UNIVERSAL BASIC INCOME IS NO PANACEA FOR US – AND LABOUR SHOULDN’T BACK IT -SONIA SODHA

OPINION : 

  There aren’t many ideas that unite trade unionists, the libertarian right, the green movement, and the Silicon Valley tech scene . But that’s the rainbow alliance backing a universal basic income, a centuries-old idea posited as the solution to a range of 21st-century problems. Is its surprising coalition of bedfellows a sign of an idea whose time has at last resoundingly come – or a symptom of a catch-all, superficial fix in search of a problem?

Universal basic income, sometimes called a citizens’ income, is the idea that the state should pay every adult citizen a regular, modest income. It is a no-strings payment, so unlike benefits currently available to people of working age, it is not means tested. You get it regardless of whether you have a job, are looking for work, or whether you are even willing to work.

A basic income has long counted on support from the political fringes. It has appealed to radical feminists and greens frustrated by capitalist failure to properly value non-monetary work, such as care. The libertarian right embraces it as an opportunity to roll back the bureaucracy of the state, replacing public services with a simple, regular cash payment, to be spent as people wish.

But the real reason for basic income’s unlikely elevation to idea of the moment is the growing chorus of thinkers who seem to believe the modern economy can’t function without it. Tech utopians talk up the rise of robots and the development of artificial intelligence, which they say will leave less work to go round. They argue that this is the perfect opportunity to embrace a four-day working week and top everyone up with a basic income payment.

Labour market dystopians, on the other hand, rightly point to growing insecurity in the low-paid labour market and the millennials bouncing from gig to gig, never quite pinning down the security of a permanent contract. For them, a basic income is the poverty backstop that could help people cope with this brave new world.

Ken Loachian welfare critics, meanwhile, denounce today’s convoluted benefits system, worlds away from the contributory, insurance-based system of the past. It has become overloaded with sanctions as politicians compete to become ever more punitive to demonstrate there’s no such thing as something for nothing. So people who have been laid off find themselves pushed further into hardship after having their benefits docked for reasons outside their control. Wouldn’t it be easier to eradicate that inhumane, overbearing complexity, and replace it with something that gives people more breathing room to find the right job?

But, like so many ideas overstretched to become the answer to all problems, a basic income falls short on all of the above. If we could be bothered, we could fix the caring issue simply by increasing the generosity of the stingy state benefits paid to those who care full-time for older people or adults with disabilities. If we were so inclined, we could get rid of punitive benefit sanctions and replace them with a welfare-to-work system that puts much more emphasis on training and support for people to find the job that is right for them, not the first that comes along.

But it is in its most ambitious and radical incarnations that basic income runs aground. People have been predicting the end of work for a long time. Guess what: whether they count themselves utopian or dystopian, they have always been proved wrong. The wheel, the loom, the washing machine, the PC: as innovation after innovation has replaced some forms of human labour, the steady march of progress has replaced that labour with something else.

It’s tempting to think our inventions are more transformative than those of our ancestors. But it’s much more likely that, as in the past, technology will radically reshape the world of work without reducing its sum total. That’s partly because the idea that there is a set amount of paid work to be done is an error, which economists call the “lump of labour fallacy”. In fact, the richer we get, the more cash we have to spend – creating more demand and more jobs.

None of this should take away from the fact that we have some serious challenges ahead. The idea that the labour market is being reshaped rather than shrunk won’t be very comforting to taxi drivers losing their jobs to self-driving cars and finding they lack the skills for the new ones being created. But paying people a meagre basic income won’t help: we know from deindustrialisation in the past that leaving people who get laid off languishing on long-term benefits wreaks untold damage on working lives curtailed decades too early.

Britain has also always had too many low-skill, low-paid jobs offering poor prospects of progression. That should seriously worry us, particularly in the light of new research that suggests having a low-paid, stressful job is even worse for your mental health than unemployment.

Far from robots stealing jobs, the reality of today’s economy is that many companies are underinvesting in technology, suppressing productivity growth. In some sectors, labour is so cheap and easily exploitable it doesn’t make sense to modernise – for instance, Leicester’s garment industry is still heavily reliant on old-fashioned sweatshop models. In sectors such as parcel delivery and logistics, technology itself is being used to turn workers into quasi-robots. Wrist-based devices measure routes workers take round the warehouse or delivery rounds to check them for speed and efficiency, and track them right down to how long they take for toilet breaks.

The answer cannot be to accept this sorry state of affairs and try to patch things up with a basic income. It must be to address the fundamental power imbalances that allow employers to shift risk on to their employees by forcing them to become self-employed contractors, or refusing to pay them for breaks. And to develop long-term solutions for improving the quality of work.

You can see the attractions of a basic income for Silicon Valley. Firms such as Uber, whose drivers are classified as self-employed “partners” rely on this risk-shift model. Even as Facebook’s founder, Mark Zuckerberg, heaps praise on a basic income, the tech giant does all in its legal power to avoid tax and dodge paying its fair share towards the social infrastructure it relies on. The left must not allow itself to be seduced. A basic income is a distraction from these core issues of economic power; a radical-sounding excuse to look the other way from the less glamorous, more complex question of how to ensure labour market rights are properly enforced. Accepting a deterioration in employment rights and working conditions in exchange for a basic income could be dangerously counterproductive.

The tax credits that function as income top-ups for people in low-paid work have steadily been eroded by Conservative chancellors over eight years. Labour rights are more future proof: it’s impossible to imagine the government being able to cut statutory maternity leave, the minimum wage or limits on the working week without a much tougher fight – although if they are not properly enforced these rights can end up meaning little in practice for workers with unscrupulous employers.

The left will have to pick its battles. It must focus on winning the right to a decently paid job for all, not sell out by extolling a basic income as a panacea for the ills of the modern labour market. It must choose the fight for power, not the fight for a dribble of cash.

• Sonia Sodha is chief leader writer at the Observer

Source The Guardian