Tag Archives: Household income inequality

Rethinking the welfare state would be disruptive – the Economist

Rethinking the welfare state – Basically flawed

Proponents of a basic income underestimate how disruptive it would be

Jun 4th 2016 | From the ECONOMIST print edition

Labour CostsWORK is one of society’s most important institutions. It is the main mechanism through which spending power is allocated. It provides people with meaning, structure and identity. Yet work is a less generous, and less certain, provider of these benefits than it once was. Since 2000 economic growth across the rich world has failed to generate decent pay increases for most workers. Now there is growing fear of a more fundamental threat to the world of work: the possibility that new technologies, from machine learning to driverless cars, will cause havoc to employment.

Such worries have revived interest in an old idea: the payment of a “universal basic income”, an unconditional government payment given to all citizens, as a supplement to or replacement for wages (see article).   Continue reading

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