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Wednesday, January 23, 2019

Universal basic income: prescription for disaster?


I have written over and over again about the necessity of socialism in order to achieve anything like real civilization in human life, and about the gross evil of extreme and growing economic inequality all over the world – the latter, I am pleased to see in a rather weary and cynical way, is beginning to grasp the attention and stir the anxiety of a lot of thinking people even in positions of wealth, power and responsibility lately – and I am much exercised by the spreading idea of putting some sort of ‘universal basic income’ (UBI for short) guarantee into place within the short- or medium term. A lot of people, from Mark Zuckerberg to Nobel Prize-winning economists to the long-serving chief minister of the tiny Indian state of Sikkim are rooting for the idea. 

Many people are claiming, very plausibly, that UBI will not only go a long way in reducing inequality, but will prove to be much simpler and cheaper overall to implement than the plethora of complex and leaky social welfare schemes that most governments currently run, give the average citizen greater choice about the way s/he wants to live life, and could perhaps be the best protection against the sort of widespread social chaos that could arise out of very large scale unemployment stemming from increasingly universal automation – something that is inevitable within the next half century, and something that is unravelling the social fabric as nothing else has done since the first Industrial Revolution began more than 250 years ago.

Why am I not too keen on looking at UBI as a panacea, then?

Firstly, because I do not think that a genuinely meaningful UBI scheme will ever be feasible within the existing capitalist order. As the professor in this article calculates, trying to guarantee a measly $12,000 a year to every US citizen – hardly a guarantor of a decent standard of living at current prices! – will call for transferring something like $3 trillion from the rich to the poor: aiming for a higher per capita figure could raise the figure to ten trillion. Does anyone believe even for a moment that the richest 1%, who control nearly 50% (or more) of the country’s wealth (conditions are more or less the same in India) could be ‘gently persuaded’ to give up that sort of money to help the vast majority live in security and decency?

Secondly, because as an ‘elitist’ from lifelong experience who cares more for other people’s welfare than most people seem to care about their own, I am convinced that giving people free money to spend as they wish is not a very good idea: it is pretty well established that a very significant chunk of the populace would spend the money on drink, gambling and buying basically useless gizmos (like new smartphones or motorbikes every year) than on food, shelter, healthcare or education for their children. Call me names if you like, and I don’t like the situation one whit myself – but it hardly changes reality.

Thirdly, and most importantly, I think that UBI addresses only a small part, the economic part, of the crisis looming over us. And I believe (I may be wrong) that far too few people are yet worrying about what worries me. To put it very briefly: how will a society filled with vast hordes of unemployed people with money enough in their pockets survive for long? That is not wholly an imaginary dystopia, it is already a (though not-yet-all-pervasive) reality for those who have eyes to see with. I wrote in a post titled Technology in a demented age that ‘I know there are many hundred million people in the world today with too much money, too much time hanging heavy, too little responsibility, too empty brains and no real passions of any kind, who need to be kept constantly engaged and entertained…’ and you can check this out for yourself, really, though schoolchildren are still writing trash in their essays about people being ‘busy’ all the time. What on earth are they busy with? I see folks swarming in shopping malls even on weekday mornings whenever I care to go and look; enormous numbers are going to wedding- and other feasts or attending noisy picnics and festivals of one sort or the other all the time, still bigger numbers are dressing up for hours or glued to their TVs or mobile phones for many hours a day, or zooming around aimlessly on bikes; so many parents chat vacuously before my house every day dropping their kids to the tuition and waiting to pick them up again, obviously because they have nothing better to do… one has to be determinedly blind or stupid not to notice. Of course some people are really very busy, but they certainly do not make up a majority. And remember, this is already true in an age when not all – far from all – are assured of a decent, guaranteed, unearned income lifelong! Trying to imagine what is going to happen when everybody is so assured boggles the mind.

I have a great faith in proverbs – remember they represent wisdom about human nature gleaned and distilled over thousands of years, and human nature does not change significantly over a few generations – and I constantly worry over the proverb ‘An idle mind is the devil’s workshop’. Imagine a society where the vast majority of minds are always idle, and bodies too, because they never have to think of making a living. Colin Wilson wrote in his monumental Criminal History of Mankind that much of the worst kinds of crimes all through history have been committed by people who were bored stiff with a too-easy life. And that was in the days when most people had to keep their noses to the grind from early childhood to old age just to survive. Look around yourself, see how many crimes and offences are committed already by people (even supposedly educated people) whose primary problem is time hanging heavy in their hands, from drug-sodden teenagers screaming and swooning at rock concerts and football games to louts harassing women on the streets to gangs ready to be whistled up by any political party to create a riot just because it relieves the unbearable monotony of their empty lives with a few moments of violent, gory ‘fun’.  Then imagine a whole society full of such semi-humans…

Shall we acknowledge reality before we go ahead with well-intentioned but harebrained schemes which can bring about disaster? How many people, given what we are mostly like, use well-provisioned leisure to become Thomas Jeffersons, Lord Kelvins and Rabindranath Tagores? How many are much more likely to turn into pigs and wolves instead? (In case that last line sounds harsh or far-fetched, I suggest you look up Tolstoy's short story The imp and the crust).

8 comments:

Rajdeep said...

Interesting.

