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Money for nothing: is universal basic income about to transform society?

Jul 15, 2024 - news.bensbites.com
The article discusses the concept of universal basic income (UBI) as a potential solution to job losses caused by the rise of artificial intelligence (AI). It highlights various pilot schemes around the world, including one in Ireland where artist Elinor O’Donovan receives a guaranteed salary from the government, allowing her to focus on her art. The article suggests that UBI could provide a safety net for those whose jobs are threatened by AI, and could lead to people doing more fulfilling or socially useful work.

However, the article also notes obstacles to implementing UBI, such as the refusal of the UK's HMRC to exempt participants from income tax. It suggests that the resistance to UBI may be ideological, but that the rise of AI could force a change in thinking. The piece concludes by suggesting that AI companies, rather than governments, could end up providing UBI, and that there is a strong moral case for introducing UBI to address economic insecurity and historical injustices.

Key takeaways:

  • Elinor O’Donovan, a 27-year-old artist, is part of a basic income pilot scheme in Ireland where she receives a guaranteed salary of €1,400 (£1,200) a month until September 2025, allowing her to focus on her art.
  • As artificial intelligence (AI) continues to advance and potentially displace human jobs, the concept of universal basic income (UBI) is gaining traction as a possible solution.
  • Studies have shown that UBI can lead to increased participation in the labour market, with recipients more likely to find and accept long-term, well-paid jobs and engage in more socially useful activities.
  • Despite enthusiasm for UBI pilots in the UK, obstacles such as income tax exemptions and compensation for affected benefits make these schemes more expensive than in other countries. However, the rise of AI and potential job losses may prompt a radical change in thinking.
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