Seamless loop, 3D animation of Universal Basic Income concept. Government public program … [+]
Experts Evelyn Forget, Guy Standing and Carl Widerquist offer a path to a more inclusive and resilient world.
As artificial intelligence and automation continue to reshape the global job market, societies around the world are grappling with serious economic and social challenges. Recent major staff reductions: Announcements like those made by companies like Tesla, Google, Microsoft, Nike and Amazon underscore the urgency of a solution: Nearly 40% of business leaders expect to make job cuts this year, and nearly four in 10 plan to replace employees with AI.
Rapid technological advances raise important questions: Will there be enough jobs? And who or what will fill the positions that are lacking? The ability of AI to perform current human functions will lead to job replacement. Young people are already facing Anxiety and mental health issues With alarming speed, humans will find themselves competing with machines for fewer jobs, which will likely exacerbate the mental health crisis. Could a Universal Basic Income provide the stability and purpose needed to reduce social polarization? Leading experts demystify the concept and offer advice on implementing a UBI.
Issue: Mental health and education in the age of automation
One in seven adolescents worldwide experience mental illness, affecting their education and overall health. whoHarvard University researchers A major study of higher education in 2023 by Howard Gardner and Wendy Fishman They found that students often face mental health problems and feelings of alienation. They argue that higher education in the United States has lost sight of its raison d’être, which is not to provide vocational training or campus amenities, but to increase what they call “higher education capital” — helping students think broadly, express themselves clearly, explore new areas, and be open to possible change. This holistic development is essential to prepare students to navigate the complexities of a rapidly changing job market and society.
AI and automation won’t eliminate jobs entirely, but they will create demand for skills that are different from those emphasized in today’s education system. Evelyn Forgetis a world-renowned economist known for her work on health and social policy. “There is a huge mismatch between the skills workers bring to the market and the skills needed for new jobs,” she explains. Forget argues that a UBI could provide these workers with the financial stability they need to retrain and adapt to new industries, adding that “a UBI could give some workers the time to go back to school and learn new skills, and allow older workers to transition into retirement with some dignity.”
Standing man, He is a well-known economist, The Politics of Time: Gaining Control in Times of UncertaintyStanding highlights the destabilizing effects of economic inequality and insecurity. “The AI revolution will intensify the flow of income and power to the property owners, leading to anxiety and existential fear for a new class known as the precariat,” he writes. He argues that a UBI would provide a financial safety net to alleviate these problems, allowing individuals to pursue meaningful activities and reduce the mental health problems that arise from economic stress.
By providing economic stability, a UBI could have a significant impact on education and mental health, adds Carl Widerquist, a political theorist, author, and economist at Georgetown University in Qatar. “Research shows that a UBI helps kids stay in school and do better in school. It also helps people have the time to find the right job that best utilizes their talents,” Widerquist explains. He emphasizes that a UBI could reduce the economic pressures that exacerbate mental health problems and impede educational achievement.
How to implement UBI: Strategies from leading experts
Implementing a UBI requires careful planning and sustainable funding mechanisms, and Forget, Standing, and Widerquist present ideas on how governments can deliver this transformative policy.
Funding structure
Widerquist explains that UBI is more affordable than it looks because it functions as a refundable tax credit. “The real cost is the net cost – the difference between the taxes people pay and the amount they receive in UBI,” he adds, estimating this net cost to be around 3% of GDP. He advocates funding UBI through taxes targeted at the top 1%, such as land value, resource and rent taxes, wealth taxes and higher income tax rates on the wealthy. “You could potentially raise more than 3% of GDP just by reducing perks to the donor class,” he suggests.
Standing proposes developing an “eco-fiscal policy” that would include the creation of a Commons Capital Fund, funded by a tax on activities that harm ecosystems or lead to the loss of commons resources. “A Commons Capital Fund (a type of sovereign wealth fund that exists in over 80 countries) should be established and funded by a tax on activities that harm ecosystems or lead to the loss of commons resources,” Standing suggests.
