Is UBI Already Here?
And can we make it work for us?
Universal Basic Income (UBI) is a government-issued check sent to every citizen, simply for being alive
Every day we have Panic Peddlers screaming about the impending collapse of the economy. As we noted in episode 20, if you scream “market crash” everyday for years on end, you’ll eventually be correct. Rather than argue against this, the UBI advocates use this as yet another reason to push for UBI. (Right up there with AI and automation taking all the jobs.)
The Panic Peddlers might be wrong about the exact moment the economy will crash, but they are right in the sense that things right now are AFU, and the likelihood that the Fed can fix it without a major downturn is looking highly unlikely.
History says innovation is good
Historically, new innovations have not led to widespread unemployment, but rather have created more jobs. It remains to be seen whether AI and automation will follow this trend or if they will result in a genuine increase in unemployment.
A couple of years before The Great Pandemic we were already hearing chatter about UBI and why it was needed to keep the masses from drifting into poverty. The arguments went back and forth, but were ultimately theoretical as no large scale UBI experiment had ever been held.
Once the Corona Rona took full effect we got our first taste of a UBI type system on a large scale. It came in the form of Stimmy Checks and was combined with other federal and state programs.
Like Communism, True UBI Has Never Been Tried
The success and failure of this is still debated, very few minds were changed. Despite the shocking increase in suicide, overdose and domestic violence, the blame is still split between lockdowns and fear over any relationship to UBI.
What is crystal clear is that when given the option to stay poor for free, people will seize it. Going back to work might increase your quality of life, but for no effort whatsoever I can stay home and be poor? A frightening amount of people said “sign me up!”
Is UBI Here already?
As we discussed in Episode 22, watching the lockdowns, I didn’t argue over whether UBI worked. I came to a different conclusion, that UBI is already here, and has been here for quite some time. The pandemic exposed beyond any doubt that our economy is filled with fake jobs occupied by incompetent Kidults.
The most recent proof of this is when Tech Billionaire and Bond Villain Elon Musk fired 75% of Twitter employees, with several hundred quitting on top of that. Did Twitter implode? Despite the hopeful prayers of leftists, Twitter not only survived, but started the process of improvement and moved towards profitability.
Elon proved that thousands of employees were counterproductive dead weight. Shortly after his example, Amazon, Google and Facebook did the same. For those of us paying attention, it’s undeniable that Kidults don't have real jobs. These “jobs”, often referred to as Kidult Daycare, amount to little more than corporate UBI.
It's worse than Traditional UBI
The UBI that the politicians are demanding would have people sitting at home in WALL-E type chairs, watching Netflix and eating themselves to oblivion. That would be preferable to the Corporate UBI we see right now,
Today, we have an entire new class of people, the Unproductive Class. These incompetent Kidults are everywhere in the Wokeforce. They serve only as an impediment to progress, preventing the real workers from getting things done. They compete with the Productive Class for jobs and wreak havoc in such a way as to drown out and suppress real talent.
How Much Do Kidults Cost?
No one has calculated, or even asked the question “What is the economic damage of the Kidult Wokforce?” The UBI argument is centered around the cost and who will pay for it. That's the wrong perspective. Today, the right question is how much do these Kidults cost us by being in the way of the Productive Class.
If I didn’t have to deal with Kidults on a daily basis, I would free up hundreds of hours that could be used to accelerate the growth of my business. I’m not the only one. If these speedbumps were removed, the zombie companies would disappear and only real companies would remain.
An Imperfect Theory…
What if we implemented a UBI tax on businesses, regardless of size. This tax would pay the unproductive class to stay home and out of the way of the productive. There are obvious negatives in terms of cost and what this would mean for the Unproductive. However, the benefit to the Productive would be massive.
How much GDP is lost due to incompetent people? How much more could you get done in a day if the useless were removed? How fast would companies grow if the Kidults were out of the way?
The long-term cost of keeping unproductive employees on the payroll – including opportunity costs and lost revenue – are massive. By paying these individuals not to show up, companies might be able to operate more efficiently and effectively.
Could It Work?
In order for UBI to work, it's essential to find ways to make the "UBI crowd" comfortably numb with a sustainable economic footprint. This might be easier than people think. In the digital economy, people's needs become increasingly focused on food, technology and entertainment, reducing their overall expenses and resource consumption. So long as DoorDash is in place, Digital Lobotomies are easy.
The key question is whether a UBI tax can effectively support unproductive individuals while still incentivizing productivity.
Some Obvious Flaws
While implementing a UBI tax and paying unproductive people not to show up to work *might* actually benefit society, there are dangers that come with it. The first of which is how to prevent this system from attracting otherwise productive individuals.
To prevent the loss of productive individuals, certain measures would have to be put in place to create a stigma around being on UBI.
One measure could involve restricting the right to vote for those receiving UBI. Only individuals with a "real job" or business would be allowed to vote. This could help maintain the sustainability of the UBI system by preventing recipients from voting themselves into greater wealth, as we see today with the current welfare class.
The next mitigation would involve setting a minimum wage that is double the UBI payment. I’m generally not a fan of minimum wages, but in this hypothetical it might be appropriate. A minimum wage that's double the UBI would incentivize people to be productive, as they would be guaranteed to make significantly more than what they could on UBI.
Finally, to ensure that the Unproductive Class doesn’t make its way back into the workforce, individuals who are repeatedly fired would be barred from employment and mandated to receive UBI instead. In essence, if you’re useless you’re not allowed to be around the Productive.
Will it Backfire?
It's never a one-way street. There will always be individuals who rise above their circumstances and achieve success, despite the challenges they face. Throughout history, we've seen countless examples of people overcoming poverty and adversity, becoming successful entrepreneurs or contributing significantly to society.
The internet has opened up even more opportunities for people to break free from their circumstances, and it is filled with countless success stories. Though some might be content with receiving UBI and living a digitally complacent life, there will always be those who are driven to push beyond these boundaries, regardless of their background or social standing.
UBI is sold as a safety net. The fear from the opposition is that it will encourage laziness. We know that to some degree both points are true, however, it will never eliminate the innate drive that exists within certain people to succeed. This drive to innovate, create, and improve their lives is an inherent part of human nature that cannot be suppressed or bred out of existence. No matter how far down the UBI road we go, there will always be individuals who refuse to remain complacent and will strive for something more.
The key is to structure UBI in a way that gets the unproductive out of the way of those who innovate and are driven to success.
We know beyond any doubt that too many people are content with a digital existence. That they will take easy money over any effort. That they will accept government overrule and digital lobotomy if it’s free. At this point, I’m willing to pay for their free existence, provided they are completely removed from the workforce and no longer in my way.
This type of corporate UBI tax doesn’t scare me. There will always be those who rise above and challenge the status quo. These individuals, driven by an innate desire for innovation and self-improvement, will continue to contribute to society and serve as shining examples of what can be achieved when determination and ambition are combined.
Yes, I know that much of this idea is fantasy. But how much? UBI is already here. Rather than fight against it, let's put it to work for us.