Nation Has Many Tools to Control Economy

In 2018, the World Economic Forum (WEF) released a report titled “The Future of Jobs.” In that report, it estimated that automation may destroy up to 58 million jobs by 2022. However, in that same report, the WEF also predicted that automation would create 133 million new jobs. That’s 75 million new jobs, or 2.28 new jobs for every job destroyed.

In other words, automation creates jobs. That’s something that proponents of a universal basic income (UBI) often forget. The challenge is to ensure that the jobs created are good jobs within an economy that encourages human flourishing. Here are a few ways to do exactly that:

If the minimum wage had kept pace with productivity growth since 1968, it would exceed $24 per hour today.

Second, reform income taxes: According to Pew Research, 61% of all income tax returns paid in 2017 had an adjusted gross income of less than $50,000 per year. These returns generated just 5.4% of federal revenue. Why tax these people at all?

Third, credit card interest rates: Have you noticed your card has an interest rate of about 15%? Meanwhile, the interest rate set by the Federal Reserve is 0 percent. That’s usurious. Credit card companies should only be allowed to charge an interest rate up to 5% greater than the rate set by the Federal Reserve.

In short, we have better tools (including many more not mentioned here) available than UBI. What we lack is the will to use them. We need to get over that and start to govern. Otherwise, we face a neo-feudalist future. Its signature policy, UBI, will be the 21st century equivalent of Roman poet Juvenal’s “Bread and Circuses.” This time, though, the circus will be on your smartphone.