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Government The Almighty Buck

Are Universal Basic Incomes 'A Tool For Our Further Enslavement'? (medium.com) 651

Douglas Rushkoff, long-time open source advocate (and currently a professor of Digital Economics at the City University of New York, Queens College), is calling Universal Basic Incomes "no gift to the masses, but a tool for our further enslavement." Uber's business plan, like that of so many other digital unicorns, is based on extracting all the value from the markets it enters. This ultimately means squeezing employees, customers, and suppliers alike in the name of continued growth. When people eventually become too poor to continue working as drivers or paying for rides, UBI supplies the required cash infusion for the business to keep operating. When it's looked at the way a software developer would, it's clear that UBI is really little more than a patch to a program that's fundamentally flawed. The real purpose of digital capitalism is to extract value from the economy and deliver it to those at the top. If consumers find a way to retain some of that value for themselves, the thinking goes, you're doing something wrong or "leaving money on the table."

Walmart perfected the softer version of this model in the 20th century. Move into a town, undercut the local merchants by selling items below cost, and put everyone else out of business. Then, as sole retailer and sole employer, set the prices and wages you want. So what if your workers have to go on welfare and food stamps. Now, digital companies are accomplishing the same thing, only faster and more completely.... Soon, consumers simply can't consume enough to keep the revenues flowing in. Even the prospect of stockpiling everyone's data, like Facebook or Google do, begins to lose its allure if none of the people behind the data have any money to spend. To the rescue comes UBI.

The policy was once thought of as a way of taking extreme poverty off the table. In this new incarnation, however, it merely serves as a way to keep the wealthiest people (and their loyal vassals, the software developers) entrenched at the very top of the economic operating system. Because of course, the cash doled out to citizens by the government will inevitably flow to them.... Under the guise of compassion, UBI really just turns us from stakeholders or even citizens to mere consumers. Once the ability to create or exchange value is stripped from us, all we can do with every consumptive act is deliver more power to people who can finally, without any exaggeration, be called our corporate overlords... if Silicon Valley's UBI fans really wanted to repair the economic operating system, they should be looking not to universal basic income but universal basic assets, first proposed by Institute for the Future's Marina Gorbis... As appealing as it may sound, UBI is nothing more than a way for corporations to increase their power over us, all under the pretense of putting us on the payroll. It's the candy that a creep offers a kid to get into the car or the raise a sleazy employer gives a staff member who they've sexually harassed. It's hush money.

Rushkoff's conclusion? "Whether its proponents are cynical or simply naive, UBI is not the patch we need."
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Are Universal Basic Incomes 'A Tool For Our Further Enslavement'?

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  • by hey! ( 33014 ) on Saturday October 13, 2018 @05:43PM (#57473090) Homepage Journal

    tool for enslavement: using emotionally loaded language.

    • by Freischutz ( 4776131 ) on Saturday October 13, 2018 @06:25PM (#57473234)

      tool for enslavement: using emotionally loaded language.

      Quoting Tacitus, actually ... in a slightly round about way. Mind you Tacitus was speaking about 'civilisation' as the tool of enslavement

      "He...gave private encouragement and official assistance to the building of temples, public squares and good houses...and so the population was gradually led into the demoralising temptations of arcades, baths and sumptuous banquets. The unsuspecting Britons spoke of such novelties as 'civilisation,' when in fact they were only a feature of their enslavement."

      If you had asked him about the Roman elite's practice of pacifying the vast masses of Rome's unemployed with 'bread and games' (in a modern context: universal income, reality TV, Trump rallies and Fox News) he probably would have had similar things to say except he would probably have also pointed out, with a considerable degree of satisfaction, that the Roman mob sold itself more cheaply than the Britons did.

