Finland's
grand experiment, albeit in small scale, in providing a Universal Basic Income
(UBI) without preconditions, ushers in a new dawn in modern societal design.
The idea is already late for many countries as accelerating technology makes
routine jobs irrelevant and any education less than college, nearly valueless.
It is a regime change in such a short time that disallows gradual adjustments
and it affects large swaths of populations across the world. Finely tuned
welfare programs that create a disincentive for the poor to seek work and
policies such as minimum wages that curb opportunities for the young to gain
experience, has been creating stress in the social fabric for many decades. UBI
will not only correct such disincentives but also remove the cost and
inefficiencies associated with the bureaucracies that manage such programs.
The
objective function for a modern society is clear - maximize aggregate
happiness. Most research on happiness indicate an inverted U relationship with
significant disutility in the absence of basic necessities or the fear of not
having them in the future. UBI will remove such fear but avoid any disincentive
effects. More importantly, UBI could provide optionality for each individual
with private utility functions to select optimal pathways to maximize own
happiness. If each individual has the flexibility to design such pathways, then
society will unambiguously maximize aggregate happiness. What's missing from
the status-quo of centrally administered myriad of welfare programs is
flexibility for the individual to maximize own utility, unencumbered by the
lack of basic necessities - food, shelter, health and information. UBI could
provide that at a lower cost than current programs.
Universal
Basic Income is conceptually and practically elegant. But to implement it,
politicians have to acquire a desire to do something good during the course of
their long and uninterrupted careers.
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