Forget says UBI should be integrated into existing social welfare programs. “Integrating UBI into existing structures will minimize the bureaucratic obstacles that impede social welfare programs,” she advises. This phased approach will help manage the transition and address potential economic disruptions.
Phased implementation
As for an approach to gradually or incrementally introducing UBI, Widerquist points to the Alaska model. Use oil revenues to fund a small UBI For the people. “We could have done the same thing when we legalized marijuana or gave away broadcast spectrum,” he notes. He also highlights Oregon’s efforts to impose a corporate tax to support a small UBI. “Reducing the power of the donor class in politics is crucial to implementing a UBI,” Widerquist adds.
Economic and social benefits
Both Standing and Forget emphasize the broader economic and social benefits of a UBI. Standing argues that a UBI could provide a financial safety net that reduces economic insecurity and inequality while also allowing individuals to pursue meaningful activities. “Most people work because they need an income, not because they find their work rewarding,” Standing asserts. A UBI would allow individuals to pursue meaningful activities, resulting in a more engaged society.
Forget points to the social and health benefits documented in a 1970s Canadian “basic income” experiment, which reduced hospitalization rates by 8.5% among participants. “Basic income could significantly reduce health care costs,” he says. Economic stability also allowed families to prioritize education, breaking the cycle of poverty.
UBI and mental health: the vital connection
According to a report by the Resolution Foundation, more than a third of young people aged 18 to 24 experience common mental disorders such as depression and anxiety. Poor mental health prevents young people from succeeding in education and the labor market. Standing emphasizes the importance of addressing this crisis. “Anxiety breeds fear and creates a tendency to listen to demagogues who promise to ‘bring back yesterday.’ Basic income could help reverse this trend by giving young people the reassurance they need.” Evelyn Forget added, “Mental health problems are exacerbated by economic stress. Basic income could provide the stability young people need to focus on their education and personal development.”
Overcoming misconceptions about UBI
Despite its potential, there are some misconceptions about UBI. Critics claim it is expensive, discourages work, and “gives you something for nothing.” But Standing’s research and numerous UBI pilots around the world debunk these myths. “The evidence is that UBI increases labor force participation and improves mental health and education outcomes,” he says. Examples mentioned by Standing and Forget include Finland’s basic income experiment (which provided an income to 2,000 unemployed people over a two-year pilot, reducing stress and increasing employment levels), Kenya’s Give Directly pilot (which provided a basic income to 20,000 people in rural Kenya, improving happiness and entrepreneurship), and California’s Stockton Economic Empowerment Demonstration (SEED), which provided $500 per month to 125 residents, improving economic stability and employment.
Karl Widerquist addresses another common criticism, the misconception that “people don’t want to work.” He argues that “the problem has never been with lazy workers. It has always been with shoddy endowment class employers who lobby governments to force people into situations where they have no choice but to accept poverty-wage jobs. To build a free society, we need to end this now. A UBI can do that.”
The economic impact of UBI
Widerquist believes that a UBI would have a positive impact on economic growth and inequality. “UBI has a very positive impact on inequality. The net effect of a tax targeted at the 1% and a UBI for everyone would immediately increase equality,” he explains. As mentioned above, studies have shown that a universal basic income would help children stay in school and improve their academic performance. Additionally, a UBI would allow individuals to secure jobs that match their skills and talents.
Next steps
To harness the potential of UBI as a transformative tool, policymakers should focus on the following strategies:
- Phased implementation: Integrate UBI into existing social programs to minimize bureaucratic obstacles.
- Supporting education and skills development: Ensure that UBI provides the economic stability needed to continually learn and adapt.
- Promoting mental healthRelieve economic stress through UBI and address the youth mental health crisis.
- Sustainable Financing: Establish environmental fiscal policies to fund UBI sustainably.
Looking to the future, integrating a UBI with comprehensive education and social reforms can help build a society that values human dignity, purpose, and collective well-being.
