21 Lessons for the 21st Century(15)
It is debatable whether it is better to provide people with universal basic income (the capitalist paradise) or universal basic services (the communist paradise). Both options have advantages and drawbacks. But no matter which paradise you choose, the real problem is in defining what ‘universal’ and ‘basic’ actually mean.
What is universal?
When people speak about universal basic support – whether in the shape of income or services – they usually mean national basic support. Hitherto, all UBI initiatives have been strictly national or municipal. In January 2017, Finland began a two-year experiment, providing 2,000 unemployed Finns with 560 euros a month, irrespective of whether they find work or not. Similar experiments are under way in the Canadian province of Ontario, in the Italian city of Livorno, and in several Dutch cities.24 (In 2016 Switzerland held a referendum on instituting a national basic income scheme, but voters rejected the idea.25)
The problem with such national and municipal schemes, however, is that the main victims of automation may not live in Finland, Ontario, Livorno or Amsterdam. Globalisation has made people in one country utterly dependent on markets in other countries, but automation might unravel large parts of this global trade network with disastrous consequences for the weakest links. In the twentieth century, developing countries lacking natural resources made economic progress mainly by selling the cheap labour of their unskilled workers. Today millions of Bangladeshis make a living by producing shirts and selling them to customers in the United States, while people in Bangalore earn their keep in call centres dealing with the complaints of American customers.26
Yet with the rise of AI, robots and 3-D printers, cheap unskilled labour would become far less important. Instead of manufacturing a shirt in Dhaka and shipping it all the way to the US, you could buy the shirt’s code online from Amazon, and print it in New York. The Zara and Prada stores on Fifth Avenue could be replaced by 3-D printing centres in Brooklyn, and some people might even have a printer at home. Simultaneously, instead of calling customer services in Bangalore to complain about your printer, you could talk with an AI representative in the Google cloud (whose accent and tone of voice are tailored to your preferences). The newly unemployed workers and call-centre operators in Dhaka and Bangalore don’t have the education necessary to switch to designing fashionable shirts or writing computer code – so how will they survive?
If AI and 3-D printers indeed take over from the Bangladeshis and Bangalorians, the revenues that previously flowed to South Asia will now fill the coffers of a few tech-giants in California. Instead of economic growth improving conditions all over the world, we might see immense new wealth created in hi-tech hubs such as Silicon Valley, while many developing countries collapse.
Of course, some emerging economies – including India and Bangladesh – might advance fast enough to join the winning team. Given enough time, the children or grandchildren of textile workers and call-centre operators might well become the engineers and entrepreneurs who build and own the computers and 3-D printers. But the time to make such a transition is running out. In the past, cheap unskilled labour has served as a secure bridge across the global economic divide, and even if a country advanced slowly, it could expect to reach safety eventually. Taking the right steps was more important than making speedy progress. Yet now the bridge is shaking, and soon it might collapse. Those who have already crossed it – graduating from cheap labour to high-skill industries – will probably be OK. But those lagging behind might find themselves stuck on the wrong side of the chasm, without any means of crossing over. What do you do when nobody needs your cheap unskilled labourers, and you don’t have the resources to build a good education system and teach them new skills?27
What then will be the fate of the stragglers? American voters might conceivably agree that taxes paid by Amazon and Google for their US business could be used to give stipends or free services to unemployed miners in Pennsylvania and jobless taxi-drivers in New York. However, would American voters also agree that these taxes should be sent to support unemployed people in places defined by President Trump as ‘shithole countries’?28 If you believe that, you might just as well believe that Santa Claus and the Easter Bunny will solve the problem.
What is basic?
Universal basic support is meant to take care of basic human needs, but there is no accepted definition for that. From a purely biological perspective, a Sapiens needs just 1,500–2,500 calories per day in order to survive. Anything more is a luxury. Yet over and above this biological poverty line, every culture in history defined additional needs as ‘basic’. In medieval Europe, access to church services was seen as even more important than food, because it took care of your eternal soul rather than of your ephemeral body. In today’s Europe, decent education and healthcare services are considered basic human needs, and some argue that even access to the Internet is now essential for every man, woman and child. If in 2050 the United World Government agrees to tax Google, Amazon, Baidu and Tencent in order to provide basic support for every human being on earth – in Dhaka as well as in Detroit – how will they define ‘basic’?
For example, what does basic education include: just reading and writing, or also composing computer code and playing the violin? Just six years of elementary school, or everything up to a PhD? And what about healthcare? If by 2050 medical advances make it possible to slow down ageing processes and significantly extend human lifespans, will the new treatments be available to all 10 billion humans on the planet, or just to a few billionaires? If biotechnology enables parents to upgrade their children, would this be considered a basic human need, or would we see humankind splitting into different biological castes, with rich superhumans enjoying abilities that far surpass those of poor Homo sapiens?