Welcome to a new weekly feature that I’ll be writing called Liberal Agenda. Here we’re going to explore potential alternatives to current political or economic systems, and hopefully get a conversation started. This week’s topic is:
Universal Basic Income
What is Universal Basic Income?
Universal Basic Income (UBI) is the idea that all citizens get an unconditional fixed income from the state, given independently of any other income, even if a person is employed. There are two different types of UBI; full or partial. Full basic income is sufficient to meet a person’s basic needs (at or above the poverty line), while partial is less than that amount.
There is also another similar welfare system known as negative income tax. Much like UBI, it guarantees all citizens of working age a certain amount of regular income, where the amount received is dependent on that person’s income from other sources such as employment.
How does it work?
UBI would work much like existing welfare systems already in place, for example here in the UK the government has already been trying to get a more streamlined welfare system in place called Universal Credit. This is a payment to help with a person’s living costs, particularly if you’re on a low income or are seeking work, and is calculated based upon income as well as where you live and your circumstances. UBI takes this concept a few steps further, so instead of needing to be below a certain income or meet certain requirements, everyone gets it.
Isn't that going to be expensive?
You see, this is where things get a bit interesting. There is a large administrative cost involved with current means tested welfare systems, with governmental organisations needing to process applications, potentially interview applicants and check information against records. UBI is, in theory, a much simpler and far more transparent system that would replace existing separate welfare programmes (such as unemployment benefits, child benefits and disability benefits). In turn, this would require less bureaucratic input and would massively cut down the costs of running such programmes. Potentially, with the right technology there would be next to no need for any human input whatsoever.
Why would we need a Universal Basic Income?
With the rise of AI and robotic workforces, the gig economy, and increasingly variable incomes for the millenial and subsequent generations, UBI could be the saving grace we need. We currently live in a largely capitalistic society, however that could all change in the not-too-far-distant future. As we begin to understand the potential job losses arising from the above mentioned issues, with at least one in three jobs being vulnerable to replacement by AI or robots (according to research done at the Oxford Martin School), the need for UBI becomes clear.
We need to rethink how and why we work, workplace inefficiency and society inequalities. The right-wing media loves to harp on about benefits fraud in this country, and this would make that obsolete. We could stamp out poverty, improve working conditions and reduce bureaucracy all in one go. Infact, many right-wing thinkers are coming around to this approach.
Is anyone trying it out right now?
Yes, in fact there are quite a few examples of basic income, most notably the recent two year experiment in Finland that began in January 2017. Already in Finland, many of the 2000 participants in the scheme are claiming it has changed their lives, giving them a freedom they’ve never felt before. What UBI can do for the workforce is encourage a more artisan approach to things. With big industry being automated, we need to go back to making things, being creative and explore our own passions. It can give you the freedom to do something you really want to do, regardless of whether it pays well, or pays at all.
What does the future hold for Universal Basic Income?
The future looks fairly bright for the UBI concept. There are four local authorities in Scotland that are looking into similar plans to pilot a UBI scheme, who will all start looking at proposals at the end of March. Once the Finnish experiment is over, hopefully more governments will contemplate the notion, and help usher in a new age of post-capitalism.
There is cryptocurrency attempt at this concept, known as Swift Demand. They pay out a small amount every day to all users as a basic income, with plans to launch the platform as a fully-fledged cryptocurrency (it’s currently a closed system) being announced recently. If you would like to sign up, and why not you have nothing to lose, then I’d really appreciate it if you used my referral link: https://www.swiftdemand.com/?referred_by=johngreenfield
What do you feel about this idea? Is it something you could get on board with, or do you think it's never gonna work? Let me know in the comments down below, I really like to hear your opinions on these things. I'm currently working on a few different weekly features that I'd like to get going over the next couple of weeks, as well as getting my website back up and running (and hopefully plugged in to the Steem blockchain). As always, make sure to follow me for more Cryptocurrency, Economics and Pop Culture related posts. Peace!