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AI Government

Are Universal Basic Income Proponents Making the Wrong Arguments? (yahoo.com) 456

An assistant professor of finance at Stony Brook University criticizes the argument that technology "is quickly displacing a large number of workers, and the pace will only increase as automation and other forms of artificial intelligence become more advanced," specifically calling out Universal Basic Income proponents Elon Musk, Andrew Yang, and YCombinator Chairman Sam Altman: The problem is, there's no indication that automation is going to make human workers redundant anytime soon. Technologists probably tend to believe in automation-induced job loss because they're familiar with the inventions that are constantly forcing people to change what they do for a living. But even as these new technologies have been rolled out, the fraction of Americans with jobs has remained about the same over time. Meanwhile, evidence that automation causes job losses throughout the economy is slim... [Some studies] fail to say how many new jobs will be created in the process, so they don't give any picture of technology's overall impact on the labor market.

Thus, when UBI proponents make the dubious claim that basic income is necessary to save people from the rise of the robots, they undermine their case. They also send the message that they think a huge percent of American workers are simply too useless to be gainfully employed in the future -- hardly an appealing message.

The second dubious reason to support UBI is the idea that it can replace traditional forms of welfare spending, like food stamps and housing vouchers. Libertarian economist Milton Friedman supported a negative income tax for this reason, and modern-day libertarians often espouse this view as well. But there are reasons UBI will never be a one-size-fits-all solution. First, it's expensive. Giving all Americans $12,000 a year costs a lot more than giving money to poor people only.

He ultimately calls UBI programs "an interesting idea worthy of more attention and more experiments," but argues that the current "flawed" justifications for UBI "serve to distract the public from the simplest, most reasonable case for UBI... [T[hey should simply emphasize the idea's simplicity and fairness."
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Are Universal Basic Income Proponents Making the Wrong Arguments?

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  • "Simple" and "fair" are things you would test an idea against, but they're not root reasons for doing anything.

    • by lgw ( 121541 )

      We already spend a lot on welfare programs. Better to spend the same amount using a system that's simple and fair.

      It's a good argument. But we'd never replace existing spending in the US, we'd only add to it. And I don't support that.

      Of course, what we spend on wlefare programs is small compared to what we spend on Social Security and Medi*, and UBI will never replace that, so the whole argument is more posturing than practical.

      • If it was about welfare, it isn't anything new at all, and there isn't anything Universal about it.

        Cash welfare doesn't have a very good success rate at achieving positive side effects in society.

        You say that welfare is a good argument, but you don't support it. That puts you in no position to actually argue that it is a good argument, though. You agree you don't find it persuasive, so why do you want it to be a good argument? Because it is a losing argument, and you want to oppose it and win? That's silly.

        • by lgw ( 121541 )

          If it was about welfare, it isn't anything new at all, and there isn't anything Universal about it.

          Just the mechanism. Mail everyone a check, and increase taxes (even on the lower brackets) enough to mostly offset the cost. If you set it up right, people not working get about what they do today, people working part time come out slightly ahead, and it's a wash for everyone else.

          In the abstract, it's a clever approach and I like it. In the abstract.

          • people not working get about what they do today, people working part time come out slightly ahead, and it's a wash for everyone else.

            So some people get MORE, and NOBODY gets LESS?

            And we no longer have to work if we don't feel like it?

            That is amazing. You have convinced me.

      • We already spend a lot on welfare programs. Better to spend the same amount using a system that's simple and fair.

        And efficient. UBI is should be much more efficient than ad-hoc point solutions. That, to me, is the best argument I know of to replace welfare, food stamps, and all our other non-retirement social safety net programs with UBI.

        Of course, what we spend on wlefare programs is small compared to what we spend on Social Security and Medi*, and UBI will never replace that, so the whole argument is more posturing than practical.

        You're probably right. Were you thinking that was a bad idea or that it's just politically impossible? I'm in the "it's a great idea that will never pass" camp. But here's the thing. The stock UBI proposal ($1k/month to everyone) costs a lot. Like the entire US federal spending as of

  • by stevegee58 ( 1179505 ) on Sunday June 23, 2019 @01:49PM (#58810040) Journal
    I didn't hear you the first time.
    • You print the money. (Score:2, Interesting)

      by drinkypoo ( 153816 )

      You tie UBI to inflation, then you just print the money and hand it out. The problem with inflation is that it makes things unaffordable (a problem itself) which leads to hoarding, but if you have a steady and predictable rate of inflation and you hand people money to account for it, then that problem goes away — as do most of the others. It can cause some inefficiencies, especially in B2B transactions, but the general increase in commerce may well make up for that on its own.

