This political cycle has seen some of the most innovative ideas in the modern era. For better or worse these ideas, like Trump ending NATO or Bernie Sanders calling for a $15.00 minimum wage, are calling into question the core ideas about what it means to be an American in the 21st century. Perhaps one of the most radical ideas being proposed from the far left is a universal basic income, where Americans would be given a set income that is tax-exempt as a basic right. This seems crazy at first, but here are three reasons why it might be time for a universal basic income.
First: other countries are beginning to introduce basic incomes. Switzerland will decide this June if their citizens should be given $2,000 a month as a basic right. With all indications pointing toward a passing vote. Other nations like Sweden are also proposing legislation to be enacted later this year. Although, you may think that's great for them, could America do this? The answer is a definitive maybe. America has much more money than these other nations, so it isn't so much a matter of cost, but a matter of will. This would mean higher taxes on everyone but could grow the economy by adding additional funds to the monetary supply without causing inflation because of globalization keeping market prices low. Just because other nations are doing it doesn't mean we should. However, I think America should look toward these nations and see how it goes.
Second: the threat of automation. Tesla, Google and GM are all in an arms race for self-driving cars, which is great, but what about the Uber drivers? If self-driving cars become ubiquitous, three million people could be out of work in the transportation industry. Although, it's not just cars, it's also the service industries. More and more companies are trying to cut costs when it comes to sales staff and as automation gets better, machines will only grow in demand for the service industry. This could mean millions more out of work. Obviously, people would need to develop new skills and go back to school if they want to be marketable in the new economy, but that takes money. A universal income could be the bridge that gets millions of people through the transition period between jobs. Financially, things would still be hard but having an income along with a part time job could aid in the coming years as millions go back to school.
Third: the economy has grown so why shouldn't my buying power? In the past five years, America's economy has grown well adding more than $500 billion dollars to its output. However, buying power for the average person has gone down. Today's college graduates are eight times more productive than their parents due to technology and education, yet they can't buy as much. It's not like the money has disappeared, but it has been allocated to the higher end of the economy. A universal basic income would certainly give people the buying power they deserve for their productivity.
This election is crazy and will keep being crazy. However, maybe it's time to think even farther outside the box and consider the benefits of even more radical ideas. Let's see how the Swiss handle it first though because if it blows up, I'd rather keep the system we have.