  • Complete nonsense (Score:2, Insightful)

    by hviezda14 ( 580875 )
    That is a complete nonsese. Let's say everyone will get $1000 UBI. Does this mean, that they will earn $1000 more of value? NO. It will inflate global prices about $1000 so prices will be (TODAY_PRICES + $1000), so they will gain no value at all. No one.
    • Unclear. If it's financed by taxes, not by deficit spending, it doesn't actually increase the amount of money available to the economy by much.
    • Re:Complete nonsense (Score:5, Informative)

      by PopeRatzo ( 965947 ) on Saturday October 13, 2018 @06:05PM (#57473168) Journal

      That is a complete nonsese. Let's say everyone will get $1000 UBI. Does this mean, that they will earn $1000 more of value? NO. It will inflate global prices about $1000 so prices will be

      As shaky as the the "science" of economics is, any Econ grad student could explain to you why that is simply, and absolutely not true historically. In the United States, we have had a rapidly growing money supply, based entirely on the Fed printing money, and it has not led to inflation.

      If you're using a fixed (or relatively fixed) commodity like gold as the basis for your currency then you might have an argument. Since we went off the gold standard, you do not see any correlation between the number of dollars in the system and inflation. The simplest way to express it is this: if the growth in monetary supply outpaces the growth in output, then there might be some inflation, but since we've had decades of increased output and virtually no increase in money in the pockets of working people, there is a lot of ground to make up before we start seeing any impact. So, if the Fed printing money to put in the pockets of rich people (aka, quantitative easing) has not caused monetary inflation, then certainly putting money in the hands of people at the other end of the spectrum won't either. In fact, the increase in demand would probably trigger greater output.

      • Re: (Score:3, Insightful)

        by alvinrod ( 889928 )
        Increased demand doesn't matter and there's always going to be more regardless of how rich or poor a country is since human want is essentially unlimited. What's needed is more supply, because that's what drives prices down. Increase demand as you want without increasing supply and prices go up, though not immediately by the time it comes close to the same level, the same people would just give a higher UBI to try avoiding the problem. Increasing supply means there's more wealth go around, even if the peopl
      • In the United States, we have had a rapidly growing money supply, based entirely on the Fed printing money, and it has not led to inflation.

        This is misleading. The whole point of QE was to prevent a deflationary spiral in the aftermath of the financial crisis. So while it didn't lead to high inflation, it did lead to much higher inflation than we would have otherwise had.

        In 2008, we came very close to another great depression, and it was QE, Obama's stimulus package, and yes, the unpopular but necessary bank bailout, that kept that from happening.

        • In the United States, we have had a rapidly growing money supply, based entirely on the Fed printing money, and it has not led to inflation.

          This is misleading. The whole point of QE was to prevent a deflationary spiral in the aftermath of the financial crisis. So while it didn't lead to high inflation, it did lead to much higher inflation than we would have otherwise had.

          The money was pumped into the financial sector and government. The Fed bought mortgages and government debt. [brookings.edu] I seem to recall the Fed buyi

          • The bailouts rescued the old system.

            Indeed they did. But October 2008 was not the best time to do a redesign. When the lifeboat is sinking, you don't debate, you grab a bucket and start bailing.

            The time for the redesign came later. The solution from the left was Sarbanes-Oxley. The solution from the right was more deregulation. I'm not sure which was worse.

      • and absolutely not true historically. In the United States, we have had a rapidly growing money supply, based entirely on the Fed printing money, and it has not led to inflation.

        You're dumb as a brick. If you had actually talked to a student of economics (and a good student in economics 101 would know it, this is really basic stuff and you are ignorant), they would have told you that MV=PQ. In other words, the velocity of money matters just as much as the total money supply. If the money supply increases and people act the same (ie, velocity and total goods doesn't change), then there will be inflation. This is empirically demonstrated, through a lot of historical examples, which y

    • Re: (Score:2, Interesting)

      by Issildur03 ( 1173487 )

      That's a common counter-argument, but doesn't seem to make sense. You seem to be arguing that charity-type wealth distribution is pointless in general... I'd like to settle this for myself once and for all, so perhaps you can help clarify your point.