      Meanwhile, increased infl

      • Re: (Score:2, Insightful)

        by stevegee58 ( 1179505 )
        I wasn't expecting an answer; I was being facetious. UBI is the the path to a modern remake of "The Marching Morons."
      • by blindseer ( 891256 ) <blindseer@noSPAm.earthlink.net> on Sunday June 23, 2019 @02:29PM (#58810248)

        You tie UBI to inflation, then you just print the money and hand it out.

        That's how you get runaway inflation.

        If the market cannot adjust to the value of the dollar then no one will accept the dollar as payment. They will accept only barter.

        Giving people $15/hour as a minimum wage when it was $7.50 before doesn't mean people can buy twice as much stuff. It means that those that can't produce $15/hour in value won't find work, the value of commodities will double, or more likely something in the middle.

        Giving people money for not producing any value won't mean the dollar is worthless, people will simply see the value of products adjust accordingly. If the amount of money given is adjusted to where that amount of money buys the same amount of stuff then that's just a downward spiral that may not have a bottom.

        • by Memnos ( 937795 ) on Sunday June 23, 2019 @10:59PM (#58811848) Journal

          If the minimum wage had kept up with inflation since 1968 (the high point of the minimum wage in constant dollars) it would be a little over $17hr. now, based on CPI data from the Federal Reserve. The Consumer Price Index (inflation, as commonly stated) is probably a bit high as an indicator, since it does not take into account consumers shifting around what they buy to the extent they can. The (Personal Consumption Expenditures index) is probably somewhat more accurate, and a bit lower. Still, however inflation is measured, the minimum wage has not kept up, even approximately.

          If a UBI is phased in, I think the minimum wage should be set to whatever it would have been without the UBI, minus the hourly amount of the UBI, and at some (decades) later point, eliminated entirely. Say if the minimum wage would have been $12/hr. and the UBI is $1000/month, then the minimum wage with UBI would be set to somewhere around $6.00/hr. This would be perceived by employers as a reduction in the cost of hiring an employee, benefitting commerce.

          Employers would notice one big difference however -- they no longer are their employee's only source of income, and they'll have to treat them better, however that gets manifested. This is in many ways a good thing, because while employers/owners do accept the majority of the "long term" financial risk, they almost always have far less immediate risk when negotiating with an employee. This kind of asymmetry in an economic relationship takes away a lot of the "freely entered transaction" aspects of it, and that's economically not a good thing.

          So how does it get paid for? Well, for those who work they wouldn't pay a thing at very low income levels. At higher, but still quite low, income levels the IRS would start taking a bit of that UBI back, and that percentage amount would increase the more you made. (At no point, however, would working more get you less money, like welfare can do now.) At a certain income level, the IRS is taking it all back so it's financially neutral relative to the current tax setup. Above that level, you would be paying it all back and then some. If you work in software, for example, there's a good chance you do that now, especially if you have moved along in your career.

          But you make UBI and all other non-healthcare assistance an opt-in either or proposition. If you are on some form of public assistance (again, not healthcare) you are given a choice, if you are provably a citizen -- take the UBI and we'll stop hassling you, or can choose to continue the way you are now, but not both. Making it a choice will largely silence the complaints about something being taken away. That will make it possible to incrementally sunset the existing welfare programs -- people will choose to on their own.

          If you are a high-income taxpayer, then you are paying the leftover amounts for either the current public assistance scheme or the UBI one, for any given hypothetical beneficiary. One pays more people and is highly efficient (cutting checks and withholding wages, plus validation of citizenship, age of majority, and a pulse) and the other has a lower payout to the recipient, but a shitload of inefficiencies and government intrusion and perverse incentive associated with it.

          If it is paid for (at least to the extent the government currently pays for things) and not funded by printing dollars, it will not increase the money supply, so it won't be inflationary in that sense, except as a short term "shock". What it may do is impede commerce/work by reducing the penalty for not working, but this is not a comfortable amount for anyone to live on, much less build a future on. Conversely, the reduction of the minimum wage as perceived by employers might increase commerce and consumption, mostly at the lower income levels. The demand curve for employment will shift, but the supply curve will shift too, likely not as much.

