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Andrew Yang on why universal basic income won't make people lazy
The 2020 Democratic presidential candidate wants to give every American $1,000 a month – but will that disincentivize work?
- 2020 Democratic president candidate Andrew Yang discussed his views on universal basic income with The Fifth Column.
- Andrew Yang is the only candidate who's made universal basic income central to his platform.
- His 'Freedom Dividend' plan aims to give every American – no matter their income – $1,000 a month.
A crowded field of 2020 Democratic presidential election candidates has left many executive hopefuls wasting no time trying to distinguish themselves. But while some are focusing on identity issues or a return to pragmatism, Andrew Yang is the only candidate who's made universal basic income central to his campaign.
The 44-year-old entrepreneur hopes to implement a universal basic income – called 'The Freedom Dividend' – that would give every American over the age of 18 a monthly check for $1,000. The plan aims to cushion the damages that automation and technology bring on the American workforce. To Yang, these job losses are part of a disruptive phase that's both reminiscent of past industrial revolutions and far from over. He says his universal basic income plan would help displaced workers and also:
- Grow the economy by 12.56 to 13.10 percent—or about $2.5 trillion by 2025.
- Increase the labor force by 4.5 to 4.7 million people.
- Allow more Americans to become entrepreneurs.
Yang recently sat down with Kmele Foster, an entrepreneur and media commentator who hosts "The Fifth Column" podcast, to discuss his universal basic income plan. The whole episode is worth a listen, but one of the most interesting bits came when Yang addressed the question: Won't the Freedom dividend disincentivize work?
Foster mentioned how his mother lost her job at a consulting firm because she'd developed a narrow skill-set that became noncompetitive, and he suggested that she'd be less interested in broadening her skills if she were to receive $12,000 annually from the government. Yang disagreed.
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"I would suggest that her ability to access, like, additional resources and training would be enhanced by the fact that she has one-thousand bucks a month," Yang said.
"But incentives and ability are different things," Foster said. "So her ability might be enhanced, but her incentives might be diminished, and it's possible for those two things to happen simultaneously."
"You know, I'm just not a huge believer in extreme financial scarcity as, like, the necessary position to be in in order to induce someone to try and find something to do," Yang said. "It's, like, most people in my opinion, will try and find something to do, because they want to find something to do."
The argument that plans like The Freedom Dividend would disincentivize work is a common criticism of UBI, and the logic is usually rooted in a longstanding criticism of welfare: Giving people free money makes them lazy.
But there's a fundamental difference between welfare and UBI: Welfare essentially rewards people for not getting a job, because doing so would mean they can't receive money anymore. This disincentivizes work. Meanwhile, people wouldn't have to meet any conditions to receive Yang's dividend, meaning there'd be no reward for staying unemployed.
Yang nodded to research suggesting that UBI programs don't significantly change work levels. One oft-cited UBI study, conducted on the Alaska Permanent Fund, found no real impact on full-time employment rates, and actually showed that part-time employment increased by 17 percent.
"It is reasonable to expect an unconditional cash transfer, such as a universal income, to decrease employment," the authors said. "A key concern with a universal basic income is that it could discourage people from working, but our research shows that the possible reductions in employment seem to be offset by increases in spending that in turn increase the demand for more workers."
Yang echoed this point about consumers' increased buying power, and also said he believes that his proposed dividend would generate economic value because it'd allow more Americans to experiment with entrepreneurism.
"You're going to end up creating hundreds of thousands of new entrepreneurs, guaranteed, if you have something like the Freedom Dividend, because there are so many Americans who would love to take a shot," Yang said.
"Now, you could argue that, 'Hey, maybe some of these people should not be being entrepreneurs [...]' But you'd wind up with a really significant number of diamonds in the rough, and the way our system works is that a number of diamonds could potentially create so much value that it doesn't really matter what happens with the five people next to them. So, there would be, to me, if anything, an unlocking of human capital that would end up enhancing our system's dynamism."
You can check out the full episode of The Fifth Column podcast here.
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Construction of the $500 billion dollar tech city-state of the future is moving ahead.
- The futuristic megacity Neom is being built in Saudi Arabia.
- The city will be fully automated, leading in health, education and quality of life.
- It will feature an artificial moon, cloud seeding, robotic gladiators and flying taxis.
The Red Sea area where Neom will be built:
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Frequent shopping for single items adds to our carbon footprint.
- A new study shows e-commerce sites like Amazon leave larger greenhouse gas footprints than retail stores.
- Ordering online from retail stores has an even smaller footprint than going to the store yourself.
- Greening efforts by major e-commerce sites won't curb wasteful consumer habits. Consolidating online orders can make a difference.
A pile of recycled cardboard sits on the ground at Recology's Recycle Central on January 4, 2018 in San Francisco, California.
Photo by Justin Sullivan/Getty Images<p>A large part of the reason is speed. In a competitive market, pure players use the equation, <em>speed + convenience</em>, to drive adoption. This is especially relevant to the "last mile" GHG footprint: the distance between the distribution center and the consumer.</p><p>Interestingly, the smallest GHG footprint occurs when you order directly from a physical store—even smaller than going there yourself. Pure players, such as Amazon, are the greatest offenders. Variables like geographic location matter; the team looked at shopping in the UK, the US, China, and the Netherlands. </p><p>Sadegh Shahmohammadi, a PhD student at the Netherlands' Radboud University and corresponding author of the paper, <a href="https://www.cnn.com/2020/02/26/tech/greenhouse-gas-emissions-retail/index.html" target="_blank">says</a> the above "pattern holds true in countries where people mostly drive. It really depends on the country and consumer behavior there."</p><p>The researchers write that this year-and-a-half long study pushes back on previous research that claims online shopping to be better in terms of GHG footprints.</p><p style="margin-left: 20px;">"They have, however, compared the GHG emissions per shopping event and did not consider the link between the retail channels and the basket size, which leads to a different conclusion than that of the current study."</p><p>Online retail is where convenience trumps environment: people tend to order one item at a time when shopping on pure player sites, whereas they stock up on multiple items when visiting a store. Consumers will sometimes order a number of separate items over the course of a week rather than making one trip to purchase everything they need. </p><p>While greening efforts by online retailers are important, until a shift in consumer attitude changes, the current carbon footprint will be a hard obstacle to overcome. Amazon is trying to have it both ways—carbon-free and convenience addicted—and the math isn't adding up. If you need to order things, do it online, but try to consolidate your purchases as much as possible.</p><p>--</p><p><em>Stay in touch with Derek on <a href="http://www.twitter.com/derekberes" target="_blank">Twitter</a>, <a href="https://www.facebook.com/DerekBeresdotcom" target="_blank">Facebook</a> and <a href="https://derekberes.substack.com/" target="_blank">Substack</a>. His next book is</em> "<em>Hero's Dose: The Case For Psychedelics in Ritual and Therapy."</em></p>
Building a personal connection with students can counteract some negative side effects of remote learning.
- Not being able to engage with students in-person due to the pandemic has presented several new challenges for educators, both technical and social. Digital tools have changed the way we all think about learning, but George Couros argues that more needs to be done to make up for what has been lost during "emergency remote teaching."
- One interesting way he has seen to bridge that gap and strengthen teacher-student and student-student relationships is through an event called Identity Day. Giving students the opportunity to share something they are passionate about makes them feel more connected and gets them involved in their education.
- "My hope is that we take these skills and these abilities we're developing through this process and we actually become so much better for our kids when we get back to our face-to-face setting," Couros says. He adds that while no one can predict the future, we can all do our part to adapt to it.
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