Experts Evelyn Forget, Guy Standing, and Karl Widerquist chart a course toward a more inclusive and resilient world.
As artificial intelligence and automation continue to reshape the global job market, societies worldwide are grappling with profound economic and social challenges. Major recent job layoffs, such as those announced by companies like Tesla, Google, Microsoft, Nike, and Amazon, highlight the urgent need for solutions. Nearly 40% of business leaders anticipate layoffs this year, with around four in 10 planning to replace workers with AI.
The rapid pace of technological advancement raises crucial questions: Will there be enough jobs to go around? And who—or what—will hold those scarce positions? The ability of AI to perform current human job functions is leading to job displacement. Young people, who already face anxiety and mental health issues at alarming rates, will be competing with machines for fewer jobs, which is likely to exacerbate the mental health crisis. Can universal basic income provide the stability and purpose needed to mitigate societal polarization? Leading experts demystify the concept and offer advice on implementing UBI.
The Problem: Mental Health And Education In The Age Of Automation
One in seven adolescents globally experiences mental disorders, impacting their education and overall well-being, according to the World Health Organization. Harvard researchers Howard Gardner and Wendy Fischman’s extensive 2023 study on higher education revealed that students often face mental health challenges and a sense of alienation. They argue that higher education in the United States has lost sight of its principal reason for existing: not vocational training, not the provision of campus amenities, but to increase what they term “higher education capital”—helping students think broadly, express themselves clearly, explore new areas, and be open to possible transformations. This holistic development is crucial for preparing students to navigate the complexities of a rapidly changing job market and society.
While AI and automation may not entirely eliminate jobs, they create a demand for skills that don’t match those emphasized by today’s education systems, says Evelyn Forget, a globally recognized economist known for her work on health and social policies. “There is a significant mismatch between the skills that workers bring to the market and the skills that new jobs require,” she explains. Forget argues that UBI can provide these workers with the financial stability needed to retrain and adapt to new industries, and she adds, “UBI can allow some workers the time to go back to school and to acquire new skills, and it can allow older workers to transition to retirement with a bit of dignity.”
Guy Standing, a renowned economist and author of The Politics of Time: Gaining Control in the Age of Uncertainty, emphasizes the destabilizing effects of economic inequality and insecurity. “The AI revolution is accentuating the flow of income and power to the owners of property, leaving a new class—the precariat—wallowing in insecurity and existential fear,” Standing observes. He argues that UBI can provide a financial safety net that mitigates these issues, allowing individuals to pursue meaningful activities and reduce mental health problems stemming from economic stress.
UBI can have a profound impact on education and mental health by providing financial security, adds Karl Widerquist, a political theorist, author, and economist at Georgetown University-Qatar. “Studies have shown that UBI helps kids stay in school and do better in school, and it helps people take the time to find the right job that best uses their talents,” Widerquist explains. He emphasizes that UBI can alleviate the financial pressures that exacerbate mental health issues and hinder educational attainment.
How to Implement UBI: Strategies From Leading Experts
Implementing UBI requires careful planning and sustainable funding mechanisms. Forget, Standing, and Widerquist offer ideas on how governments can achieve this transformative policy.
Funding Mechanisms
UBI is more affordable than it appears because it operates as a refundable tax credit, Widerquist explains. “The real cost is the net cost—the difference between what people pay in taxes and receive in UBI,” he adds, estimating this net cost to be about 3% of GDP. He advocates for funding UBI through taxes targeting the top 1%, including land value, resources, and rent taxes, wealth taxes, and higher income tax rates for the wealthy. “Reducing giveaways to the donor class alone could raise more than 3% of GDP,” he suggests.
Create an “eco-fiscal policy” which involves establishing a Commons Capital Fund, Standing proposes. This fund would be financed by levies on activities that cause ecological harm or result in the loss of common resources. “A Commons Capital Fund—a form of sovereign wealth fund as exists in over 80 countries—should be established, financed by levies on activities that are causing ecological harm or loss of the commons,” Standing recommends.