    • Re: (Score:2, Informative)

      by Anonymous Coward

      This is a completely empty argument against UBI. There is more than enough money in the existing social assistance and EI payouts that, if redirected, would cover almost all of the cost of UBI. If UBI was implemented you could also scrap other, related programs, like government pension plans. In the long run, maintaining one UBI program would actually cost less.

      I'd also like to point out that running UBI for a decade would cost less than the F-35 program as so far. Yet no one is asking "Where is the money c

  • Disagree. (Score:5, Insightful)

    by Gravis Zero ( 934156 ) on Sunday June 23, 2019 @02:07PM (#58810144)

    The problem is, there's no indication that automation is going to make human workers redundant anytime soon.

    Just look at self-driving car tech. Once it becomes reliable and trusted then it's game over for millions of truckers.

    Perhaps there has been a failure of imagination but it's not on the part of the proponents of UBI.

    • It's easy to see jobs that will be lost.
      Yet, let me pose a thought experiment.

      Would you rather the government just give a UBI to people to produce nothing.

      Or would you rather the government continue/expand funding in areas that need human workers?

      You'll end up with much the same issues. How do you fund it and organize it. If you think about most Western economies are probably *something* like 50%+ government run/funded today. Healthcare, Education, Transit, Police, Military, R&D investments... The exact

    • Re:Disagree. (Score:5, Insightful)

      by phantomfive ( 622387 ) on Sunday June 23, 2019 @04:48PM (#58810792) Journal
      There's no indication self-driving cars will become reliable any time soon.
      • There's no indication self-driving cars will become reliable any time soon.

        There's plenty of evidence that self-driving trucks will be able to do long hauls better than current truckers, many of whom are poorly trained, and all of whom are meatbags. It'll be some while before they are able to handle the whole job, but they'll soon be able to do the highways [caranddriver.com], and the potentially well-organized jobs with slow motion [cnn.com] and lots of idling like port drayage.

        • but they'll soon be able to do the highways [caranddriver.com],

          Can they handle the cone zone?

          • Can they handle the cone zone?

            Google seems to be able to handle it, including hand signals. I don't see why the trucks couldn't.

          • You haven't been keeping up with waymo's progress because that was a point of interest for them. Yes, construction zones are things they can handle.

    • by Kohath ( 38547 )

      Just look at self-driving car tech. Once it becomes reliable and trusted then it's game over for millions of truckers.

      That presumes a story where that happens over a short period of time. Another possible story is that it happens slowly over the course of 15-30 years, as parts of some routes are automated, some are manually driven remotely [wired.com], and others are human driven, with automation slowly taking over more and more of the routes.

      Regardless, why should we enact a universal program for everyone in order to solve worker dislocations in one or two industries?

      • That presumes a story where that happens over a short period of time. Another possible story is that it happens slowly over the course of 15-30 years

        Simply put, it's the free market and truckers can't compete with machines that never tire and don't get paid. The company that invests the most heavily is most likely to get the most contracts to transport goods, get greater outside investment and expand the most. It's basic capitalism, dummy.

        Regardless, why should we enact a universal program for everyone in order to solve worker dislocations in one or two industries?

        There are many reasons, including simplification of the welfare system. For everything that can be automated, there is someone working toward automating it and nobody is keeping track of what may suddenly displace w

        • by Kohath ( 38547 )

          ...solve real problems when your solution is non-existent.

          Made-up stories about an imagined future are not "real" problems.

    • Perhaps there has been a failure of imagination but it's not on the part of the proponents of UBI.

      The cannonical example is to back up 100 years. Some huger percentage (50%? 80%? 90%? I'm not sure) of the population farms. We've got this new invention, a "tractor", which is going to let Farmer Bob plow 10 times as much acreage as he did with a mule. And with this new "synthetic fertilizer" stuff the Germans invented, Farmer Bob can product twice as much food per acre as before. What are we going to do now that we only need 5% of our people to farm? I just can't imagine! We've always been farmers! There

  • by rsilvergun ( 571051 ) on Sunday June 23, 2019 @02:18PM (#58810188)
    Manufacturing was the backbone of the American Middle Class and large swaths of it have been automated away in the last 30 years. To the point where there's not much point [youtube.com] to bringing it back because the jobs aren't coming back.

    We've got 2 million cashiers and 2 million drivers who are likely to be made redundant sometime in the next 20 years. What exactly are they going to do for a living? And be specific. We can't all be HVAC repairmen and those Service Sector jobs everybody need a strong middle class to support.

