Universal Basic Income

sfoster

Staff Member
Moderator
There are roughly 150 million jobs in America (according to chatGPT)

What happens if 100 million people lose their jobs to AI?
Do we give everyone $4,000 a month and have a universal basic income.

Does money become worthless, and all we need are houses, food, water, prescription drugs and electricity.
Government drives around and gives us the food and water like bread lines in the great depression.

It's a very real threat or opportunity looming on the horizon, depending on your perspective and how it plays out.
One thing most of us can agree on - it sucks to wake up really early to go to work.
 
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What happens if 100 million people lose their jobs to AI?
Do we give everyone $4,000 a month and have a universal basic income.
I think there's room to quibble over both numbers but in principle, I see that that as the best (but admittedly unlikely) approach.

AI will generate a lot of additional profits for companies (existing & new) while eliminating jobs. That money can be used to keep people fed and housed.

It's in everyone's best interest (in my opinion) to keep people fed and housed and with their prescription drugs etc.

I don't see any reason why money would become worthless (although I could be missing something) but the concentration of wealth in the top tier would likely increase.

This recent article from the Saint Louis Federal Reserve summarizes the current wealth distribution in the U.S.:
The State of U.S. Wealth Indequality
 
I think there's room to quibble over both numbers but in principle, I see that that as the best (but admittedly unlikely) approach.

AI will generate a lot of additional profits for companies (existing & new) while eliminating jobs. That money can be used to keep people fed and housed.

It's in everyone's best interest (in my opinion) to keep people fed and housed and with their prescription drugs etc.

I don't see any reason why money would become worthless (although I could be missing something) but the concentration of wealth in the top tier would likely increase.

This recent article from the Saint Louis Federal Reserve summarizes the current wealth distribution in the U.S.:
The State of U.S. Wealth Indequality

The reason money would become worthless is not intentional, just a worst case scenario of economic collapse, like mass inflation where a piece of bread is worth a million dollars or something like that. It would be a disaster for sure.

The wealth gap is really unfortunate... the biggest indicator of economic success is knowing someone with money in your community or environment. Conversely if everyone you know is dirt poor nobody can help anyone else out and they all feel stuck without any social mobility.

You're right about the interest in keeping everyone housed and fed!
America has too many guns. If peoples families are starving to death it's gonna get real ugly.
 
The reason money would become worthless is not intentional, just a worst case scenario of economic collapse, like mass inflation where a piece of bread is worth a million dollars or something like that. It would be a disaster for sure.

Sharply higher inflation would be a possible outcome of a huge increase in government cash benefits to a large swath of the population, just as the Covid era benefits led to the inflation that we're just now coming out of. I don't see it as a potential fall out of AI-related mass unemployment, however - the mass unemployment of the Great Depression in the 1930's led to sharp declines in prices (deflation) because no one had any money.
 
Sharply higher inflation would be a possible outcome of a huge increase in government cash benefits to a large swath of the population, just as the Covid era benefits led to the inflation that we're just now coming out of. I don't see it as a potential fall out of AI-related mass unemployment, however - the mass unemployment of the Great Depression in the 1930's led to sharp declines in prices (deflation) because no one had any money.
I never even took an econ class in college, so I absolutely defer to your expertise here.
It's good to hear you don't think we're at risk that some of catastrophic collapse.

It's gonna come down to how well we implement UBI then.
 
Unfortunately, I think we're a (very) long way away from getting a political consensus on implementing it at all.
It'll never happen proactively.
Like you were implying before, it's in their interest to do it if enough people lose their jobs - due to civil unrest from mass unemployment.

The 2030s are going to be absolutely wild. I hope its not another roaring 20s followed by a great depression.
 
I would support a universal basic income if all government services were to be shut down, but I'm a free-market aficionado.

I thought political discussions were off limits here.
 
I don't see this as political (Democrat/Republican/presidential election) as much as philosophical. But if @indietalk thinks it is, I won't argue :)
The issue of a government giving taxpayers' money to others is a VERY political issue. But I agree it's not overtly political, and I'll go with whatever the management decides.

Are we talking about people talking about something? Sounds like a plot for a movie.
 
I would support a universal basic income if all government services were to be shut down, but I'm a free-market aficionado.

I thought political discussions were off limits here.
This is an economic discussion, it's not about republicans or democrats, or who we have to vote for, just the future of the economy.
 
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@sfoster, OK. So we're now talking about people talking about topics on this forum. I see a trend emerging. :evil:
It's definitely an interesting topic.
Kind or relevant to all of us, since a lot of people are worried about losing their film careers to AI right now... what happens to all of us after?

Something that is on a lot of peoples minds
 
@sfoster, I've had that concern, as the legal structure changed over the years. Some lawyers have lost their jobs because of those changes but found work in other areas of law. As we discussed, change will come, and people must find ways to deal with it. History has shown that, while many will feel great pain, in the end, humanity would still be better off as a whole, and the main question is what to do for those who are left behind - like those afore-mentioned lawyers, they have to modify their skills to fit the new environment, and many have done successfully done so.