      As far as I understand it, the goal of UBI is to redistribute the wealth more fairly*, not to create wealth, and only ends up helping those that need money.

      For a simpler example, if I buy someone a pair of shoes, that doesn't create wealth, just takes it out of

    • Finance the UBI by forced investment in index funds, with returns to come later. Probably wouldn't be popular, and people would need an income (for many! years) first to do such a thing. But it would cycle the money from company to consumer, and back. How that would affect M1 - well, I'm not an economist. I'm sure the politicians and Treasury Department would contrive a solution, especially if some of that money was a bit sticky. Maybe a lot sticky.
    • That is a complete nonsese. Let's say everyone will get $1000 UBI. Does this mean, that they will earn $1000 more of value? NO. It will inflate global prices about $1000 so prices will be (TODAY_PRICES + $1000), so they will gain no value at all. No one.

      That's not how economics works. A UBI is re-distributive, if Sue has $10K, and Frank and George only have $1K then sellers have a lot of incentive to create things for Sue and not much to make things for Frank and George.

      But if Sue now only has $8K and Frank and George have $2K sellers are going to shift some effort away from making things for Sue and put more effort into making things for George and Frank.

      How this translates into prices is fuzzy and very circumstantial. Housing generally gets cheaper, Sue

    • That is a complete nonsese. Let's say everyone will get $1000 UBI. Does this mean, that they will earn $1000 more of value? NO. It will inflate global prices about $1000 so prices will be (TODAY_PRICES + $1000), so they will gain no value at all. No one.

      Well of course then you just raise UBI. Problem solved.

  • by magarity ( 164372 ) on Saturday October 13, 2018 @05:48PM (#57473106)

    40+ years and trillions of dollars after Johnson declared war on poverty and here we are wondering how to enslave more generations in poverty with even more expensive schemes.

    • by Mashiki ( 184564 ) <mashiki@gmail.cBALDWINom minus author> on Saturday October 13, 2018 @07:34PM (#57473530) Homepage

      40+ years and trillions of dollars after Johnson declared war on poverty and here we are wondering how to enslave more generations in poverty with even more expensive schemes.

      If people want to see where this gets them, just look up here to Canada. ~100 years of the federal government paying natives under treaty, and it's effectively collapsed their entire culture and society. Laziness is an inherent human trait, and without something that pushes large swaths of society to improve themselves it just all goes screaming downhill.

      • Yes, laziness is inherent in humans. That's why it's so important to tax inheritances at roughly 99%. Otherwise, all those wealthy children will just sit on their asses and do nothing except consume and make political contributions to reactionaries. By taxing them and redistributing the decedent's hoarded wealth, the children are allowed to work for a living, and those in dire need have a shot at the money that had been pulled away from things like housing and food and placed instead into yachts, jewelry

  • by alvinrod ( 889928 ) on Saturday October 13, 2018 @05:57PM (#57473132)
    The world is better off as a whole eliminating the work done by the least productive members of society, even if it means subsidizing them through something like a UBI, which is probably the least terrible form of wealth redistribution, but that's an aside. It fails to consider that as the world becomes more productive, the cost of goods and services decreases, which actually means that it becomes cheaper and cheaper to subsidize someone to a basic level of living. You can even see homeless people with smartphones and internet access these days and that's because they both became incredibly inexpensive relative to what they previously were.

    Some people like to complain that as this wealth is created that a disproportionate amount of it goes to the wealthiest people, but it misses the point. It doesn't matter if the wealthiest are getting a disproportionate amount of it as long as everyone is moving up, and if you look at the world, poverty has been declining globally at massive rates. Even in the U.S. which is already wealthy, people are moving up. You often see people complain about the shrinking middle class, but what they fail to mention is that it's because the upper middle class is growing [aei.org].