    Millennials are both spending less [bbc.com] and earning less [cnbc.com]. How the hell are they going to keep a service sector economy going.

    This strikes me as another classic "Here's why it would be a mistake to do anything that would inconvenience the rich [pics.me.me] articles.

    I remember an economist talking about how the economy was going to shit for the working class and he used a phrase that really stuck with me: Fragile Existence.
    • So, with people spending less and earning less, how UBI will be supported?
      • Two words (Score:5, Insightful)

        by rsilvergun ( 571051 ) on Sunday June 23, 2019 @07:44PM (#58811314)
        Robot Tax.

        We're not producing less, we've just lowered the value of labor by reducing the need for it. So you tax at the point of creation. Throw in a wealth tax (everyone reading this should be familiar with those since if you own a house you pay property tax, which is a wealth tax, and a regressive [wikipedia.org] one at that that) and you're all set.

        Or just double down on "Taxation is Theft" nonsense and get ready for a Battle Angle Alita style dystopia of ultra wealthy and poor subsiding off the scraps like dogs. Your choice.
  • by RightwingNutjob ( 1302813 ) on Sunday June 23, 2019 @02:33PM (#58810270)
    is the very crux of the problem.

    The lack of people becoming unemployed over time with more automation is a very fair criticism of the economic models UBI proponents seem to be basing their assumptions on.

    A second and even more glaring error is the fact that even in this day and age, manual labor in high-volume manufacturing has not gone away. It has simply moved to places like China, Bangladesh, Vietnam, Mexico, and other locations that aren't immediately visible from the tops of ivory towers located in the West. So on top of the fact that there are no wide-scale job losses, the fact that UBI proponents point to automation as the cause of job losses in manufacturing that do occur when it is clear to anyone who wants to do half an ounce of research that the jobs didn't go away, they moved because of a combination of free trade policy, strict environmental laws and labor-friendly regulations in the US, and an unfortunate cultural aversion to manufacturing and the construction and maintenance of the necessary civil infrastructure for manufacturing that is found among the types of people who go to Ivy League schools and end up influencing public policy...that all shows that UBI is the wrong solution to the wrong problem, and the answer to why seemingly-smart people are pushing it is that they really aren't that smart, they've just bubbled up to the top of the chattering classes.
    • every 5 years? (Yes / No)

      Are humans getting significantly better (cognitive skills, manual skills) every 5 years? (Yes / No)

      If you answered Yes, No

      then we have a problem and UBI will be necessary.

      If you answered other that Yes, No, you need to research harder and think harder.
      • by RightwingNutjob ( 1302813 ) on Sunday June 23, 2019 @03:06PM (#58810422)
        No, actually. AI is not getting better every five years. It is limited by the imagination of the humans programming it.

        Contrary to popular imagination, we do not live in Gene Roddenberry's utopia, and we never will. You will always have to work for a living.
        • People will have to figure out what to do with their time.

          Of course, if we don't figure out the sustenance distribution, people will be playing war most of the time. But even at that, we will be pathetically lame compared to the automation.
        • by SoftwareArtist ( 1472499 ) on Sunday June 23, 2019 @06:35PM (#58811142)

          No, actually. AI is not getting better every five years. It is limited by the imagination of the humans programming it.

          That answer is so wrong in so many ways.

          The progress in AI in the last five years has been mind blowing. If you don't work in the field, maybe you aren't aware of all the things that have been happening. Look at the images at https://www.theverge.com/2018/... [theverge.com]. The ones on the left were generated by a state of the art deep learning system in 2014. The ones on the right were state of the art in 2018. Perhaps you'll notice a small difference. Or the amazing progress in computer vision [qz.com]. Maybe you just take it for granted that you can click the "translate" button in your browser to translate documents between languages, and you don't realize what massive jumps have happened in machine translation in the last few years, again thanks to modern deep learning techniques. Progress has been amazing, but if you aren't paying attention it's easy not to notice. Computers just do things they couldn't do before, but we're so used to that we take it for granted.

          Then you claim AI is limited by the imagination of the humans programming it. Totally wrong. That used to be true back in the old days (before about 2012). To solve a problem, you had to design an algorithm to solve it. But today you just build a generic model, throw a lot of data at it, and it figures out an algorithm on its own. That's how all those advances I described above were done. No one wrote a program to generate faces or translate English to Japanese. They just gave it a lot of training data and it figured out a solution on its own. And that's why AI is progressing so much faster than it was ten years ago.

