Saturday, October 31, 2020

10 October 2020 After COVID 19 comes UBI

 


As I walked through the vineyards of the Medoc, I saw a scene that has occurred in millions of places over the last 40 years. A huge mechanical grape picker was emptying its grape bins into a trailer pulled by a medium sized farm tractor.  Two men were picking 20 hectares of grapes. Gone were the 40-60 Spanish, Moroccan, Polish and Bulgarian migrant vineyard workers who for endless years have appeared at the time of the vendange.  Harvest was handled by two men and machines instead of human beings. 

There are a few old, very wealthy chateaus that still pick by hand. They have housing and sanitary facilities and contract for several hundred workers to carefully hand pick the grapes.  The prices of their wine reflect the labor costs that most chateaus avoid by using machines. It is more efficient to harvest with machines. Some would insist that quality is sacrificed.

In this bucolic scene one can see the huge problem which faces the world. Technology is making it possible to do work that used to require millions of human hands by simply turning a switch and letting a machine do it. The dilemma that the society faces is how do you provide income for people to live a decent life who are willing to work but their job has been replaced by a machine. My 10 year-old grandson is in a robotics club in school building robots. Is he in the process of eliminating his future job?

The turmoil in the United States and Western Europe about immigrants is largely caused by the perception of the native workers in a society that their jobs are being taken away by low cost immigrant labor. This has been compounded by free trade which has moved many of the manufacturing jobs in the western world into areas of low-cost labor.

The workers are furious that having lost their job either to a machine or to an immigrant. They rightly perceive that their job is never coming back. So, they turned to their government for some help.

The safety net of unemployment insurance is a very leaky net. Many workers do not qualify for it and it is not a stable source of income on which they can plan any kind of decent life. So who to blame? The government immediately comes forward with a plan to retrain the workers. To do what? how long will it take? Is there any assurance that there will be a job at the end of the training.?

This resentment has been building in the western world since 1980. Workers have become more efficient in what they do but have not had wage increases commensurate with what they have done. The text structure has been changed in such a way that all the benefits goes to the top 5% of the income pyramid. The workers can see that and they are angry.

They are susceptible to leaders who tell them to direct their anger at immigrants or foreign countries or whatever. The rise of populous leaders using this technique is evident across the face of the world. Trump is the local manifestation in the United States but Brexit in the United Kingdom and the leadership in Poland and Hungary and France are all struggling with the same kind of resentment and anger in the population.

Countries with a more complete safety net which includes health care for all and unemployment for all and child care for all are being attacked as vigorously as is the United States with its leaky safety net.

The time has come for the leadership in the United States to move toward an idea which has been bandied about or 50 years. Universal basic income (UBI)is a concept that must be implemented if we are to have civil societies. We cannot continue with in a society where the workers work harder, are more efficient, and get less of the benefit while those at the top accumulate more and more with no limits.  

As these changes by technology have occurred, we have simultaneously taken away the ability of workers to organize into unions to demand a fair share of the profits of their endeavour. Politically we have made it harder and harder for unions to organize workers so that they could demand what they need. We still struggle with whether we should have universal childcare yet more than half the workforce is made up of  women who are expected to carry the baby and then go back to work the next day. Where are they to find someone to care for the child while they go to work. That's their problem.

Without a universal health care system how can they take care of their family including their elderly parents and their children except by finding a job that has health care benefits and staying there no matter what the situation is. On the day that the plant closes it's their problem.

As their parents age because we're living longer they're torn between going to work and holding on to their job and their income and caring for their elderly parents. If they choose to care for their parents, as one would expect a child to do, the fact that they lost their job: it's their problem.

If their children want to go to college and ask their parents to be cosigners on loans to pay for the exorbitant costs of college they are saddled for the rest of their life with the debts of their children as well as their own debts. If their child doesn't find a job to pay off their loans and the parents would like to move out of their big house as they downsized into retirement they can't because they have loans for their kid’s education depending on the equity in their house. It's their problem.

Thinkers on both sides of the aisle have come to the conclusion at various times that a universal basic income is the answer. it is always been dismissed as socialism. The turmoil in the society which we are now seeing is the result of that refusal to face the need as a society to provide a decent standard of living for everyone.