The key is adaptability..
 
@sfoster, I've had that concern, as the legal structure changed over the years. Some lawyers have lost their jobs because of those changes but found work in other areas of law. As we discussed, change will come, and people must find ways to deal with it. History has shown that, while many will feel great pain, in the end, humanity would still be better off as a whole, and the main question is what to do for those who are left behind - like those afore-mentioned lawyers, they have to modify their skills to fit the new environment, and many have done successfully done so.

The key is adaptability..
Yeah, my girlfriend was thinking about becoming a paralegal and I talked her out of it...
I said everyone will have their own AI assistant in the future, careers as an assistant are one of the most at risk jobs.
 
Just FYI, Open AI, the world's largest AI company, is, and has been dedicating a major chunk of all it's research time towards engineering a system of UBI that would function well.

I strongly suspect that it's because they are already aware that their work specifically will decimate the job market.

As far as political discussions on IT, while that's up to IT himself, I don't personally know of any regulations on what people discuss here. If I have to watch what I say on a site for fear of being attacked, I just go to another site. It's a big world out there. I'd also note that until the demise of the news feed, this site was actually about 25% political speeches by volume, and I never saw anyone kicked off for having any particular stance. Most bans seem to center around "drunk and disorderly", or disrespectful behavior towards a respected member. IT, feel free to correct me if I'm wrong. It's not a political site, but to my knowledge civil discourse isn't policed too much.

Now to the important part, that I think is difficult for people to grasp. This upcoming situation with AGI, and it's many cousins, is NOT just like when they closed down the sewing machine factory because they had a robot sewing machine, and those people had to go across the street and get a better paying job at the auto shop. This is moving rapidly towards the inexpensive replacement of all labor, both mental and physical. The impact this will have on society will be unprecedented, so attempts to cite precedent are futile.

Rich people will still give other rich people money for jobs that don't need to be done. They are doing that all the time right now, without AGI. Older people still print out emails on a printer, even though they could simply read them off of the screen. I've seen them do it. That type of thing will happen too. However, if you live outside the fantasy world bubble of inherited wealth, and have to compete, you will not be able to compete in the market by hiring your entire immediate family for 400k a year each to alphabetize documents or summarize papers. You cannot afford 120k a year for a truck driver, when your competitor uses trucks that drive and maintain themselves, with fewer lawsuits, less insurance, and a better safety record. This is not going to be "just another time where people have to move from one job to another". This is different, and we have absolutely zero experience with what's about to happen. Here's a video, from the real world, of 2 dozen rich people basically trying to screw in a light bulb with a few million in funding. Watch this advertisement that THEY filmed and published, and see if you think a 5th grader could have ironed this out for a candy bar. My dad's lifetime income was lower than the cost of this "solution".


The truly sad thing about all this is that if society were smart, and if people were actually good, as opposed to simply believing that they are good, we would be barreling towards a Utopia. I can say with absolute certainty that AI COULD, EASILY, create for us a world of plenty. A world where every person had a good life, with all their needs met, and opportunities to explore life with a freedom formerly reserved for kings. I don't think that will happen though. Through greed, selfishness, ideological thinking, and the predictable percentage of character flaws per million, the people in power will use this to hoard wealth on a scale never before seen, and for the first time ever, there won't be any way to earn it back.

There are good people out there, even rich people, even people in power, some of them are trying to do the right thing. The problem is that even if they were exactly right about what right and wrong actually is, much of that changes from year to year as the circumstance changes. So a perfectly moral person from 1888 might gun down a drunk person for stealing a horse. It's moral because people back then would have to watch their kids starve in the winter if they didn't have that one horse to plow a field, or deliver the mail, or whatever their job was. So a person learns ethics, CIRCA whatever time they start, and then it takes them decades to become a powerful influence on society. The less moral they are, the faster they get rich. Back to that horse, let's say you rose to power over a 50 year period, and you had rock solid certainty that horse thieves deserved summary execution. There are cars now. Teenagers are sometimes given stables full of horses as a birthday present. Nobody starves without a horse. It's just a toy for people now. But this person's moral code is set in stone, based on the understanding they developed in a different CIRCUMSTANCE, so they want to force a reality where the world THEY became comfortable with during their period of arrested development still exists. It's 1972 and you're a lawmaker who grew up when people were all saying "weed makes you murder people and rape animals" And gradually we as a society learned that there was zero truth to that, but in the mean time, these old guys threw fathers, daughters, and anyone who they didn't like in prison for life destroying stretches, for crimes such as buying things now available to the public at a gas station. Over and over, we've seen people hurt others en masse due to outdated ideologies.


