is that the green party would use Basic Income as a way of fairly sharing our resources and UKIP probably see it as a way of reducing the welfare beurocracy and probably intend to keep it as low as possible so as to punish the scroungers. How can both these views be utopian?
To say that basic income is utopian is dismissive, even if it is considered as a back handed complement. We would never be able to implement a utopian form of basic income today, the form it would take in the UK would most likely be largely tax neutral and not too large but that does not mean that it doesn't have utopian potential. Unconditional Basic Income will be essential if we are to avoid terrible inequality as we start to usher in a future where work is rare and unemployment or underemployment is the norm. If you start looking into the future a little way you will see that the current state of affairs cannot continue forever.
Google is developing a
driverless car that could eliminate jobs that depend on drivers. Momentum Machines have built a
burger flipping robot that could eliminate millions of jobs worldwide. Amazon's warehouses are filled with Robots where once people would have worked. The internet itself is hugely disruptive. Even if new technology creates as many jobs as it destroys for a while yet, we are not going to see
full employment again.
So if we accept that unemployment is going to increase in the future how would the current economic situation work if extrapolated to the future. We would most likely see people working harder to keep what few jobs were left. Masses of unemployed people struggling to get by. The power of the wealth would grow out of proportion because they would have a monopoly on jobs. Supply and demand means that those jobs that were left would pay less because the companies would have a big pool of people to draw from. More and more people would have less money for basic needs. We have already seen civil disorder here in the UK how much worse could it get?
What about with basic income? As the jobs decreased over time people would be able to fall back on their income without any stigma because it would be a right and not a handout. We would need more progressive taxes to fund the basic income as unemployment increased. People would not be at the mercy of companies for work and some would trade full time work for part time work and social work. Wages would most likely go up in some sectors and that would probably accelerate automation. Shorter working hours would make people happier. They would spend more time with their children and before we know it utopia!
Ok so I'm over-egging it a bit. Even with basic income balancing the power of the have's and the have nots will probably be a constant political struggle and we will also need to fight inflation and fix our institutions but I cannot see our current political and economic framework deliver anything other than cyclical misery.
So back to reality, lets forget about utopia for now and look at Basic Income as it would be implemented here and now. If it is to be implemented at all it will probably start small. The
citizen's income trust are talking about making it revenue neutral and eliminating administrative waste. The savings are enough to ensure that those on low incomes are better off. If we can get even some small gains from basic income then we have done something constructive and we can pave the way to utopia for our children if they choose to take it.