This is not a far-out leftist idea. In Alaska the oil revenue from the oil fields is put into a fund which is distributed every year to everyone in Alaska. Is that socialism? Norway has a similar program collecting the oil revenue from the North Sea and distributing it to all Norwegians. Is that socialism?

Alaska the home of the true libertarian individualists who braved the world’s hardest weather on an individual basis and the Norwegians who faced the same kind of nature have come to the same conclusion. Maybe all the revenue in Alaska should be taken away from the people and given to the oil company executives. How long do you think it would take for that to happen.?

The objection to the UBI proposal is that the money would go to a lot of undeserving people. I do not notice the Alaskans making that distinction nor the Norwegians. If one were certain that there was a basic income available for all, some people might be willing to accept that as a decent living. There will still be those in the society who want to make more money and have more stuff and they are free to do that in Alaska and in Norway.

The second objection to a UBI proposal Is that we have no money. Any serious consideration of our tax structure shows that there is plenty of money available in the top 5% of the income pyramid. Simply raising the rate back to the levels that were existed during the Kennedy administration would produce an enormous amount of money. Presently we're not taxing the Internet on any serious basis. Financial transactions are not taxed because they benefit the wealthy. There are a number of places from which the UBI proposal could be funded. The objections to a UBI proposal are basically the same ones that were raised when Social Security was started in 1935. If we created a fund into which dedicated taxes was put we could provide a UBI to all the families and childless adults in society.

If you stopped reading several paragraphs ago because you dismiss the idea of a UBI as the rantings of the socialist consider the fact that it was a libertarian Alaskan governor with the blessing of Milton Friedman from the University of Chicago that in place the Alaska fund.

 Anyone who sits down and seriously thinks about the future of the third wave of high tech and robotic world in which we are living has to consider where the new jobs are going to come from. They're being wiped out faster than most people can imagine. The day is just around the corner when you will not drive your own car unless you want to. There is plenty of evidence that all transportation will be done by technology in the form of driverless cars.

When my father lost his job back in the 50’s he was an insurance company employee and while he was looking for a job he drove a cab to put food on the table for our family. Every morning when he went down to the cab company at 5:30 in the morning I went with him. I was the dispatcher for the Downers Grove cab company. Those days are never coming back and the chaos which is now upon the United States created by people who believe that you can force people to go to work if you simply don't give them any money to buy food in any other way, do not understand human beings. The anger and chaos that is fomenting in our society is based on the feeling of frustration and anger that goes with having a family and no money to buy food to put on the table or to pay the rent for the house or apartment.

One only has to look to history to see how this has affected our society. All through the depression people lived on the edge and their children's nutrition suffered and when the Second World war came and we needed recruits for the military. Thousands of young men were rejected because of nutritional deficits created by that period of depression and poor nutrition. The school lunch program of today was started by Harry Truman not because he cared about kids or learning or anything else. He wanted to be sure that the children who were growing up in the United States would be healthy enough to go into the military. We are risking our children again by creating a situation in which food banks and the generosity of friends are the only source of food for families. 

I’m so old that I can remember when my grandmother who did not have Social Security and Medicare who came to live with our family for three months of every year.  She had four daughters and she rotated through their houses every year for four or five years before she died. My parents had discussions at night when we children were in bed over how they were going to pay for grandmas health care bills. My father was struggling to pay for his four children and suddenly found himself burdened with his wife's mother. Nobody was happy when she came because she was an unhappy and demanding old lady and she took it out on us children. My mother worked part time for the telephone company to supplement her family income. She was only able to do that because grandma was child care to the family.

 Social Security and Medicare have made it possible for me to live without turning to my children for basic needs. But the problem today is complicated for young people by the fact that they have no guaranteed income beyond the $2000 a month I got in Social Security when they retire. They have no guaranteed pension. If they're lucky they have an IRA which may give them some security in the future but that's based on the vagaries of the stock market.

The answer for a civil society to the questions of the future of all families must be a UBI (universal basic income) guaranteed by the whole society.

Jesus said, “Suffer the little children to come unto me.”

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