Tag Archives: Universal Basic income

UBIquitous

Glad to see the debate on UBI is starting to get beyond the surface gosh-wow. From a bit at Teh Graun:

In their incendiary book Inventing the Future, the authors Alex Williams and Nick Srnicek argue for UBI but link it to three other demands: collectively controlled automation, a reduction in the working week, and a diminution of the work ethic. Williams and Srnicek believe that without these other provisions, UBI could essentially act as an excuse to get rid of the welfare state.

W & S are smart to suggest those provisions, but I’d suggest there are a few others necessary to avoid the trap that the aspiring nosferatu of the Adam Smith Institute are so keen to spring.

So, look: the state sets a standard rate of UBI, presumably on the basis of some basic standard of living; perhaps they even put it on an inflationary ramp so it increases over time. Lovely: everyone can afford the basics, and you can work to level up from there is you want to.

However, if housing provision is still predominantly handled by the private sector, rents would rapidly raise to the highest point that the UBI would bear, coz rentiers gonna extract rents. Ditto privatised medicine. Ditto food production. Ditto infrastructural provision. In an unreformed market economy, whatever the set rate of UBI was would be inadequate very quickly — like, a matter of years rather than decades, if not faster. Because when we talk about markets being efficient, that’s what we really mean: their rapid maxing out of all possible rent extraction in any given system. (Yeah, you though efficiency was all about using less, didn’t you? That’s a useful illusion, which is why you’re encouraged to keep it. But no: market efficiency is exactly the opposite, in that the efficient market leaves nothing unused.) ┬áIn a nation of legitimised thievery and tollbooth economics, putting money in the poor man’s pocket serves only to enrich the thieves over the long run; hence the poorly-disguised boners around the C-suite table at the ASI, no doubt.

This is not to dismiss UBI, to be clear; it’s a rational and achievable reform of state welfare systems. But in the absence of land reform, significant regulation of businesses, and the partial or total renationalisation of infrastructure and housing, it will fail, and fail fast. If you want to provide the basics to everyone, you’re going to have to intervene in the systems of provision… and you can bet your bottom dollar that the ASI won’t be genuflecting to that idea any time before the heat-death of the universe.