Tuesday, June 7, 2016

I have to think about this one for a while . . .

Intellectuals can be a kinky lot. Even the ones whose principles align with mine come up with some strange policy proposals or preferences in political candidates, and they usually base what they're asserting on reasoning that seems to me rather convoluted. It's as if they get a kick out of novel concepts for their own sake.

That may be the case with an idea Charles Murray of the American Enterprise Institute is putting forth this morning.

I'm going to reverse the order of his argument, because he predicates his proposal on a socioeconomic development that I don't think we can deny. In fact, a frequent commenter here at LITD often makes this point. We may well be looking at something unprecedented in the realm of human work:

We are approaching a labor market in which entire trades and professions will be mere shadows of what they once were. I’m familiar with the retort: People have been worried about technology destroying jobs since the Luddites, and they have always been wrong. But the case for “this time is different” has a lot going for it.
When cars and trucks started to displace horse-drawn vehicles, it didn’t take much imagination to see that jobs for drivers would replace jobs lost for teamsters, and that car mechanics would be in demand even as jobs for stable boys vanished. It takes a better imagination than mine to come up with new blue-collar occupations that will replace more than a fraction of the jobs (now numbering 4 million) that taxi drivers and truck drivers will lose when driverless vehicles take over. Advances in 3-D printing and “contour craft” technology will put at risk the jobs of many of the 14 million people now employed in production and construction.
The list goes on, and it also includes millions of white-collar jobs formerly thought to be safe. For decades, progress in artificial intelligence lagged behind the hype. In the past few years, AI has come of age. Last spring, for example, a computer program defeated a grandmaster in the classic Asian board game of Go a decade sooner than had been expected. It wasn’t done by software written to play Go but by software that taught itself to play—a landmark advance. Future generations of college graduates should take note.
Exactly how bad is the job situation going to be? An Organization for Economic Cooperation and Development study concluded that 9% of American jobs are at risk. Two Oxford scholars estimate that as many as 47% of American jobs are at risk. Even the optimistic scenario portends a serious problem. Whatever the case, it will need to be possible, within a few decades, for a life well lived in the U.S. not to involve a job as traditionally defined.  
Murray then talks about the volunteer spirit that Tocqueville found in America in the 1840s, and how it has been essential to the fabric of the nation's civic life, and how the big Democrat programs of the twentieth century - those of the New Deal and the Great Society - did indeed undermine that, sabotaging the family structure, with all that entails.

That's why he says his proposal - hang on, I'll reveal it momentarily - hinges on completely doing away with al those programs: "Social Security, Medicare, Medicaid, food stamps, Supplemental Security Income, housing subsidies, welfare for single women and every other kind of welfare and social-services program, as well as agricultural subsidies and corporate welfare," saying that "If the guaranteed income is an add-on to the existing system, it will be as destructive as its critics fear."

So what is his idea? A guaranteed universal basic income:

 In my version, every American citizen age 21 and older would get a $13,000 annual grant deposited electronically into a bank account in monthly installments. Three thousand dollars must be used for health insurance (a complicated provision I won’t try to explain here), leaving every adult with $10,000 in disposable annual income for the rest of their lives.
People can make up to $30,000 in earned income without losing a penny of the grant. After $30,000, a graduated surtax reimburses part of the grant, which would drop to $6,500 (but no lower) when an individual reaches $60,000 of earned income. Why should people making good incomes retain any part of the UBI? Because they will be losing Social Security and Medicare, and they need to be compensated.
He sees it as a massive simplification of our current arrangement, as well as an empowerment tool:

Regardless of what voluntary agencies do (or fail to do), nobody will starve in the streets. Everybody will know that, even if they can’t find any job at all, they can live a decent existence if they are cooperative enough to pool their grants with one or two other people. The social isolates who don’t cooperate will also be getting their own monthly deposit of $833.
Some people will still behave irresponsibly and be in need before that deposit arrives, but the UBI will radically change the social framework within which they seek help: Everybody will know that everybody else has an income stream. It will be possible to say to the irresponsible what can’t be said now: “We won’t let you starve before you get your next deposit, but it’s time for you to get your act together. Don’t try to tell us you’re helpless, because we know you aren’t.”
The known presence of an income stream would transform a wide range of social and personal interactions. The unemployed guy living with his girlfriend will be told that he has to start paying part of the rent or move out, changing the dynamics of their relationship for the better. The guy who does have a low-income job can think about marriage differently if his new family’s income will be at least $35,000 a year instead of just his own earned $15,000.
Or consider the unemployed young man who fathers a child. Today, society is unable to make him shoulder responsibility. Under a UBI, a judge could order part of his monthly grant to be extracted for child support before he ever sees it. The lesson wouldn’t be lost on his male friends.
Or consider teenage girls from poor neighborhoods who have friends turning 21. They watch—and learn—as some of their older friends use their new monthly income to rent their own apartments, buy nice clothes or pay for tuition, while others have to use the money to pay for diapers and baby food, still living with their mothers because they need help with day care. 
These are just a few possible scenarios, but multiply the effects of such interactions by the millions of times they would occur throughout the nation every day. The availability of a guaranteed income wouldn’t relieve individuals of responsibility for the consequences of their actions. It would instead, paradoxically, impose responsibilities that didn’t exist before, which would be a good thing.
Emphasizing the ways in which a UBI would encourage people to make better life choices still doesn’t do justice to its wider likely benefits. A powerful critique of the current system is that the most disadvantaged people in America have no reason to think that they can be anything else. They are poorly educated, without job skills, and live in neighborhoods where prospects are bleak. Their quest for dignity and self-respect often takes the form of trying to beat the system.
The more fortunate members of society may see such people as obstinately refusing to take advantage of the opportunities that exist. But when seen from the perspective of the man who has never held a job or the woman who wants a stable family life, those opportunities look fraudulent.
My version of a UBI would do nothing to stage-manage their lives. In place of little bundles of benefits to be used as a bureaucracy specifies, they would get $10,000 a year to use as they wish. It wouldn’t be charity—every citizen who has turned 21 gets the same thing, deposited monthly into that most respectable of possessions, a bank account.
A UBI would present the most disadvantaged among us with an open road to the middle class if they put their minds to it. It would say to people who have never had reason to believe it before: “Your future is in your hands.” And that would be the truth.
I don't know. This has central planning written all over it, which I'm pretty sure is antithetical to what Charles Murray is fundamentally about.

This pretty much gets us back to basic Constitutional questions. What is the government's purpose and function?

Does the coming change in the nature of human work rise to the level of something the state must necessarily address? Is it as basic as the need to defend our borders and keep our streets safe?

Your thoughts are welcome.
 
 
 



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