Integrate UBI into existing social welfare programs, says Forget. “By integrating UBI into existing structures, we can minimize the bureaucratic hurdles that often impede social welfare programs,” she advises. This gradual approach can help manage the transition and address potential economic disruptions.
Phased Implementation
For a phased or incremental approach to implementing UBI, Widerquist points to Alaska’s model, which uses oil revenue to fund a small UBI for residents. “We could have done the same when we legalized cannabis or gave away the broadcast spectrum,” he notes. He also highlights efforts in Oregon to introduce a corporate tax to support a small UBI. “Reducing the power of the donor class in politics is crucial for implementing UBI,” Widerquist adds.
Economic And Social Benefits
Standing and Forget both emphasize the broader economic and social benefits of UBI. UBI can provide a financial safety net that mitigates economic insecurity and inequality while also allowing individuals to pursue meaningful activities, Standing argues. “Most people do jobs because they need the income, not because they find them fulfilling,” Standing asserts. UBI allows individuals to pursue meaningful activities, leading to a more engaged society.
Forget points to the social and health benefits demonstrated by the 1970s Mincome experiment in Canada, where participants were 8.5% less likely to be hospitalized. “A basic income could reduce healthcare costs significantly,” she notes. Financial stability also allowed families to prioritize education, breaking the cycle of poverty.
UBI and Mental Health: A Crucial Link
Over one-third of young people aged 18 to 24 experience common mental health disorders like depression and anxiety, according to the Resolution Foundation’s report. Poor mental health hampers young people’s ability to succeed in education and the labor market. Standing underscores the importance of addressing this crisis: “Insecurity breeds fear and a tendency to listen to demagogues who promise to ‘bring back yesterday’. A basic income could help reverse the trend by providing young people with the security they need.” Evelyn Forget adds, “Mental health challenges are exacerbated by financial stress. A basic income could provide the stability needed for young people to focus on their education and personal development.”
Overcoming Misconceptions About UBI
Despite its potential, UBI faces several misconceptions. Critics argue that it is unaffordable, will reduce work incentives, and provides “something for nothing.” However, Standing’s research and numerous UBI pilots worldwide debunk these myths. “Evidence shows that UBI increases work participation and enhances mental health and educational outcomes,” he states. Examples referenced by Standing and Forget include the Finland Basic Income Experiment (two-year pilot provided 2,000 unemployed with income, reducing stress and increasing employment levels), the Give Directly pilot in Kenya (provided basic income to 20,000 in rural Kenya, improving well-being and entrepreneurship) and the Stockton Economic Empowerment Demonstration (SEED) in California (gave $500 monthly to 125 residents, improving financial stability and employment).
Karl Widerquist addresses another common criticism: the fallacy that “people don’t want to work.” He argues, “The problem has never been lazy workers; it has always been cheap donor-class employers who lobby the government to put people in the position where they have no other choice but accept poverty-wage jobs. To build a free society, this needs to end now. UBI can do it.”
The Economic Impact Of UBI
Widerquist believes UBI will positively impact economic growth and inequality. “UBI will have a very positive impact on inequality. The net effect of taxes targeting the 1% and UBI for everyone will instantly increase equality,” he explains. As noted above, research indicates that universal basic income supports children in maintaining school attendance and improving their academic performance. Additionally, it enables individuals to secure employment that aligns with their skills and talents.
Next Steps
To harness the potential of UBI as a transformative tool, policymakers should focus on the following strategies:
- Gradual Implementation: Integrate UBI into existing social programs to minimize bureaucratic hurdles.
- Support Education and Reskilling: Ensure UBI provides the financial stability needed for continuous learning and adaptation.
- Promote Mental Health: Address the mental health crisis among young people by reducing financial stress through UBI.
- Sustainable Financing: Establish eco-fiscal policies to fund UBI sustainably.
As we look to the future, integrating UBI with comprehensive educational and social reforms can help us build a society that values human dignity, purpose, and collective well-being.
