Posts Tagged ‘invention’

Guaranteed Basic Income

February 16, 2017

Guaranteed Basic Income is becoming a popular topic of conversation in the news.  It is the idea that everyone, regardless of what he or she is doing (working, unemployed, etc.) is given a basic salary, just for breathing air.  The idea is that this system could replace our broken welfare system and cut out some of the overhead associated with fraud detection, and perhaps get more money to people who need it the most.

It doesn’t take a lot to see how this is just another socialist scheme.  Where does this money come from?  The government, through your taxes.  Before, we had to give the benefit of the doubt to welfare recipients, and assume that they were working or trying to find work.  Under Guaranteed Basic Income, no such assumption can be made.  You can literally be taxed to support those who do NOTHING.

Some of the smartest advocates of Guaranteed Basic Income argue that automation, not foreign competition has taken away jobs.  True, many of the manufacturing job s that have been lost over the last few years will never come back, as a machine is performing the task.  These same people argue that nearly half of all people risk losing their jobs to machines in the next ten years.  It sounds like we will all be at risk for being unemployed, and had better come up with a plan.

There are two flaws in this logic.

First, consumer goods can only sell for the price that someone is willing to pay for them.  If the entire nation is unemployed, there will be no purchasing of consumer goods, and the prices will drop. Under this doomsday scenario, eventually, people will have to produce their own goods, or at some point, it will be cheaper to hire labor again than to invest in machinery.  At least under the free market.

Also, the assumption that all things will be created entirely by machine, and, that there is nothing left to create.  The flaw is that human beings are creative, and machines are only as creative as their programmer allows.  If people have creaed machines to handle their mundane tasks, it frees up more time to be creative and invent even newer things.  Once the production of that new idea has been automated, they can move onto something else.

A guaranteed basic income’s only actual purpose is to allow folks to do nothing except consume resources, and somehow collect a paycheck.