I would like to have your opinion about the following article by Dutch historian, Rutger Bregman.
Want utopia? Start with universal basic income and a 15-hour work week
https://www.wired.co.uk/article/universal-basic-income-utopia

You can view his speech at Davos, here.
https://nowthisnews.com/videos/politics/billionaires-called-out-for-tax-evasion-by-historian-rutger-bregman


Suvro Chatterjee said...

Many thanks for the first article, Rajdeep, and I've already thanked you for the second via Whatsapp. These are so important that I am going to weave them into my next blogpost on the subject.

I do so wish that at least dozens of my ex-students would join into this most interesting discussion. But alas, too many of them have nothing to say, too many are just too lazy to say anything, and all the rest are 'busy' ... busy shopping, pubbing, watching TV or playing games on the phone! As a result, in Rajiv Gandhi's words, the future is being determined far more by mindless drift than by direction.

Sunup said...

Dear Sir,

After I read this post, the Congress party's minimum income guarantee poll promise came to my mind. It seems French economist Thomas Piketty and British economist Angus Deaton are helping the party to frame the proposal. The plan is to stop or tweak some of the existing social security and welfare plans to part-fund this new proposal. So indeed more and more people are leaning towards the concept of UBI.
But as you've stated, will it really work out? I too doubt it. In states that have introduced 1 rupee rice schemes and other such freebies, it seems the general working class has become lazy or non-committal. Labour contractors face a huge headache in supplying workers for big projects. Many workers, it seems, once they save some 40-50K, just go back to their villages and then live their lives boozing or loitering around (since food isn't a problem) till the money runs out. So I guess our general mentality is to live a life of ease. So I am not sure whether UBI would be successful, particularly in our country.

Regards,

Sunup

Subhasis said...

Dear Sir,

I think the idea of a basic guaranteed income is more than likely to fail than succeed.
First, a guaranteed income would rob people of a ‘structure’ or framework to their life and most people (myself included) would be bored within a week or so. Many people who derive some joy from their work and like to think that their work means something because they can buy a car or an apartment would be robbed of that joy, either by force or by design. Whether governments should operate so deeply within the private lives of the people is yet another open-ended discussion
Second, the motivation to earn great personal wealth is what oils the wheels of capitalism. Therefore, these socialist movements would collide greatly with the forces that largely dominate our world. Such an idea would be under threat from the very beginning and would not go far before being quashed by ‘but....’ clauses for e.g.-Guaranteed income but must possess 5 years of formal education after high school.
Third, it is a prescription for disaster to think that every country could just start this kind of scheme at short notice. Even in Germany where something not entirely dissimilar operates on a day to day basis, many clauses have to be met( see the Second point) and the amount of money gets debated on regularly in the Bundestag(Equivalent to Indian Lok Sabha) and the trend is to reduce rather than adjust with inflation rates and so-on. If in a highly developed industrial European country, this is the case one can imagine the furore it would create in India.
Lastly, it discourages upward socio-economic mobility within society thus entrenching people within various levels of education. A highly stratified society with little to no people at the top of the pyramid means everyone would remain, even after a few generations at roughly the same educational level so innovation takes a hit as well.
Even with all this, I think a workable model could be achieved but would require many people with society’s best interests at heart to work together and work for the benefit of all. A statement easily said, but alas, too hard to realize.

Warm regards.
Subhasis Chakraborty

Krishanu Sadhu said...

Dear Sir ,

Finland trialled with the idea of UBI and the results were not encouraging. They decided not to adopt it nationwide . You can refer to the following link :

https://economictimes.indiatimes.com/news/economy/indicators/free-money-makes-people-lazy-a-lesson-for-india-from-finland/articleshow/67911284.cms

Regards,
Krishanu

Suvro Chatterjee said...

A big thank you for commenting after a long time, Krishanu, and even more so for that very interesting link. I hope a lot of my readers look it up. If this happens in a European country, imagine what it would do in a country known for the bone-laziness of a very big fraction of its population, such as ours. And, as I shall keep underlining till I am blue in the face, what will happen to such a country where most people, once they are moderately housed and fed and have nothing to do, are known to be hell-bent on noisy mischief (to put it very mildly), throwing all concern for the safety, well-being and dignity of their fellow citizens to the winds!

Subhasis said...

Dear Sir,
I would like to bring to your attention the information from Finland s experience with UBI
https://www.euractiv.com/section/economy-jobs/interview/finnish-finance-minister-case-closed-for-universal-basic-income/
Warm regards,
Subhasis Chakraborty

Rajdeep said...

After a few years of study since this post, UBI is indeed a recipe for disaster. UBI cannot guarantee a minimum standard of living with rising costs and inflation. It has been successfully implemented on a small scale only in a few isolated cases. Instead, governments should focus on three things: 1. Free education until university level (based on merit and aptitude of course) (this may be possible if there is a collective will and effort), 2. Free or heavily subsidized medical care for all (herculean efforts and meticulous planning would be necessary to get anywhere close to implementing this), and, 3. Housing assistance for those who cannot afford proper housing. Nothing else should be free or subsidized, and these three things by themselves would be hard to achieve. Even stimulus can be disastrous as the following article by Jason Hickel explains.
Stimulus Is an Environmental Disaster Waiting to Happen
https://foreignpolicy.com/2021/02/23/stimulus-is-an-environmental-disaster-waiting-to-happen/