The rapid progression of automation and artificial intelligence (AI) is prompting a widespread discourse on their potential impacts on the global job market. While catastrophic job losses may be a sensationalist perspective, the indisputable truth remains that AI and automation will inevitably cause disruption in the labor force.
As productivity and profits burgeon for corporations, the looming question is: How can society ensure an equitable distribution of these technological dividends? An audacious proposition that has been put forward is tying a universal basic income (UBI) to GDP per capita.
Democratizing Wealth in the Age of Automation
As AI and automation escalate productivity and operational efficiency, an increase in GDP per capita is anticipated. However, the benefits from these productivity enhancements typically skew towards affluent income earners and those owning capital. Implementing a UBI tied to GDP per capita could ensure a more evenly spread of dividends.
For instance, if automation results in a $5,000 per capita increase in GDP, this extra income could be redistributed through a UBI. This approach has the potential to put money directly into the populace's pockets, effectively counteracting the job losses and growing income disparity aggravated by automation. Furthermore, it would initiate a virtuous cycle where heightened consumer spending boosts demand, thus stimulating further economic growth.
Another intriguing player on the scene is Worldcoin, a project introduced by Sam Altman and his team with the ambitious goal of creating a new, universally accessible financial and identification network. Worldcoin combines a privacy-preserving digital identity (World ID) with a digital currency (WLD), gifted to users simply for being human, in regions where laws allow. With Worldcoin, Altman envisions a future where economic opportunity is significantly expanded, a reliable and privacy-preserving distinction between humans and AI is established, and global democratic processes are enabled. This revolutionary project could even pave the way towards an AI-funded UBI, reflecting the increasingly intertwined futures of automation, AI, and global economic systems.
As succinctly put by economist Robert Reich, "The robots are baking more economic pies. We just need to distribute those pies to more ovens." Rather than each worker laboriously baking their individual pie from scratch, automation allows for an explosion of mass-produced pies. A UBI ensures that every oven gets a pie, not merely the owners of the robotic pie factories.
Venturing Into Alternate Solutions
While UBI provides one possible solution, we should also consider other targeted social safety nets that offer assistance to those most at risk from the advent of automation. Such support could take the form of reskilling initiatives, job placement aids, and investments in education and training. By focusing on those most susceptible to job displacement, we can alleviate the adverse effects of automation without resorting to a blanket income guarantee.
A further alternative is the concept of "shared ownership" of automated technologies. This approach encourages a wider distribution of AI and automation ownership, rather than relying solely on income redistribution. Mechanisms such as employee ownership, cooperatives, or community-based investment funds could be employed to give more individuals a stake in the profits generated by automation, fostering a more inclusive and equitable society.
Although the specifics are critical, broadening the distribution of state-of-the-art LLMs and GPUs to the public can facilitate our transition to a better future. After all, we’re all stakeholders in this automated future, and sharing its bounty might just be the key to unlocking a more prosperous and equitable world.
Also published here.