    If anything is a problem with UBI, it's that humans seem to need some purpose in order to function well and for a lot of people that's a job that they feel gives their lives meaning. Many proponents like to think that most UBI recipients will learn new skills, etc. but I think a large number either won't or there might be a few at the bottom who won't be able do any kind of productive labor that wouldn't be better done by a machine. Even though further industrialization will continue to drive productivity higher and make goods more affordable, people without purpose tend to fall victim to substance abuse or other forms of behavior with similar consequences and outcomes. I think that's going to be the harder problem to crack, because I'm not sure if technology can do anything about it.
    • by b0s0z0ku ( 752509 ) on Saturday October 13, 2018 @06:00PM (#57473144)
      If the least productive members of society are actually able to get off the treadmill of a minimum-wage job, they'll have time to better themselves through education, training, reading, etc should they desire to. The breathing room given to them will actually allow them to become MORE productive people.
      • by alvinrod ( 889928 ) on Saturday October 13, 2018 @06:47PM (#57473342)

        they'll have time to better themselves through education, training, reading, etc should they desire to.

        That's really the key part right there. There are a large number of people who have no such desire and would just be a sponge. I'd argue that it's probably less expensive to just let them be sponges than to deal with the other unwanted outcomes of just leaving them in abject poverty, but that's just my view. Basically I can either pay for a UBI or I can pay for police, prisons, etc. when these people end up on the street and turn to crime to survive.

        Also, when I'm talking about the least productive members of society, I'm talking about people who are probably moderately mentally disabled and doing cleaning work as a part of some program that subsidizes their employment to some degree. They may not be able to read (though with video services that might not be a necessity anymore) and there are likely limits to their attainment. As computers become more powerful and AI more capable, the aptitude floor just increases.

        Fortunately, I don't believe that this is a large issue. There will be some people who just choose to become useless, but I believe that most people do want to better themselves or do something useful. Perhaps there could be a stipulation that people who get a UBI and don't gain new employment within some duration have to do 10 hours of volunteer work per week. Even if it's not cost effective, it's still something. I also think that having people do volunteer work would do a lot to prevent withdrawal from society as it's precisely the kind of work that's easy to take some pride in or let's people feel as though they're making a difference in the world.

        • I'd argue that it's probably less expensive to just let them be sponges

          Even after you correctly call some category of people sponges you don't follow through the analogy of what sponges do best - absorb things.

          There's an old saying that "idle hands are the devils playground" and if you start to give a bunch of people just enough money to subsist on, you will quickly find they are consuming VASTLY more resources than the poor are today.- in terms of health care, and costs to society at large from greatly inc

  • UBI is the primary ingredient.

  • to give working tax payers some gov money every year?

    Want to support the poor and working poor?
    Use a means test to find out who is not working, poor, working poor, in need of gov support.
    https://en.wikipedia.org/wiki/... [wikipedia.org]
    Offer that support until they are working the needed hours and earning a wage.
    Use photo ID to prove citizenship when starting such payments and ensure the payment goes into a new bank account that has been set up with photo ID.
    That ensures payments only go to approved citizens and no
  • ...is a sign of a systemic problem in society.

    UBI could help some of the poor to change their situation for the better but it will not fix the root of the problems and as long as that persists we will have poor people no matter what "band aids" are used.

  • by bluegutang ( 2814641 ) on Saturday October 13, 2018 @06:15PM (#57473188)

    This article proposes, instead of the UBI, something called "universal basic assets". Looking online, this seems to be a grab-bag of three things: 1) some form of income redistribution such as UBI, welfare, or progressive taxation, 2) government-provided services such as parks and libraries 3) nongovernment-provided services such as Wikipedia.

    How exactly does UBA differ from UBI? Assets #2 and #3 already exist. #2 can be supplemented by adding new government services, #3 cannot be supplemented because it's what individuals choose to provide. As for #1, we all agree that income supplementation is or will become necessary, but in what form? If the income provided is by UBI, then UBA ends up being exactly the same as UBI. If the income is provided by some other means, what makes that means better than UBI?

