The Future of Work Revisited, how UBI can transform American capitalism

Tech pundits are increasingly realizing the future of work is about to take a big-time shift. Read on.

This week there's a lot of new material on this topic. For one of the best recent primers on What is Universal Basic Income? A brief history; read here.

With some 57% of jobs around the world at risk of being displaced by automation, some members of the tech community and beyond think giving people money, for free, no strings. - LinkedIn Editors

Is Universal Basic Income the Future of America?

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Both Elon Musk and Mark Zuckerberg Support It

• According to Futurism, Mark Zuckerberg spoke at Harvard's commencement, saying that basic income is an "idea worth exploring."
• With his endorsement of UBI, Zuckerberg joins a growing list of experts including Elon Musk, and innovators who believe supporting basic human needs must precede innovation. I'm quite sure Peter Diamandis, one of the founders of the Singularity University is in agreement as well.

UBI has been around for decades in science fiction, and science fiction is one of the empowering forces for Silicon Valley - Sam Altman

Venture Capitalism for the People?

With both blue collar and white collar jobs on the chopping blocks sometime in the 2020s due to automation, machine intelligence and the 4th industrial revolution signaling exponential advances in technology, many are wondering at some basic questions.

• Who will pay for it?
• Is it Anti-American; how does this change our identity as self-sufficient providers and individuals?
• Increased research on the future impact on the economy is needed
• Will job losses be significant enough to warrant UBI and for whom?

Does Technological Capitalism Infuse Elements of Socialism

Younger Americans don't have the aversion to "socialism" that seems to define some old-school working class values, as showed by the incredible support for Bernie Sanders in 2016.

As "Millennials" favor a value system of inclusion, an unconditional universal basic income (UBI) might sync well with their values; that favors equality rather than the elitist systems of hierarchy the permeates most western societies. Could it be that the values of what the American Dream is, might have to adapt to the new economic and workplace realities that will occur in the next few years?

Adopting "UBI" does not mean we magically become a socialist state; but it has the impact of empowering the bottom 50% (research tends to support that people use capital productively).

Will Automation Change our Collective View of Poverty

Our identity based on work-definition and our rugged individualism, might in the next two decades, take a significant hit.

As our current employment rate is lower than it has been in a long time; we have to think carefully of how we will problem solve automation and what we will tolerate our most vulnerable to experience during this period. Will we tolerate huge segments of the population living below the poverty line when jobs disappear en masse due to automation?

Motherhood is a hugely "productive work" and it does define us, but what happens when the following sectors and industries all are automated at roughly the same time? There are expected to be millions of new vulnerable Americans, in the not so distant future.

Job Losses in the 2020s are Expected

1. Retail - cashiers, sales associates, logistics
2. Transportation - drivers and truck drivers
3. Finance - too many roles to name
4. Administration - support roles and middle managers across industries

How we Relate to the American Dream Must Be Realistic

As of 2015, more than 43 million (of 321.4 million total) Americans live below the poverty line.

That's well over 13% of all Americans. Without UBI, that figure is set to rise significantly in the coming years; if automation comes to pass at the magnitude many of the studies and tech community believes it will.

Automation coupled with an aging population is a ticking time bomb for the future of work, employment and the economy. We know it's coming; but there's little time to prepare.

The rising gig economy is a natural adjustment of the new economy; and the role entrepreneurship, startups and small businesses could have on the new workforce, could be significant. During transitions; if applicable to receive a UBI could alleviate human suffering.

Our Economy is a Work in Progress

To adapt to a world of artificial intelligence will mean to relate to work, careers and jobs and the very meaning of our purpose; differently. #WorkInProgress

To quote again Caroline Fairchild's work:

Only 50% of those born in 1980 or later will make more than their parents, new research shows....Leaders in the industry now want to see — and solve — this problem firsthand.

The Basic Equations of our lives have Changed

This relates directly to the millennial paradigm where:

• Significant student loans drain financial resources
• A college education is not as great an advantage as in past times
• The quality of jobs has deteriorated, with increased competition and more part-time jobs
• The cost of living and housing in particular has increased faster than gains in salary

This combined with impending automation; is a cause for concern for Millions of American workers and really the entire world.

UBI was not invented in America; It's Primarily a Scandinavian Construct

Finland's basic income experiment is already making people feel better after just 4 month. (Source: World Economic Forum)

While Silicon valley pundits can rally behind UBI in theory, places like Scandinavia and Canada have been living it to varying degrees and actively experimenting. The U.S., let us remind ourselves, is one of the last nations not to have a mandatory paid parental leave.

Privileged Americans do not want riots on their hands, and will actively try to remedy the social and economic issues raised by the very technologies their companies pioneer to transform society. We have to learn from more progressive countries and take elements of what they are doing right to truly thrive.

The New Economy Means a new version of the American Dream

In that light, Elon Musk and Mark Zuckerberg rallying to the UBI causes makes perfect sense. The result?

• UBI pilot programs and studies are now sprouting around the world
• The modernized economy will take new forms as well as an adoption of aspects of blockchain, biometrics and caring/sharing on-demand apps and solutions.
• UBI will transform how we see work; decoupling income from occupational duty for future generations to such a radical degree; they will wonder how we existed.

Reasons to adopt UBI

Pending further data; we have to tackle the obvious reasons. Here's what the World Economic Forum had to say in their article.

It's not required to be a member of the the Singularity University, to get why UBI could be a good thing. We'll be cannibalizing inefficiency sooner or later. Since exponential changes will mean the economy will shift faster than policy can keep up, we'll be living in interesting times.

Below are common sense reasons why adopting UBI might be preferable for the long-term good of the future citizen:

• It alleviates suffering at scale, through some of the most disruptive years of this century. The alleviation of poverty is important, since AI will also improve net productivity and stimulate the economy; UBI may be the most "win-win" way to reap the rewards.
• Unlike training programs (that aren't always effective); capital promotes freedom for those most vulnerable to find solutions themselves that suit their innate self-determined potential.
• In a robot world of the automaton economy, UBI is the harbinger of a new way of visiting the "meaning of life": Basic Income will help us rethink how & why we work.
• With a basic economic safety net in place; employees (toxic workplace) and women (abusive homes) won't be trapped in degrading or exploitative situations. Basic Income will contribute to better working conditions.
• Greater equality; with UBI the 1% has to play by new rules of capitalism that put greater weight on a re-distribution of wealth: Basic income will help with reducing inequalities.
• Greater work life balance and more productive citizens. According to studies on reduced work hours per day coming out of Scandinavia again; workers are MORE productive. Thus, UBI will likely contribute to less working hours and better distribution of jobs leading to better work-life balance and environmental fit.

“A universal basic income, or providing enough to meet your basic needs, can free you from the shackles of surviving." - Michael Faye

If we don't adopt UBI, the results could be catastrophic.

While it's unclear if momentum is building for UBI in Government or among economists, in popular culture and among tech leaders; each passing month that we get closer to the automation economy; UBI is likely to take a more vital stance.

This article was made possible by the enthusiasm and due diligence of Caroline and Chip at LinkedIn: Subscribe to Work In Progress on iTunes

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I'm the 2nd ranked LinkedIn Top Voice in Marketing and Social, and I actively cover the future of technology and the future of work. I live at the intersection of tech news, disruption and future trends. Follow me to stay in touch.

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Do you think UBI is a good idea, why or why not?