Charles Hugh Smith – Readers have been asking me what I thought of Universal Basic Income (UBI) as the solution to the systemic problem of jobs being replaced by automation.To answer this question, I realized I had to start by taking a fresh look at work and its role in human life and society. And since UBI is fundamentally a distribution of money, I also needed to take a fresh look at our system of money.
That led to a radical critique of Universal Basic Income (UBI) and an outline for a much more sustainable and just system of money and work than we have now. To adequately explore these critical topics, I ended up writing a 50,000 word book, Money and Work Unchained.
Universal Basic Income (UBI) is increasingly being held up as the solution to automation’s displacement of human labor. UBI combines two powerful incentives: self-interest (who couldn’t use an extra $1,000 per month) and an idealistic commitment to guaranteeing everyone material security and reducing the rising income inequality that threatens our social contract–a topic I’ve addressed many times over the past decade.
UBI’s goals–guaranteeing material security and reducing income inequality–are not just worthy; they are essential. The question then becomes: how do we achieve these goals?
The conventional critiques of UBI focus on the practicalities of funding such a substantial universal entitlement. Where will the trillions of extra dollars required come from? Can we pay for UBI by “taxing the robots” or borrowing/ printing more currency?
But a radical critique must go much, much further, and ask: is UBI the best that we can do? If we provide the basics of material security–the bottom level of Maslow’s hierarchy of human needs–what about all the higher needs for positive social roles, meaningful work, and the opportunity to build capital?
This critique reveals the unintended consequences of UBI: rather than deliver a Utopia, UBI institutionalizes serfdom and a two-class neofeudalism in which the bottom 95% scrape by on UBI while the top 5% hoard what every human wants and needs: positive social roles in our community, meaningful work that makes us feel needed, and the opportunity to build capital in all its manifestations.
UBI is the last gasp of a broken, dying system, a “solution” that institutionalizes all the injustices of serfdom under the guise of aiding those left behind by automation. We can do better–we must do better–and I lay out how to do so in this book.
A radical critique must also examine the widely accepted assumption that automation will destroy most jobs. Is this assumption valid? It turns out this assumption rests on a completely false understanding of the nature of work, the economics of automation and the presumed stability of an unsustainable global economy.
Read the first section for free in PDF format.
SF Source Of Two Minds Dec 2017
Charles Smith has presented interesting concepts re; basic income. Here are my thoughts.
This is based on our present economic system, designed to basically enslave. When we go the what our constitution states, no slavery exists including taxation on a national level is not necessary.
Our education system does not inspire, it is designed to condition following direction and rules. With the slaving economy and people who have not understood the magic of focus on all and anything one is doing, we have a population of robots conditioned to mostly unwillingly take on “work” to ameliorate their condition of scarcity foisted from above.
All work whether whether for money or not, can be a blessing when the individual understands, deep focus and its magic acquired thru understanding this resulting from simple education during formative years. We, then, have a population alive and functional instead of victimized as the result of dysfunctional up bringing.
A stipend, which is not financial problem when we follow our constitution, must be a slim bare minimum, one which allows for survival and not more. This removes the angst of existence, an angst which is driving a large majority, resulting from our present world wide economic system.
In this environment people will be looking to increase their money supply in order to have a life which containing more than the bare minimum.
Entrepreneurs will think up businesses to have more, thereby creating jobs for people who also want to have more and may not be as creative. In this model everyone is busy creating more for themselves and for the world around them.
Most important, here, is, the money lent to the entrepreneur comes from the country’s governing body, ALONG with an advisor, assuring the success of the business. The money is in the form of a loan which inspires production and success.
Because everyone is working in order to enjoy life on more physical and emotional levels, to have more and understands the magic of focus, people will experience the joy of contributing, the joy of accomplishing whatever together; thus, inspiring those who may still be holding back from wanting to work for more.
This model takes a bit of time, and, we must begin.
Hi Ben, you express some very interesting ideas in this comment. However, it does not address the FUNDAMENTAL point of Smith’s article which is that people – quite a few of them – are fundamentally LAZY. If they are given what they need to survive they are perfectly happy to leech off the system, even though it is hardly stimulating or satisfying. That has been proven time and time again with welfare roles and recipients. The vast majority will do nothing as long as basic needs are met. And that’s a fact.