Could universal basic income be part of the solution in an AI economy?
The scale of the economic disruption caused by AI has led even conservative politicians to talk about universal basic income. But economists are not convinced, and campaigners think we need to ask deeper questions.
In November, Germany's Chancellor Friedrich Merz discussed the potential need for a universal basic income (UBI) in response to AI displacing hundreds of thousands of jobs. Though Merz is known for his neoliberal, market-friendly views, he expressed caution about the issue, acknowledging AI's profound impact on the labor market.
Merz's stance contradicts his government's recent policies, which include raising the retirement age and cracking down on sick leave, suggesting a preference for increased work and efficiency. The head of Germany's Federal Employment Agency, Andrea Nahles, warned that AI could eliminate up to 800,000 jobs in the next 15 years. Her colleague, Karsten Wildberger, suggested unconditional basic income could help mitigate these disruptions.
Campaigners welcomed Merz and Wildberger's open discussion on UBI as a sign of acknowledging the need for new economic safety nets in the face of technological change. However, mainstream German economists remain skeptical, arguing that UBI would be too costly, especially given existing social welfare expenses. While some economists see potential in a conditional UBI, they emphasize the importance of adapting social security systems to accommodate AI-driven job losses.
Written by urgent.news from DW English (Top Stories)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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