A Universal Basic Income (UBI) could help combat the significant challenges of rising living costs and technological unemployment. The current dynamic of meeting basic survival needs is tightly linked to employment due to the necessity of earning money. But what if our basic needs were covered and we had more options to pursue work we are passionate about, volunteer, or raise kids? What if automation continues to increase, and humans are no longer needed to perform work? Should we divorce employment as the means of covering our basic needs and what does this new system look like?

Technological unemployment has hit the manufacturing mecca of Detroit hard and has led more people to the sunny service economy in San Diego. Detroit’s manufacturing employment was 45% in 1950, but it dwindled to 27% by 2000. This transition intensifies the demand for jobs and affordable housing in San Diego, currently ranked as the country’s most expensive city to live in.

A global survey of experts in machine learning suggests that in 120 years all human jobs will be automated. In 45 years, half of the jobs currently filled by humans will have been taken over by an artificial intelligence system, results indicate. For freshly unemployed individuals who have lost their jobs due to advances in technology, the odds of finding a new job within a given month in the first 6 months are 1 in 4, dropping to 1 in 10 beyond this period.

Despite these challenges, technological development has played a crucial role in lifting over a billion people over the extreme poverty line, or anyone living on less than $2.15 a day as of 2017. According to the World Bank, extreme poverty has seen a remarkable decline from 1 in 3 people in 1990 to 1 in 10 as of 2016. Meeting the Millennium Development Goal to halve extreme poverty was achieved five years ahead of schedule, and the World Bank anticipates functional eradication of extreme poverty by 2030.

Supporting the implementation of a Universal Basic Income (UBI) and continuing ongoing subsidies for those in need, such as food stamps, can enable individuals with low incomes to afford essential items while restricting purchases of cigarettes and alcohol. Significant advantages and minimal drawbacks exist in making housing more affordable or providing cash assistance for crucial expenses like housing. Although concerns about dependency exist, it’s crucial to recognize that most people are driven to work hard, contribute to society, and find purpose in their lives. Moreover, making healthy food, education, and housing more affordable and implementing UBI can enhance the tax base, reduce healthcare costs, and potentially offset the investment.

References

1. Annie Lowrey. “Give People Money: How a Universal Basic Income Would End Poverty, Revolutionize Work, and Remake the World”. Crown, 2018.