Why is UBI such a tedious topic?

UBI is a DRAG

Many people are talking about Universal Basic Income (UBI), the policy that proposes a standardized cash payment to citizens. On gut feeling alone, the idea is seductive, but upon further inspection, it is a quagmire. This is because at its root it is a moral question. Should people receive “something for nothing?” Is a cash portion of the society’s surplus a birthright? If recipients don’t work, what will become of their soul? Will it wither? Will idle hands conduct the devils work? What if the point of work is suffering in hopes of a better tomorrow? Can we respect each other without that common, obligatory suffering? In this way it’s very similar to diet and personal finance. If you don’t suffer for your weight loss, is it really a diet? If you don’t save your money, can you still be a good person? UBI is, at first blush, a purely technocratic proposal. But it is much more than that. The soul of our society is at stake.

So I am going to note and comment on a couple of articles and books I have read recently that touch on UBI, and make a uncommon conclusion.

Who Really Stands to Win From Universal Basic Income? By Nathan Heller (New Yorker)

A strange feature of our time is that there are advocates on both the right and the left for UBI. Socialists on the left want it. Billionaires like Elon Musk advocate for it today. Richard Nixon and Milton Friedman even proposed a right leaning solution in the 1970s, with a negative income tax.

I was excited to read this article because I like Nathan Heller’s writing. But he flailed and struggled to make the article interesting and cohesive. Why?

Something about UBI makes it a difficult topic to cover. It is vacuous. Many different groups are writing books about it for many different reasons, and it is difficult to reconcile their underlying assumptions. Business-minded people want a UBI to ensure consumers have enough money in their pockets to keep spending. Those seeking to eliminate poverty want a UBI to ensure the basic dignity of life. The former assumes a dire need to maintain consumer spending (which makes sense because it accounts for almost 70% of economic activity) and the latter assumes the dire necessity of human rights.

Other myriad and conflicting reasons for UBI from the article: Automation will eliminate jobs. It could eradicate poverty. There’s too much surplus capital. The gig economy corroded the possibility of labor unions. A monthly check could allow the government to eliminate welfare. Cuts down on paperwork. The wealthy are free to grow wealthier, knowing that the poor have cash. Success is random. A rising floor of income lifts all, uh, boats. The reasons for UBI are all over the place.

Most importantly, discussions surrounding UBI spring from a larger problem, which is wealth inequality. Poverty is problematic for everyone. But poverty is relative. UBI doesn’t automatically solve inequality, and is thus something of a dead-end.

Stockton Rolls out Universal Income Experiment (SF Curbed)

Stockton, California is likely to be the most watched UBI test in America. Residents will get $500 a month, unconditionally. This experiment is an example of the UBI-as-replacement-for-social-services, in which a government or municipality issues cash instead of specific benefits, like Medicare or SNAP (food stamps). Unfortunately, for UBI to work, recipients will need to have benefits in addition to cash payment, because if they don’t, insurance premiums could just increase and suck the cash away.

What’s crazy about this test is how little money they are playing with. How much will $500 a month change human behavior?

What If The Government Gave Everyone a Paycheck? By Robert Reich (New York Times Book Review)

Robert Reich, in a review of two books on UBI, says what I was thinking: UBI is problematic because it doesn’t solve inequality. People still have to pay all their own bills, and most people won’t inherit much wealth. The most important issue of our time is the necessity of redistributing wealth. Reich says:

“A core challenge in the future will be how to redistribute money from the ever richer owners of the robots and related technologies to the rest of us, who are otherwise likely to become poorer and less secure. This is not just an economic challenge but also a political one. As we know from recent history, vast fortunes translate directly into political power, and such power effectively resists redistribution. Sadly, neither of these authors discusses how to deal with this paradox.”

Bull Shit Jobs by David Graeber

David Graeber, an anthropologist from the London School of Economics, examines jobs that those who hold them describe as pointless, unnecessary, and wasteful. A survey he cites suggests that 30% of people find their own jobs to be, in his formulation, bullshit. The main question becomes, if capitalism claims to be so efficient, why are there any bullshit jobs at all?

Another question is: Isn’t it strange that it is so demoralizing to work a job where you do nothing? Homo economicus should be happy as a clam to do nothing for something. The answer is not clear.

What I realized towards the end of Graeber’s book was that we already have a form of UBI, it’s the salaries from bullshit jobs. People need to have money, and there is no great way to give it to them other than having them “work” for it. The really important implication from this is that we live in a world that is not really capitalist, because–as we are often assured–no capitalist would ever create an unnecessary job.

But everyone has worked unnecessary jobs. I worked in the University’s kitchen in college. There was often a list of stuff to do. But some days there wasn’t. On those days, I would hide in the salad cooler and eat apples and salami. For four to six hours. And then I would leave. It wasn’t a job as much as much as it was a really lame, tedious, and heavily conditional scholarship.

The kitchen job was clearly bullshit because it was welfare disguised as work. Some jobs are simply symbolic, like a chief executive’s slew of vice-presidents. Or are in place to fix a problem that was caused by another job.

A reason we don’t object to pointless work is that we believe that work is an end in itself, that it has value just being work. Work symbolizes our commitment to the future existence of our society. It is the sacrifice we make to show others that we want to be part of the group. This is why the more you like your jobs, the less society feels like you are sacrificing. Which might be why teachers, nurses, journalists, and artists are paid so terribly. The more tedious and boring and stressful and awful it is, the more obviously a person is buying into the collective system that requires a 40 hour a week (or more) tribute (which might be why a lot of people with well paying jobs loudly proclaim their jobs to be “so stressful,” they need everyone to know they’re earning their salary and thus place in society). If a person likes their job, they are not contributing to the idea that a person must work in order to be considered a member of society.