    In effect, the only difference between UBI and UBA is in the clarity of thinking. UBI identifies concrete problems (inequality is rising, some people are likely to end up without any marketable skills, government aid programs are inefficient) and proposes a concrete solution to all of them, with clear benefits and downsides that can be rationally debated. With UBA, in contrast, the thinking is a muddle and the only consistent idea is that capitalism is oppressive so we must look at the world in *some* way that is not capitalism. The 3 components have little in common, and seem lumped together only to provide the illusion that attempts (like UBI) to solve concrete problems are insufficient. As for the actual difficult problems that UBI tries to address, UBA doesn't bother to think about - it has no opinion on whether UBI or welfare or something else is best. Similarly, it does not provide any concrete suggestions for improving #2 or #3, the two other things it claims are

    Bottom line: UBA and this article don't seriously attempt to solve any problems, all they do is try to divide the world into Marxist oppressors and oppressed, and sling insults like "slaveowners" at anyone who isn't sufficiently oppressed. This is not a recipe for anything positive in the world.

    • Similarly, it does not provide any concrete suggestions for improving #2 or #3, the two other things it claims are

      ...necessary for livelihood.

      Wish you could edit comments here until the moment that they have been replied to or modded...

      • Similarly, it does not provide any concrete suggestions for improving #2 or #3, the two other things it claims are

        ...necessary for livelihood.

        Wish you could edit comments here until the moment that they have been replied to or modded...

        Would be nice! So, maybe reply to your post, copy & insert original post to comment box - with fix - and pre-pend "Ignore previous post, please!"?

  • We can imagine an UBI that empower workers. If the level is high enough that you can tell employers you are not interested by their projects, the story becomes different. But that requires a huge amount of money.

    Nothing impossible, but the scale is about socializing the whole labor market: Companies would pay an UBI fund to get the UBI paid workers abroad. The more a company pays, the more workers it can employ, but it still have to convince workers their project is worth it. Of course, this is a completel

  • Desperation (Score:5, Insightful)

    by sjames ( 1099 ) on Saturday October 13, 2018 @06:17PM (#57473202) Homepage Journal

    That sounds like a desperate last-ditch effort to discredit UBI. According to his logic, employment is just another tool to funnel money to Uber and Walmart as well, so we should all quit our jobs right now to stop them.

    OTOH, is we actually issue UBI, people won't need to work for Uber until they're too poor to work anymore. They can hold out for a real job that pays what their time and resources are worth.

  • by Qbertino ( 265505 ) <moiraNO@SPAMmodparlor.com> on Saturday October 13, 2018 @06:24PM (#57473232)

    The premise is nonsense. UBI is a means of distributing wealth in a economy where the marginal cost of producing goods and services approaches zero. It's a means to offer a transition into post-scarcity economy and a means to keep the ones at the lowest position in the pyramid at bay, because any other option would be more expensive. Rather having people who's jobs have been taken by robots grab kalashnikovs and start taking what they want society will chose to give them UBI. Those societies that will not do so when time is due will fail. UBI raises the bottom to which one can sick to something resembling a frugal but dignified life.

    Uber and other shared economy services is just a transition from "private owned cars" to "robot cars used as a commodity" by transition over something that resembles taxis but really is nothing other than people doing lowly work that will be replaced by robots within 10 years. The main part about Uber is nothing but a piece of software anyway. I expect something like Waymo cars becoming attached to the Uber API or something like that within the next 5 years.

    The Uber drivers of today will then get UBI. Where they don't, they will cause trouble, understandably.

  • by Skapare ( 16644 ) on Saturday October 13, 2018 @06:34PM (#57473262) Homepage

    once all the money is collected by those at the top, is it game over, or will they find a way to get more? if at that point they "let" UBI start, where will that money come from?

