Premises of a Universal Basic Income?
23 September 2020
Unequal impact across classes
The Covid-19 pandemic resulted in political measures designed to curb the spread of the virus (e.g. lockdown or the closing of brick and mortar businesses). But their economic impact has not been equal across the society, hitting low skilled, low paid, non-digital jobs.
- About half of the people earning less than $75k experienced a loss of employment income since mid-March, compared to less than a third of those earning more than $200k.
- Non-digital jobs are those that are suffering the most.
State help for all
To mitigate the financial burden and social unrest of the job and income losses, the politicians are extending direct checks to everyone, irrespective of income levels or any other criteria.
- CARES Act gives up to $2,400 for a married couple and $500 per child.
Buying social peace?
The inevitable digitalization of the society, highlighted and accelerated by the Covid pandemic, is widening the social gap. Governments need to seriously consider how automation and digitization will shape the future of work and society, to keep social tensions under control.
- Are the Covid payments the first step toward a Universal Basic Income?
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