But the idea that work is valuable in itself is outdated. It began with the Calvinists, or maybe a little before, and created the ideological basis for capitalism. It destabilized the power of feudal lords, and suggested the surplus created by hard work could be put to use creating a brighter future. Work (suffer) today for payment (heaven) tomorrow. However, the profits from running a business, the surplus, are plugged into all kinds of useless things, like inflating the housing market or creating wasteful products that are designed to be obsolete as quickly as possible. So maybe work is pointless.

No More Work by James Livingston

Livingston, a professor of history at Rutgers, has a radical idea: we need to decouple work from our value as human beings. This need arises from the fact that, in economic terms, we haven’t needed to employ more people to increase productivity, for almost 100 years now. This analysis is supported by the fact that, while both the left and right encourage full employment, wages have not risen in almost 50 years. Is this because people are worth less? Or is it because our work has little to do with the attempt to produce enough goods for everyone (which we haven’t had a problem with for 100 years) or with the attempt to equally distribute these goods to everyone. Pay is, essentially, a political token that we trade in order to control our lives. And if pay isn’t to reward increased productivity, if productivity has been resolved as a problem, pay ought to be linked to our value as citizens in a democracy, meaning distributed equally. This is a good argument for a UBI.

Will Meditation Destroy Business?

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Robin’s Book Report #37
A culture and economics reading list by Robin Kaiser-Schatzlein

Happy July, everyone. I wrote two articles last week for other publications, one about a Jamaican restaurant in Park Slope and one about painter Patrick Brennan. Follow me on Twitter to stay up with what I am doing. Also, please let me know what you have been reading or watching on TV by responding to this email!

In this issue:

  • Is it okay to eat roadkill?
  • Why don’t executives get prosecuted for financial crimes?
  • Is meditation bad for business?
  • Is the “gig economy” not interesting?
Book report

-“Travels in Georgia” by John McPhee

1973 Profile of biologist/ecologist Carol Ruckdeschel. McPhee travels around Georgia with his subject and joins her in eating fresh roadkill. They eat muskrat, snake, raccoon, opossum etc. Another thing I learned: opossums are one of the oldest animals because they are adaptable and will eat anything, just like humans.

-“Who was Milton Friedman?” By Paul Krugman (The New York Review of Books)

A brilliant, measured economist; a deranged public intellectual.

-“Hills of Zion” by H.L. Mencken

H.L. Mencken rarely left his hometown of Baltimore. But, on the occasion of the Scopes Monkey trial, he ventured out in the “Bible Belt” (a term he coined), a region he spent much of his life loathing but never visiting. This narrative has little to do with the trial. It reads like a Southern fever-dream.

The Chickenshit Club: Why The Justice Department Fails to Prosecute Executives by Jesse Eisinger

Eisinger claims that settlement culture ruins our justice system. Strangely, settlements validate their critics on both sides: corporations can say they’re attacked, and the public sees big business paying off the government.

-”The Hardest Job in the World” by John Dickerson (The Atlantic)

Is the presidency just a clustefuck of a job?

-”The Death Of A Once Great City: The Fall of New York and the Urban Crisis of Affluence” by Kevin Baker (Harper)

Stupid article. The author has a problem with a couple of things about New York: the empty storefronts in his neighborhood, chain banks, the tax breaks for the wealthy, the loss of mom-and-pop stores. He’s right that this stuff exists but the problem is that the affordability issue was better addressed in  Michael Greenberg’s article in the New York Review of Books (Baker refers to this piece multiple times).

What seems to be at odds is that the New York City that Baker moved in to, in the 1970s, doesn’t exist anymore. Well, that’s true. But it is categorically true (i.e. things always change). It’s not worth Harper’s paper and ink. What I feel most annoyed by is that I love living in New York and don’t want to be told by some old guy that it is a city in decline, when I know it isn’t.

The other problem is that housing isn’t affordable anywhere, according to a report by the National Low Income Housing Coalition. New York may be having a crisis of affluence, but it isn’t just New York City’s crisis of affluence, but all American cities. Any city that has rampant luxury condominiums is likely suffering.

-”Staying the Invisible Hand” by Jeff Madrick (New York Review of Books)

Is free trade really that necessary for developing countries? The author says: “There is nothing in the historical record to suggest developing countries need low or zero barriers to advanced economies in order to benefit greatly from globalization.” I think free trade is a myth

Hey Boss, You Don’t Want Your Employees to Meditate” by Kathleen D. Vohs and Andrew C. Hafenbrack (New York Times)

A bunch of joy-killing researchers at the University of Minnesota Carson School of Management have found that employees that meditate at work are less motivated. The danger in meditation is that it causes you to be happy with your life and work as it is, instead of pushing for an unknown future. This makes you wonder, if meditation makes your job seem pointless, maybe your job is bullshit?

In this same section of the newspaper was a profile of the CEO of Salesforce who has his employees meditate. A little bit of information dissonance?

Maybe the Gig Economy Isn’t Reshaping Work After All” By Ben Casselman (New York Times

The so-called “gig economy” accounts for under 10% of the economy; most employees still on W2. I am starting to think the gig economy is a bright shiny object that had captured our imagination, but isn’t an economically significant trend/issue.