This is what I think will happen with AI. People who grew up in the depression era, deciding on our behalf that everyone who isn't throwing themselves down a mineshaft is a greedy, entitled, lazy, stupid person, who deserves to die from a preventable medical condition. Even when there really is a day when there is more than enough to go around without such sacrifices being necessitated. 100 empty houses for each homeless person in America today. So that people can feel more important than other people. Sadly, I see a day of great hatred and class warfare ahead, and I suspect it's going to get violent. This will be mankind's fumbling of our greatest gift, we will take the opportunity for all people to live in peace and prosperity, and we will turn it into a civil war on the basis of dimwitted ideologies, each a different mask for the supremacy of one groupthink tribe or another.


Last year, I tasked an AI with explaining to me, with adjustments for all differences in global economies, how much money there was available for every man, woman, and child on earth. It's about 30 grand per year. That means that even if you went full communist (which I do not support) an average American family would have a default household income of around 120k. It's not great, but it's not bad. I don't think we should do that exact thing, but it's a baseline to provide context. The interesting thing about that fictional scenario is, that the better you were at working together or simply living in harmony with others, the better your life would likely be, in contrast to our current system, where the more fights break out on facebook, the richer Zuckerberg gets. We have seen this in older European countries where families commonly pool wealth across generations, and people of median income are now living quite well.

Here's what I think makes way more sense. Look at the charts on American prosperity over the decades. During the middle part of the 20th century, pre Reagan, we graduated tax on personal wealth to a high degree. You need to work 3x as hard as the next guy if you want to make 10x as much salary, by the time you want to displace 1000 people, we turn up the difficulty. People with more money than they could ever spend got taxed so much it was hard to continue on, and against their best efforts, they actually had to give another human being a chance to live once in a great while. It was the happiest and most universally prosperous time in our history. Not just one person per city with a billion dollars and everyone else starves, but one guy with 10 million dollars and a thriving city of happy people raising families at a decent income level. You don't need communism, capitalism works way better, but you need to have limits so that individuals don't death spiral into extreme, psychopathic levels of personal greed that destroy the lives of millions of people for myopic and self centered reasons based around the maladjusted psychological needs of one individual.

About the 4k a month income comment, that sounds good, but it's mathematically impossible right now. All the money in the world would only come up to about 2.5k per person, and that's not accounting for things like infrastructure and military. If you implemented UBI right now, with opportunities to work and earn preserved, and paid for stuff like bridge and water tower repair, you'd end up with about a grand a month. What's new about the AI age, is just a shift in the base volume of overall production. Once the world is producing 10k worth of goods per person per month, this whole thing becomes a completely different proposition. Good news, that can happen with AI. Bad news, we as a society are not mature enough to take the win, and will likely find ways to make vast numbers of people suffer needlessly in an attempt to hold on to values born in a time when resources were 100x as scarce.

We've talked a lot this decade about the evils of slavery, and I think we all agree that forcing one person into servitude under another based on things they had no control over is bad. So my question is, if the combine is out there harvesting corn on autopilot, do we really NEED to keep forcing everyone to go work the fields. Why? Everyone suffers to some degree, that's life, but the distinction we need to address is which aspects of this issue are real, and which are man made. If we don't need suffering for some survival based purpose, we should never again intentionally create it. This coming decade could be the beginning of the end, or the end of the beginning, dependent on how we as a society rise to the occasion.
 
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I don't personally know of any regulations on what people discuss here.
If you're curious they are listed here
 
If you're curious they are listed here
So a soft wall on politics, that really only gets enforced if things get ugly. Not at all unreasonable. Want to talk opinion or philosophy, do it in the Lounge, we're in the lounge section. If I'm reading this correctly, it seems like everything is just fine.
 
Interesting post Nate.

Yeah there's a lot of people in China and India.

I was totally spitballing with that number, but you've gotta understand I'm an american, so I'm not thinking of people in other countries when I said 4k/person

Excited Season 3 GIF by The Simpsons


Edit: For real though there are other countries that are enemies of ours, and I am not gonna go to work so I can give them money.
Some kind of global government communist system is really a worst case strawman scenario where you're working for your enemies.

The real concern here is our friends and families losing their job and having no income and then what do we do as americans?
lets not get too theroetical, what can people really do?

Or speak for your own country if youre posting from elsewhere and think the AI collapse of jobs might happen.
 
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I heard a story from one of the factory owners in baltimore.. I can't remember the exact numbers but it was something like this...

When he replaced human staff with automation, he cut his costs by 50%, and the machines were so efficient he was able to double production and increase his gross profits by 200%

Cut costs in half and double your sales at the same time.
It's an irresistable siren's call to anyone that likes money and owns a factory, and that mentality and capability will soon spread to every industry on the planet, except for reality tv.

episode 12 abc GIF by The Bachelor


In America you have to pay for your employee's health care, so it's really expensive to have full time staff.
 
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