Recent advances in automation, artificial intelligence and robotics have experts, politicians and economic advisors concerned about the future of society. These technological advances have already impacted the manufacturing industry, and it’s likely that they will lead to further job losses in the future. Governments around the world are not blind to these facts, and many are pondering implementing a universal basic income to combat the pending robot job take-over.
In 1996, around 14 percent of the workforce in the United States was employed in the manufacturing industry. Today, that number has dropped to only eight percent, yet the industry’s workers are producing over 47 percent more than they were twenty years ago. The development of automation, robotics and advanced manufacturing have caused this industry to become more productive while utilizing less human laborers.
Robots are slowly becoming more capable of performing advanced tasks than humans. Recent surveys conducted by the Pew Research Center show that 48 percent of industry experts think robotic advancements will likely replace a significant number of jobs by 2025. Unfortunately for their human counterparts, robot workers are now safer, more reliable and more efficient at an increasing number of tasks.
Politicians, economists and technology enthusiasts around the world have already deeply considered the impacts of the inevitable rise of automation in industries across the board. Elon Musk, one of the most wealthy and famous tech investors, has argued for some time that the only answer to this robot take-over involves adopting a universal basic income for human citizens.
A universal basic income describes a payment made from the government to individuals that would support basic expenses. Ideally, this income would provide for basic nutrition and shelter for every person. Many supporters of this vision believe that providing for everyone’s basic necessities will lead to a more productive, healthier and happier society. It’s likely that humans will devote more time and energy into forming social bonds, pursuing higher education, eating healthier and moving towards a better life.
In the United States, a UBI of $10,000 a year would cost about $3.2 trillion to distribute among the population. With so many people out of work, many wonder where the money will come from to pay citizens. Most experts theorize that society will need to begin taxing robots in order to implement a basic income for humans. Other sources for funding would likely come from decreases in military spending, carbon taxes, resource-based revenues and other areas.
Universal Basic Income trials and studies have already been tested around the world including areas like France, Switzerland, India, Kenya, Finland and the Netherlands. Alaska has had its own form of basic income since 1932 called the Permanent Fund Dividend. A basic payment, which various based on market fluctuations, is derived from investments of the Alaska Permanent Fund. Researchers showed that Alaskan citizen’s spending and savings both increased around the time that payments were made, poverty was decreased and less than one percent of the population chose to work less because of the extra money.
Ontario, Canada is planning on implementing their own universal basic income program. Hugh Segal, one of the Canadian Senate’s former members, authored a paper suggesting that the payment should be at least $16,989 each year per adult . Ontario used this paper along with expert advice from over 40 professionals and public consultation. While the basic income idea has its critics, the Canadian government has stated that most feedback has been supportive of the economic initiative.
California is also experimenting with a basic income plan called the Stockton Economic Empowerment Demonstration. A random 300,000 residents of Stockton will start receiving a payment of $500 a month. Funding for this project comes from the Economic Security Project who hopes to test the viability of regular payments as a global tool for aid.
It’s clear that automation will lead to further job loss in the manufacturing industry. Experts, politicians, world leaders and economic advisors around the globe have considered implementing a universal basic income as a solution to these rapidly increasing technological advances. This economic idea is already being tested in countries, and these real-world trials have provided positive evidence supporting the notion of a universal basic income. While the idea certainly has its critics, the economic theory may have to be made into a reality sooner rather than later if robots continue to advance at the rate they are.
