Growing global trends favor automation over human labor — Image via Wikipedia, CC 2.0

Technology is defined by the Oxford Dictionary as “the application of scientific knowledge for practical purposes, especially in industry”, and the ability to gain and utilize scientific knowledge is an important aspect of what separates humans from other animals. In the past, the application of scientific knowledge has lead to huge advancements in the quality of life. (Simpson, 1989, 684) From the mastery of fire by protohuman hominids resulting in increased muscle mass and mental capacity to the advent of the computer era revolutionizing current business practices, technology has greatly shaped the way that we interact with the world which is around us, and time and time again this has resulted in a very clear and highly specific advantage: less work resulting in a greater benefit. (Isaac, 1978, 109) The general decrease in the amount of manual labour necessary for survival from the dawn of humanity to the modern age could be considered to have a beneficial effect on human culture, as it has freed up many potential laborers to instead pursue education and scientific discovery.

In the coming future, however, there may be a rising detriment to the labor economies of the world as automation and mechanization replace previously human-performed labor-related tasks for the sake of cost-efficiency. According to The Economist it is estimated that 47% of jobs will be automated by the end of the year 2034, which means a vast reduction in traditional labor positions. (Rundle, 2014) While this could mean incredible things for the future of humanity, it also poses a clear and certain danger: unemployment rates could skyrocket, leaving millions in the category of under-employed or worse, entirely unemployed. The solution to the problems faced by the potential drastic rise in levels of underemployment and unemployment posed by automation could be a concept called Basic Income, which is a government-sponsored guaranteed minimum income given to all citizens of a given country, which meets the costs of an agreed upon basic standard living. (Global Basic Income Foundation, 2014)

BASIC INCOME AND THE ERADICATION OF POVERTY

Basic Income could be the solution to the problems caused due to automation-related job loss for several reasons, the first of which being that it will force institutions to establish a standard of life for citizens and therefore eradicate poverty by meeting the basic needs of these citizens. (Global Basic Income Foundation, 2014) By ending poverty many benefits for society are possible, including (but not limited to) potentially lowering crime rates, lowering costs associated with mental health care, and boosting the success of educational programs. (Pagani, 2003, 1209–1212)

Homeless in New York, Wikipedia

In a relevant context this means the eradication of poverty could, in theory, result in higher overall levels of education within the given country as educational standards are directly tied to levels of poverty. According to a UNESCO study: “It is widely agreed that the relationship between poverty and education operates in two directions: poor people are often unable to obtain access to an adequate education, and without an adequate education people are often constrained to a life of poverty.” (van der Berg, 2013) By directly eliminating this massive obstacle to education a stronger educational foundation becomes possible. Therefore, it stands to reason that should poverty be eradicated, citizens will be able to use this foundation to allow them to attain higher levels of post-secondary education, and thus more gainful, skilled, employment in non-labor markets, which will be less affected by declining job availability in that area.

The shift towards more highly-educated persons within a country is likely to affect the economy of that nation positively. (Lee, 2001, 465–488) With a stronger economy a nation is better able to secure its future in a world plagued by uncertainties and rapidly changing global situations, thus (transitively) one can see that higher levels of education and lower levels of poverty are extremely beneficial for all members of a given society.

BASIC INCOME AND THE REDUCTION IN UNEMPLOYMENT RELATED ILLNESS

Basic Income may also be the solution to many woes caused by underemployment and unemployment due to job automation because it has the potential to reduce the financial and emotional strain on families which are directly affected. Unemployment, for a variety of reasons, frequently leads to conditions of depression, anxiety, helplessness, and anger in those who are affected and their families. (Delaney, 2014) Unemployed workers who have experienced some amount of depression or anxiety throughout their career (should they be able to find employment once more) commonly exhibit life-long detrimental effects to their workplace productivity and efficiency, as well as an increased propensity for experiencing depression and anxiety disorders later in life. (Beck, 2011, 305–311) This decrease of productivity is harmful to the economy. This may be offset, however, by a guaranteed Basic Income that reduces the financial burdens on the unemployed, thus alleviating many work-related causes of mental health disorders and ensuring a higher quality of life for citizens affected by the Basic Income Initiative.

In countries such as the United States of America, where workers are frequently covered by health insurance plans paid for by their employer, unemployment and the subsequent loss of health insurance may also result in a decrease in overall physical health, as persons afflicted with injury, disease, or illness will be less likely, or less able to seek proper medical care due to the cost of treatment. In these situations it is possible that adverse effects of not seeking proper medical treatment for injuries, illnesses, and diseases could result in an inability to work, or even lifelong disability. In the case of lifelong disability it is quite possible that one who is afflicted may not return to the workforce, leading to a net loss of value added to the economy by that individual.

Should a Basic Income be implemented, citizens covered by the initiative and their families would have less financial and emotional strain due to unemployment, and thus a greater likelihood of avoiding dramatic physical and mental health disorders associated with (or perhaps even caused by) underemployment and unemployment. In this case, a healthy, happy worker is a productive worker, and productive workers bode well for the economy.

AS A TOOL FOR THE PROMOTION OF ENTREPRENEURSHIP

Finally, a Basic Income initiative would be an incredible tool for alleviating problems caused by automation-related unemployment because the financial security provided would likely encourage entrepreneurship. According to a recent academic study, one common reason capable persons do not pursue entrepreneurial pursuits is due to the potential financial risks associated with failure. (Gaspar, 2011) It stands to reason that if this risk were to be mitigated by a Basic Income initiative more of those within the category of persons capable of entrepreneurship would pursue this avenue of employment.

Entrepreneurship is an important part of the modern economy, and it has been effectively proven in empirical literature that economic growth and health are directly related (in a small but appreciable way) to the number of entrepreneurs within a given economic segment. (Ekmekcioglu, 2013) In the future, should automation lead to a decrease in labor-related employment, entrepreneurship may be the answer for putting those members of the workforce who become obsolete due to automation back to work in economically stimulating positions.

BASIC INCOME IS THE FUTURE

In conclusion, one can see that the changing state of technology in the work environment and the growing trend towards automation will result in a large loss of employment in labor-related positions, and governments are woefully unprepared to deal with this situation. A strong case for an effective solution to the problems presented by large-scale underemployment and unemployment is a Basic Income initiative. This initiative could be effective in many ways, but specifically because it could be used to eradicate poverty (resulting in greater educational achievement), maintain workforce readiness by ensuring workers stay mentally and physically capable during periods of unemployment, and maintain and grow economies by promoting entrepreneurship due to a net decrease in the amount of financial risk of entrepreneurial pursuits.

U.S. Eastern Seaboard at Night from the ISS — NASA’s Earth Observatory, CC2.0

The global economic climate is changing rapidly as it attempts to make use of new and developing technology, but with hard work, great determination, and potentially a little help from the Basic Income initiative, humanity may be able to solve the problems posed by underemployment and unemployment due to automation through the application of scientific knowledge in areas of human welfare and economics.

ABOUT THE AUTHOR

Steve Stewart, Head of Communications — Dreamloop Games

Steve Stewart is a proud U.S. Navy Veteran, an ex-pat living in Finland, and founder and Head of Communications for Dreamloop Games. He is a strong proponent of basic income, and a firm believer that the future of marketing, public relations, and communications are intertwined around beautiful, awe-inspiring, and fun content. Follow him on Twitter at @ThatDarnSteve.