On the implementation of the Universal Basic Income as a response to technological unemployment

TL;DR

This paper critically assesses the effectiveness of Universal Basic Income in mitigating technological unemployment, highlighting its limitations through empirical data and theoretical analysis, and advocates for alternative welfare and training strategies.

Contribution

It provides a comprehensive analysis of UBI's shortcomings in addressing automation-driven job displacement and proposes alternative policy recommendations.

Findings

UBI shows limited impact on improving employment metrics.

Empirical data indicates UBI's minimal effect on living standards.

Theoretical projections suggest UBI may not effectively counteract automation effects.

Abstract

The effects of automation on our economy and society are more palpable than ever, with nearly half of jobs at risk of being fully executed by machines over the next decade or two. Policymakers and scholars alike have championed the Universal Basic Income (UBI) as a catch-all solution to this problem. This paper examines the shortcomings of UBI in addressing the automation-led large-scale displacement of labor by analyzing empirical data from previous UBI-comparable experiments and presenting theoretical projections that highlight disappointing impacts of UBI in the improvement of relevant living standards and employability metrics among pensioners. Finally, a recommendation shall be made for the retainment of existing means-tested welfare programs while bolstering funding and R&D for more up-to-date worker training schemes as a more effective solution to technological unemployment.