Imagine if the government payed you every week or two for doing absolutely nothing. This is an idea that may end up coming true in the future as governments decide how to handle the current and future increase in unemployment due to automation. Once again, Pedro Nicolaci at business insider gives some solutions. Pedro describes ways such as a basic income and negative income tax to help deal with the high unemployment rate that will likely be coming in the future due to automation.
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| Unconditional Basic Income? |
One solution to a future high unemployment rate is the controversial universal basic income. “The premise is that by giving the entire society a financial cushion without strings attached, governments could save money by eliminating costly social programs like welfare and unemployment benefits, in addition to creating incentives for individuals to take risks, start businesses, change jobs, return to school or try a new career.” Giving every citizen this income could also help lower the rising economic inequality helping to rejuvenate the shrinking middle class. Doing so would greatly enhance a country's economy and increase the amount of spenders in the market.
Another possible solution could be a proposal by Milton Friedman known as the negative income tax. Friedman’s system involves giving poor people money much more easily than today and allow them to spend it however they please. He also believes that poor people should be treated the same as the middle and upper class when registering for this benefit. It is supposed to “only target those who need the money rather than the entire population” therefore saving the government money over using a universal basic income.