    • manual labor in high-volume manufacturing has not gone away. It has simply moved to places like China, Bangladesh, Vietnam, Mexico

      You haven't kept up with the times. Automation is coming to those countries too. It's easy to find recent news stories about that. For example, Why China is spending billions to develop an army of robots to turbocharge its economy [cnbc.com] Or how about, iPhone manufacturer Foxconn plans to replace almost every human worker with robots [theverge.com]. Or this one. How automation will impact garment workers in Bangladesh. [electricrunway.com]. It's happening everywhere, not just places "immediately visible from the tops of ivory towers located in

  • It's interesting how it's always economists and financiers telling us automation is great, and technologists telling us automation is a problem.

    Either understanding the economy is stupendously difficult or technologists have the ability to see black swans that economists don't.

  • by iamacat ( 583406 ) on Sunday June 23, 2019 @07:59PM (#58811368)

    If people are suffering from shortages of healthy food, housing, health care and education, it's a sign of there not being enough farms, construction companies, doctors and teachers. Or of production of these goods and services being insufficiently automated rather than too automated. What these problems are NOT a sign off is shortage of dollar bills. If you throw the later around in the wind, the best case is that you simply make a different group of people poor. The more likely case is that you suppress work and build up of production capacity, making humanity poorer than they could have been as a whole.

  • by dermond ( 33903 ) on Monday June 24, 2019 @01:57AM (#58812280)
    this is the main point: rough guesstimate: about half of the jobs we have now are useless or harmful. that is: they do not produce something that is useful for us but only something that is useful within the capitalist system - most often to create artificial demand for something that otherwise would not be needed. a few example: advertising: only has one product: our discontent with what we have. or take planed obsolescence. most goods could easily be much more durable. and then there is "defense" and war. the easy way to create now jobs: bomb a country into oblivion so that you need to build it up from scratch. and then there is gambling and "financial products". etc.. with the ecologic footprint most products have: it would be much better if the people working in those jobs would get payed without creating useless crap. and the ratio of useless jobs vs. useful ones can only increase with more automation... this is why we need an UBI.
  • by 0111 1110 ( 518466 ) on Monday June 24, 2019 @01:58AM (#58812284)

    When I was a teenager at university studying Electrical Engineering and hoping to get a job working in Artifical Intelligence or at least as a computer programmer Libertarianism seemed like the fairest and most efficient way to distribute income. To each according to his ability to make money.

    However after graduating and finding that there were no jobs available at all because of the 'can't get a job without experience and can't get experience without a job' thing my opinion has changed somewhat. The system corporations use for hiring is so unbelievably suboptimal and inefficient and unfair as well and that is the filter that every single human being must pass through before they can be a part of the system. So I do believe that some government interference that goes to the very core of the capitalist system of commerce is necessary. If left to their own devices corporations and even small private companies make completely short sighted and stupid hiring decisions such that the system as a whole does not work even close to optimally. I was hard working and smart (top 1% according to standardized testing) and I could not find *any* job after uni--not even working in retail. Almost everyone wanted previous experience and the very few companies that didn't require it certainly preferred it and since I did not have any work experience I would just lose out to those who had it.

    I think some kind of UBI would be nice if it were economically viable. It is retarded to give it to *everyone* though and any sort of large amount is probably just not viable. What I would want to simulate on a computer is something like a UBI of 600-800 USD per month and only available to someone who does not currently have a job or to someone with an income of maybe 15000/year or less and yes they would have to quit their job to qualify for it making that position available to someone who actually wants it. Ideally the person might have to show that they tried to get a job but could not, but it's hard to prove that you really tried your best to find a job.

    As far as the Robot Revolution that may happen at some point in the next 10,000 years I don't think we should be over-anticipating it. When it happens it happens and we will have to deal with it. Certainly we are not anywhere even close to that now as anyone who actually works in AI could tell you. Yes we have advanced robots from companies like Boston Dynamics, but they don't have the intelligence to replace humans in most cases. Actually the problem Boston Dynamics was having was that their robots were not even intelligent enough to do the stuff they showed in their videos autonomously. They had to be controlled remotely I think. But I don't think they were really trying to combine AI with their machines at that point. Maybe now they will get more involved with that.

Think of it! With VLSI we can pack 100 ENIACs in 1 sq. cm.!

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