Over the last decade we have posted numerous blogs relating to continuing interest in some kind of universal basic income (UBI). In recent years, more than 150 UBI pilot programs have yielded mixed results. Now come many leading Silicon Valley entrepreneurs who have promoted schemes to address concerns that AI will displace human workers. These tech billionaires may be looking to burnish their image by handing money to people without, apparently, recognizing the importance of the work ethic.
The importance of work ethic and self-esteem are not new concepts. “Idle hands are the devil’s workshop” is biblical. More recently, the popular adage, “busy hands are happy hands”, in effect, says the same thing. Life is about more than money. Social programs that have had the unintended consequence of disenfranchising parts of the family unit have probably done more harm than good.
Historically, advances in productivity and new inventions that have initially been seen as job killers have usually, over time, provided more jobs at higher wages. While solutions are not currently apparent, investors should be alert to the extent and timing of the potential for the AI-driven destruction of jobs and possible offsets.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA
