Tag: ubi

UBI pretend work

this is encouraging from a feasibility of basic income point of view:

If you add any actual value to your company today, your career is probably not moving in the right direction. Real work is for people at the bottom who plan to stay there.

i’ve long suspected that people at most companies don’t actually do anything and would not be missed.

Youth unemployment

In the EU-28 in 2012 there were 57.5M persons aged 15-24, of whom 5.6 M were unemployed. This gives a youth unemployment ratio of 9.7 %. Rapid reeducation is needed and a culture of making and entrepreneurship – employment and skill retooling and career relaunching. Students are coming out “qualified” and educated but not work ready. They do not have the desired skills and experience. The difficult economic times has meant that companies are unwilling to spend the resources to bring anyone up to speed.

VC for the people

usually basic income proposals stop at the feasibility analysis. not here:

the state could provide venture capital to the people. If ordinary citizens had a small but reliable annuity, too modest to live comfortably but enough to prevent destitution, then at the margin, we’d expect people who currently seek or accept unfulfilling, underpaid work to opt for entrepreneurship, or education, or art, or child-rearing, or just hold out for a better gig. “VC for the people” would combine a reduction in labor supply with a lot of new labor demand, forcing employers to increase wages and encouraging substitution of capital for the least desirable jobs. Both the wage effect and the annuity itself would increase the share of national income available to those without direct claims on capital, reducing inequality.

Negative Equity

The US has the second largest population of indebted people, and US poor people are able to rack up more debt than the poor Indian person. this isn’t just a theoretical exercise either: while basic income will probably happen, i don’t see a global debt jubilee happen. which would mean that everyone in the world would have enough to eat, but people with negative equity would still not be able to live free lives because they’ll be constrained to serving their debt load.

Avoid tweaking UBI

good followup. unless we resist the temptation to “tweak” things, we’ll end up in the same complicated mess we have today:

Whether on grounds of justice, practicality, or just public choice considerations, we should not expect everyone to be paid the same under a guaranteed annual income. And with enough tweaks, this version of the guaranteed income suddenly starts resembling…the welfare state, albeit the welfare state plus.

UBI math

Conservatives think such a program could significantly reduce the size of our federal bureaucracy. The left is more concerned with basic income as an anti-poverty and pro-mobility tool.

it would be pretty amazing if you could just do a big TARP like program and go straight to this. afterwards you can restructure the economy to deal with the move to a mostly automated society, ala Erik Brynjolfsson.

Artisanal-Pickle Makers

this kind of work could offer a meaningful employment to the masses obsoleted by technology. most white collar jobs aren’t that hard to automate and will be soon, so the question has always been, what do you do when only 5% of the population has a job? creating artisanal products and getting really good at it, like the japanese, would fill the week with something interesting to do, and your local community would appreciate the results.

The transition to an increasingly craft-centered economy will not be without agony. Woehrle and Premo succeeded because both had access to investors and the innate ability to segue from the salaried confines of corporate life to a much riskier, entrepreneurial world. A craft economy is far less stable: those who succeed this year may fail the next, as their once-unique products become commodities made cheaply overseas. Still, this new world seems, to some extent, inevitable. Instead of rolling our eyes at self-conscious Brooklyn hipsters pickling everything in sight, we might look to them as guides to the future of the American economy. Just don’t tell them that. It would break their hearts to be called model 21st-century capitalists.

background reading:
Are we seeing the beginning of the end of work?
What will the economy of the future look like?

Recycling 2b jobs

he is a bit too optimistic about 3d printing, but pretty much on the mark otherwise.

In these 5 industries alone there will be 100Ms of jobs disappearing. But many other sectors will also be affected. Certainly there’s a downside to all this. The more technology we rely on, the more breaking points we’ll have in our lives. Driverless drones can deliver people. These people can deliver bombs or illicit drugs as easily as pizza. Robots that can build building can also destroy buildings.

Bullshit jobs

The paradox is this. A job seeker is looking for a well-defined job. But the trend seems to be that if a job can be defined, it can be automated or outsourced. The marginal product of people who need well-defined jobs is declining. The marginal product of people who can thrive in less structured environments is increasing.

See also zero marginal product workers what fraction of the economy is pretend work, appearing to be busy?
2013-08-20: On the predicament of ZMP (0 marginal product) workers:

Huge swathes of people spend their entire working lives performing tasks they secretly believe do not really need to be performed. The moral and spiritual damage that comes from this situation is profound. It is a scar across our collective soul.

2014-11-21: When the revolution comes, this will be very useful to smoke out people.
2018-06-07: A New Yorker take

Bullshit, like paper waste, accumulates in offices with the inevitability of February snow. Justification reports: What are these? Nobody knows. And yet they pile up around you, Xerox-warmed, to be not-read. Best-practices documents? Anybody’s guess, really, including their authors’. Some people thought that digitization would banish this nonsense. Those people were wrong. Now, all day, you get e-mails about “consumer intimacy” (oh, boy); “all hands” (whose hands?); and the new expense-reporting software, which requires that all receipts be mounted on paper, scanned, and uploaded to a server that rejects them, since you failed to pre-file the crucial post-travel form. If you’re lucky, bullshit of this genre consumes only a few hours of your normal workweek. If you’re among the millions of less fortunate Americans, it is the basis of your entire career.

2018-09-20: Scott Alexander looks into the topic

I write a note saying: To whom it may concern: I am a psychiatrist treating Mr. Smith. He tells me that he has chronic back pain (“lumbago”), and asks to be allowed to bring in his own chair to work. Yours, Dr. Alexander It’s too soon to have a good sample size. But it seems to usually work. I think it works because there is nobody at Mr. Smith’s workplace – maybe nobody in the entire world – who’s really invested in preventing Mr. Smith from bringing a chair into work. Someone wrote up a procedure for employees using special chairs, so that they’re not the sort of cowboys who make decisions without procedures. Someone else feels like they have to enforce it, so that they’re not the sort of rebel who flouts procedures. But nobody cares.

2021-03-06: It’s surprising that it took so long to automate extremely low value work like copying & pasting, and somehow requiring a college degree:

they do the dull-but-critical tasks that someone named Phil in Accounting used to do: reconciling bank statements, approving expense reports, reviewing tax forms. […] She’d known that her job was straightforward and repetitive, making it low-hanging fruit for automation. The experience was a wake-up call. She had a college degree and was early in her career.

2023-01-17: The race between bullshit jobs and automation

We escaped the original Malthusian trap with the Industrial Revolution, expanding capacity faster than the population could grow. A sufficient lead altered underlying conditions to the point where we should worry more about declining population than rising population in most places.

Consider the same scenario for a potential AI Revolution via GPT-4.

Presume GPT-4 allows partial or complete automation of a large percentage of existing bullshit jobs. What happens?

My model says this depends on the speed of adaptation.