  • by Karmashock ( 2415832 ) on Sunday October 14, 2018 @01:53AM (#57474654)

    This has been true for the last 50,000 years in human society.

    If you render yourself logistically irrelevant... your political agency will wither to a similar irrelevance.

    I strongly encourage those attracted to the idea of something for nothing to appreciate that a society that doesn't need you... won't miss you.

    And whilst the current society for a lot of reasons won't push that line... probably not throughout all your life times... it may well in your children's or grand children's life times.

    The agency we have now is a result of past generations logistical utility to the society. Go through the periods of time and find periods where people had more or less agency and you'll find that people had more personal logistical utility to the society.

    The two variables correlate very strongly.

    If you render yourself a net drain on society... then society will not prioritize your concerns. And if a situation comes up where the society can solve a problem by giving you less... it will... because there's no negative consequence to giving you less.

    if you were doing something then giving you less would have a negative effect on whatever you were providing. But if you provide nothing... then there's no downside to shaving that to the bone.

    I say all this as a father loves his children... as brother cares for his brothers... etc etc... Don't fall into this, people. It is a death pact.

  • by blackhedd ( 412389 ) on Sunday October 14, 2018 @09:05AM (#57475526)

    To read the original post carefully, he is saying that the progress of capitalism has left us slaves to a small number of corporate overlords. I have to say, that's true.

    We let this happen because we enjoy having Amazon figure out what we want to buy, and make it easy for us to pull the trigger. Same with Uber. It's not really that bad, and also not that different from what is historically normal.

    Now, enslaving overlords aren't what they used to be. They have learned a lot of lessons from historical episodes like the French Revolution, the mass unemployment in Britain of the 1920s, the early Great Depression in the US, and many others. The lesson is captured in what someone upthread referred to as "pitchforkiness," and others refer to as the frog-in-hot-water syndrome: Don't let the slaves get too uncomfortable.

    It's incredibly good to be in the quiet ruling class of a prosperous, hopeful world. It really sucks to be the unquestioned despot of masses of people who feel that life is going the wrong way for them. Talk to billionaires and centi-millionaires (which I do), and you'll realize they totally get this.

    What is happening now is that the lessons of noblesse oblige are steadily being unlearned by the newest class of oligarchs, who like most people 35 and younger, are astonishingly ignorant of history. I actually date this movement to the Enron blowup, and the less-celebrated concomitant event, the destruction of its auditor Arthur Andersen & Co. I remember boardroom conversations at that time about the significance of this episode: that the relatively few people with true power have lost any ethical sense, and we all had better start getting it back.

    Guess what? We haven't, and it's gotten much worse since then.

    In terms of basic economics, this is showing up as deflation. Not in the textbook monetary sense, but in the fact (mentioned by many posters here) that it's getting noticeably harder for ordinary middle-class people to afford many economic goods that were easily within reach in more prosperous times. This is a really big and separate topic (it intersects with the disastrous aftermath of the 2008 GFC). But for present purposes it represents the lever by which the truly powerful are exerting their control.

    The extreme example of this is the situation in Silicon Valley. You'd think the C programmers making $240K/year and the data scientists literally making up to a million, have it made in the shade. So why are they constantly obsessing over real estate? They have plenty of money, but there's not enough for them to buy with it. That's a new kind of deflation (which many people mistake for inflation), and something like it is happening across all sectors of the economy, and in nearly every country. That's what we have to be worried about, because our economic overlords aren't doing anything about it.

    Among many other more important things, this led to the rise of Donald Trump, who achieved nothing more (or less) than recognizing it and giving it a name. We're rather lucky that he's a feckless idiot. A more capable individual, more plugged into the true economic power structure of Apple, Facebook, Amazon, Google, Tencent, Alibaba, etc., could wreak tremendous harm.

Keep up the good work! But please don't ask me to help.

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