I was one of those people that did not fully comprehend the idea of UBI, until the COVID-19 outbreak happened, and we all needed assistance from the government. Albeit a black swan event, it did teach us a lot about our system, particularly it’s weak points, in a very short period of time. One thing that was evident was the need for immediate cash injection into the system to keep the house afloat. This was the most practical control study onUBI we have ever partaken in. Not only did my views on the topic completely reverse but I realized a lot of my bias on the subject matter stemmed from a very radicalized view of UBI and its supporters. On top of that I realized I never fully gave it much thought and my position lacked in-depth understanding. In the aftermath of the lockdown I became more intrigued with the idea of UBI and realized how it’s an extremely pragmatic solution to our most pressing social and economic challenges.
I will thoroughly address the main concerns and and debunk the myths associated with UBI below.
1) The idea that people will not be incentivized to work and rather become lazy
People will not quit working if they’re able to eat, pay bills and thus cover their basic needs more effortlessly. Instead they will redirect their efforts towards more meaningful cause. Causes that have intrinsic value to them and will translate into economic gain for society
The vast majority of the population are living on margins; meaning people are living inside a certain socioeconomic bracket, waiting to build enough growth or leverage needed to move up to the next adjacent bracket and UBI is the ultimate catalyst for this upward mobility.This upward mobility of educated, entrepreneurial progressive individuals is what powers the growth of society. We’re empowering this growing segment of the population, by enabling them to dedicate their time elsewhere.
The pursuit of art, literature, entrepreneurship, raising a family or acquiring any other marketable skills require time, with UBI easing this constraint, we’re able to create more room for this integral growth. This is what’s required to meet the challenges of future competition. We are maximizing the utility of human capital. Time is the most valuable asset here; money is the means by which we solve it!
It is integral to recognize that the audience needs to form an emotional connection to my message. So right away, I address the single biggest argument against UBI which is also one of its oldest bias. I am giving them an opportunity to realize that within everyone is a creative persona that is bound by the limitation of time and money. Only when freed from the constraint, it can realize its true potential.
2) The idea that employers will find it difficult to fill position as a result of the disincentive
With the safety net of UBI employers will find it challenging to employee and fill vacancy only if they’re offering substandard pay, working terms or condition, or have an employee relationship management issue.
Employees sustaining and tolerating abuse or substandard working conditions for the sake of putting food on the table for their family will be a thing of the past. This is a terrible way to employee people. When the idea of starvation and loss of shelter becomes the primary motivation for an employee and the means by which an employer can continue their business, this creates a disproportionately unbalanced power dynamic.
Workers cannot hold their employers liable for mistreatment to the extent that one should be able to. With UBI in place, workers can resign and not fear for their basic provision, this also sends a clear message to the employer as a high turn overrate is never a good sign for the business and a warning sign to others about their malpractices. Eventually one of two things will happen; they will fail to survive or will have to completely restructure themselves which may include a change of management.
These changes over the course of a generation will usher in industry wide reforms that is long overdue. Furthermore, vacant positions will force employers and industries to evolve and move towards more machine-based integration, a direction we’re already clearly headed towards. But more importantly, if an employee receives more in unemployment benefit than they did during their employment that means the employer was not paying them a livable wage. Someone working full time should not have to live below the poverty line and the taxpayers should not have to subsidize the payroll of these corporations. UBI completely solves this once and for all, while insulating the individual from the stigma associated with being on benefits or food stamps.
The audience’s connection to the message is beginning to materialize, I can feel it. Everybody in this room has worked at some point in their life and recognizes the frustration of having to remain in a compromised situation. The idea of a better future is definitely appealing but some of their reservation remains and comes down to how I address the next few challenges.
3) The idea that this will push us towards a dystopian AI dominated future where jobs will become obsolete– instead it’s future-proofing the economy against the inevitable while also supplementing our natural progression
Right now, the five most common jobs in the US are in; administration, retail & sales, food services, trucking & transportation and manufacturing. Roughly 50% of Americans are employed in this field, as only 32% are college graduates.Technology has already begun changing the landscape surrounding these jobs. Artificial intelligence in particular, has accelerated the shift in manufacturing and with machine learning these tasks are becoming increasingly sophisticated while the machines executing them are refining themselves and constantly looking for ways to improve.
The advent growth of automation and artificial intelligence is already restructuring our job market, but machine learning and AI are supported by and based on the foundation of a highly skilled workforce, which the US & Canada are rich in. It only makes sense for future generation to be more geared towards such pre-requisites. As the recognition for such skill grows so does the demand for it, pushing current young professionals towards adopting these skills. Skills without which we will not be able to compete as a global player. Thus, it is essential that we supplement these changes with UBI, enabling our labor markets to counter the years of job depletion suffered from outsourcing.
We cannot compete by simply adopting and overcoming but we must recognize where globalization is pushing the future towards and stay two steps ahead.
Everybody can sense of what the future looks like. The future of AI and global restructuring of the labour market requires us to make some changes so we can stay ahead of the competition. As explained UBI can help facilitate those changes faster and seamlessly. The audience recognizes that this structure of UBI will uniformly ease pain point on all levels, but for our skilled workforce yearning for that upward mobility, it will yield the most significant and immediate results.
4) How do we fund UBI?
It is estimated to require $3 Trillion dollars to fund UBI in the US. Firstly, the cost of $3 Trillion diminishes as this will automatically offset the cost of funding 126 social security and welfare programs costing up to a $1.5T. This shrinks the cost from $3T to roughly $1.8T. Of the $1.8T we will get back roughly $400B in tax receipts and furthermore we will collectively save between $100B -
$200B in incarceration, homelessness services and emergency room healthcare. The idea of UBI will severely impact the psychology amongst the poorest demographic; with UBI in place incarceration rates are expected to drop drastically as severe food shortages and extreme poverty will be wiped out as well as further disincentivized repeat offenders.
Needless to say, this will have a dramatically positive impact on the children of the poorest socioeconomic background, as parents will be home more often and be able to attend to the needs of their children. Hence these kids are likely to be healthier, well-nourished, more likely to graduate from high school and pursue higher education. Not to mention the billions we have saved in mental health services, substance abuse rehab, domestic abuse and other inter-linked associated services incurred over the lifetime of an individual suffering from neglect or abuse. All such benefits are intrinsically valuable to society and cannot be compromised with the monetary cost associated with implementing them.
This is the most pressing concern of anyone discussing UBI; how do we fund this? With the funding addressed and compartmentalized into smaller tasks, plus with the recognition that it will generate billions through offsets and cost-savings, this challenge becomes principally more worthwhile and solvable. The audience is beginning to understand the pursuit of UBI has now become much more pragmatic and feasible.
In conclusion, I can understand this may be a lot of information to digest, but I encourage everyone of you to further educate yourselves on the nuances of this topic. You may become voters who may one day have to vote on policies regarding this matter, and when that day comes, I want all of you to be knowledgeable on this issue. I further encourage you to examine the circumstances you were in during the lockdown, and how the CERB cheques enabled you to cope with the uncertainty and how UBI collectively affects all of us.
The investments we make today will solve the challenges of tomorrow. The UBI is an investment in all of us!
