So yes, automation is coming, and it’s putting millions of Americans out of work. So why is UBI the best way to combat this problem?

One of the primary arguments against UBI is that we should retrain displaced workers so they can get jobs in fields where new careers are abundant (e.g. technology). However, government retraining programs work 0–15% of the time at best. Retraining programs are slightly more effective if people can seek them out on their own, and UBI would allow many to do this without worrying about how they’ll pay their rent in the meantime. Retraining is ineffective and not a viable option for the government to rely on when we’re trying to find tens of millions of new jobs for Americans.

So won’t there be new jobs created in other fields of work? Yes, but the jobs being created are not enough to outweigh the jobs being lost to automation and these new careers will not be accessible to the average unskilled laborer who’s most at risk of losing their current job to automation. The new jobs being created in places like technology are not the kind of jobs a middle-aged trucker or retail worker is likely to get.

We’ve already seen what’s happened in the manufacturing sector where around 5 million jobs in the Midwest were automated away between 2000 and 2010, and it’s projected that 20 million manufacturing jobs will be lost by 2030. So what happened to these people who lost their jobs? Half of them filed for unemployment and half of those people filed for disability. Right now it’s pretty bad. People are temporarily out of work but at least they know that in a few months they’ll be getting back to work and receiving a paycheck again. Imagine if a third of all Americans were permanently put out of work. There would be fewer customers spending money in local businesses, fewer entrepreneurs starting businesses, cheaper school budgets being passed, life expectancy drops, we’ll see increased suicide rates, and increased incarcerations as people become more desperate. People would resort to eating cheaper and more unhealthy foods. Our stock market would tank when investors see that a third of all American workers don’t have a penny to spend on anything but essential goods. Unions will organize to protect their careers from being automated, and civil unrest will become inevitable.

This is why people in Silicon Valley who are developing technology that puts people’s jobs at risk support a UBI. Elon Musk, Richard Branson, Ta-Nehisi Coates, and many other forward thinkers have thrown their support behind a UBI.

Giving $1,000 to every American citizen over the age of 18 every month may sound like a gimmick that’s too expensive to execute. However, the truth is that not only can our country afford this, but a UBI in practice would end up paying for itself and more. Basic income is an economic floor for our people to stand on. Once implemented it removes the need for certain punitive cash assistance social programs. UBI would be opt-in, allowing welfare recipients to remain on their current programs if they wish. If they do decide to give up their current benefits in exchange for UBI, they will never get less for making more, while in many welfare programs there’s a maximum amount of money you can earn until you get kicked off. Most people will switch because $1,000 a month is more than almost every welfare program provides. UBI will be paid for by reduced costs in the government in other more abstract ways as well. We will spend less money on homelessness, healthcare, crime, and bureaucracy, allowing us to remove the source of many of these problems with only a single policy. These streamlined budgets will begin to cover the overall cost of a UBI. A Value Added Tax (VAT) is how we fill the gap.

Amazon Warehouse

The companies primarily responsible for the oncoming wave of automation are tech startups based in Silicon Valley, (Facebook, Google, Uber, Amazon, etc.) These companies are automating away millions of jobs, making billions in profit and paying nothing in taxes. If we tax these corporations at just half the rate of Europe’s VAT, it would allow the American people to capture a sliver of the profits from every robot truck mile, digital advertisement and all the other tasks being given to machines. A Value Added Tax averaging at about 10%, focused more heavily on luxury commodities and lowered for necessities, creates a path forward for fair and doable wealth distribution in America as well as a way for the public to reap the benefits of automation and technology. Since a VAT is a point of sale tax, it is impossible to not pay it, unlike a wealth tax. Any inflation that may be speculated to occur from UBI or a VAT will be canceled out by savings. Businesses won’t need to raise prices because the money they’re losing to the tax will be made up with savings from automated jobs and increased revenue from people having more money.

So yes, we can easily pay for a UBI, but why is a UBI the best way to address this problem.

UBI doesn’t just address the problem of automation. It’s money that people can spend however they wish. UBI will lower crime rates as those who commit crimes out of desperation will be given money to keep themselves afloat, which will also incentivize them to stay out of jail because they won’t receive it if they’re in jail. Some people will invest the money into primary health care, and early detection of a health problem allows for better and cheaper treatment. UBI would force landlords to lower rent since tenants will feel more confident in moving locations if they feel that their rent is too high. UBI will help some families save for college, and it could help some college graduates pay off their remaining debt. UBI is the only plan that takes into account stay at home parents and starts paying them for their work. With UBI more school budgets will be passed and more parents will feel confident in spending more time at home with their kids. Kids see better results in school when the conditions at home are improved. More people will start to volunteer in their communities and make donations to charity. People will be confident in pursuing their passions and starting businesses. Since UBI encourages people to start businesses and also boosts small businesses in local communities more jobs will be created as well.

The Coronavirus pandemic is only accelerating the automation of jobs. Companies are starting to invest money into robots that perform human tasks because of the stay at home orders and social distancing guidelines. The 73 million American jobs at risk of being automated are going away sooner rather than later. Not only will a UBI solve a wide array of problems in our country, but it will also make our people happier and more prepared for the problems that lie ahead. Currently, the popular solution is to implement UBI for the duration of the pandemic and to discontinue it once we are reopened. It’s better than nothing but permanently giving Americans $1,000 every month is needed to keep people afloat and to revitalize the economy after the virus is contained. If something like this were to happen again people would already be getting checks from the permanent UBI.