I keep hearing about this issue and I can’t stop wondering about how parallel to each other are those defending this idea with those denying its merits.
Pro:
-Robots are eating more and more jobs so more and more people will end up hungry.
-AI will make robots so productive that it will be far more efficient to use robots than human workers.
-A decent income is a human right.
Con:
-This is a socialist move, hence it will end up in failure – no other reason offered.
As it is obvious to all, both sides score big.
Yes, including ‘a decent income is a human right’ and ‘all socialist ideas end up in failure’.
Then what are they fighting each-other about?!?
Let me rephrase that.
WHY are they fighting, in the first place?
Because neither listen to what the other has to say… as simple as that…
Let me discuss some of the practicalities involved.
Robots eating up jobs and AI being able to continually increase financial efficiency are so evident that they do not deserve much consideration.
‘All socialist moves ended up in failure’.
We need to define socialism in order to make sense of this sentence.
Mainly because ‘socialism’ is one of the most abused words nowadays, on a par with liberalism. Sometimes they are even considered synonyms…
Well, ‘liberalism’ comes from liberty and bona fide liberalism is concerned with individual freedom.
Socialism, on the other hand, comes from social. And is concerned with the the workings of the entire society.
The point being that there are two types of socialism. One which is ‘somewhat’ synonym with liberalism – the ‘reverse’ side of liberalism, actually, while the latter is the exact opposite.
I’m not making any sense?
Let me start from the other side.
All forms of socialism which have failed have been excessively centralized forms of government. And it was because of that excessive centralism that they had failed, not because of being ‘socialist’. The evident proof being that the same thing has happened with all right-wing dictatorships, which had used the very same excessively centralized decision making mechanism – the totalitarian government …
Which brings us back to the problem at hand.
For Universal Basic Income to work – or Guaranteed Basic Income, as some insist on calling it, it has to be financed.
Through taxes, right? Which means that those owning the robots would have to be somehow convinced to give up a huge proportion of their profits… Then why bother in the first place…? Why start any businesses, at all?
We’ll have the government run the whole show? Remember what history teaches us about centralized decision making?
So?!?
Well, not all is lost while there’s still hope!
Let me rearrange the arguments.
We not only live in an inherently limited space, with inherently limited resources, but we’ve also finally started to understand our predicament. Which calls for as much efficiency as possible.
Only for a different kind of efficiency than that we’ve accustomed ourselves to.
Until recently, we’ve been trying to get as much money under our belts as possible. Without much regard for anything else.
That’s why we’ve been cutting down secular forests, feeding almost all the fish we’ve been pulling from the oceans to the domestic animals we were raising for their meat, polluting our breathing air, selling our fellow humans which happened to had a different skin color than ours into slavery… As if there was no tomorrow…
Slowly, we’ve started to realize that this won’t work for very much longer.
That no matter whether we’re responsible for the global warming – or if it’s real at all, sooner or later we’ll exhaust the planet.
OK, it is highly plausible that we’ll discover/learn to use new classes of resources.
But this eventuality doesn’t constitute, in any way, a valid reason for us to continue squandering the meager resources we have at our disposal.
Hence the need for increased efficiency.
Only this has to be a different kind of efficiency. The kind that focuses on minimizing waste instead of maximizing profits. The kind that recycles because it makes obvious sense, not because it is cheaper.
Along the same path we’ll discover that it would make a lot of sense to help the less developed nations to catch up with the most advanced ones.
For starters, because the ‘advanced economies’ no longer need cheap workers. They use robots instead.
Secondly, because better living people tend to have less children than those struggling to survive. And we’ve already agreed about the planet being rather limited…
Nothing too fancy… until now, right?
Well, the next item will be trickier..
Remember that Ford had raised dramatically the wages he paid to his workers?
With tremendous results?
OK, his reasons were not the ones, generally but erroneously, attributed to him.
He didn’t do it to ‘encourage’ his workers to buy cars from him… or because of philanthropy…
“Actually, it was the turnover of his staff.
At the time, workers could count on about $2.25 per day, for which they worked nine-hour shifts. It was pretty good money in those days, but the toll was too much for many to bear. Ford’s turnover rate was very high. In 1913, Ford hired more than 52,000 men to keep a workforce of only 14,000. New workers required a costly break-in period, making matters worse for the company. Also, some men simply walked away from the line to quit and look for a job elsewhere. Then the line stopped and production of cars halted. The increased cost and delayed production kept Ford from selling his cars at the low price he wanted. Drastic measures were necessary if he was to keep up this production.”
But, whatever Ford’s reasons were, the long term results have been abundantly clear.
Nowadays people who build cars are being paid well enough to afford buying the same kind of cars they are building. At least in the advanced economies…
What happened was that Ford, in order to keep the assembly line going, paid his workers as much as he afforded to. With spectacular results.
While nowadays most employers tend to ‘compensate’ their employees with as little as possible. Which makes perfect economic sense… doesn’t it?
The same economic sense which used to drive us into “cutting down secular forests, feeding almost all the fish we’ve been able to pull from the oceans to the domestic animals we were raising for their meat, polluting our breathing air, selling our fellow humans which happened to had a different skin color than ours into slavery… As if there was no tomorrow…”
See what I mean?
Instead of attempting to mandate a ‘Guaranteed Basic Income’, calculated by the central government and financed through forcefully levied taxes, how about hiring as many people as it would make sense, let them work as little days per week as they want and pay them as much as we can afford to instead of programmatically replacing as many of them with robots and paying the remaining ones as little as we possibly can?
OK, some of us won’t get as rich, as fast, as our grand-fathers did… So what? None of us can eat even close to what our grand-fathers used to… and food is a lot cheaper, anyway…
This is would be a considerably shorter way to get more people out of poverty than any scheme concocted by any government and it would have the same snow-ball effect as Ford’s wage increase had.
Economists describe this as Rostow’s ‘take off effect’.
“For attaining adequate finance for take off it is necessary that:
(a) The community’s surplus over consumption does not flow into the hands of those who will utilize it by hoarding, luxury consumption or low productivity investment out-lays;
(b) Institution for providing cheap and adequate working capital be developed;
(c) One or more sectors of the economy must grow rapidly and the entrepreneurs in these sectors must plough back a substantial portion of their profits to productive investment; and
(d) Foreign capital can profitably be utilized for building up social and economic overheads.”
Obviously, any attempt to instate a guaranteed basic income, (except for those too young, too old or otherwise un-able to pull their weight, of course) would grind any ‘take-off’ to a stand-still.
And no, getting people out of poverty is not a valid goal, per se.
Poverty is a relative thing, which relies more on feelings than on hard reality.
The real problem with poverty is that it reduces the ability of poor individuals to lead meaningful lives. Poor people are a lot less autonomous than self sufficient ones, meaning that decision making ability is impaired by the fact that they need to focus their attention on the short term time span.
This whole thing has long term consequences on societal level.
Remember what I said about centrally planned socialist countries constantly failing.
About all dictatorships eventually crumbling under their own weight, because of too much decision power being concentrated in too few hands?
Excessive wealth polarization produces the same results. Economic decision becomes too concentrated, political decision follows through and…
What next?
The world has already experimented with communism. Didn’t work.
It also experienced two economic meltdowns, exactly when wealth polarization was at relative peaks.

When are we going to learn anything from what happens to us?
Why do we continue to waste the accumulated lessons collectively known as ‘history‘?
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