Universal Basic Income
The world of work is changing rapidly and will continue to do so in the future. Some jobs are eliminated by technology, just as new ones are created. Universal Basic Income (UBI) has the potential to change our relationship with careers and innovation. Here are six ways innovation could be impacted by UBI.
More working opportunities
UBI will be an improvement over social safety nets provided by governments because it will increase working opportunities. Often people make less money working a low wage job than they would on social welfare, so people’s motivation to rejoin the workforce is low. With UBI people could receive a guaranteed income, while pursuing innovation through start-up companies, which are notoriously risky ventures. “Talented people would be free to work on projects they are passionate about without having to worry about their financial stability. Ideas could develop faster because these kinds of people end up working jobs they are passionate about, rather than following financial incentives that lead them elsewhere,” says Henry Starkey, writer at Academized and Australianhelp.
Dopamine is a chemical released by the brain when a person achieves something. People can experience dopamine rushes from finishing projects, or simply clearing an email inbox. With the introduction of UBI, people will have money arriving regardless of whether they work or not, so they will look for dopamine rushes elsewhere. This could lead to people seeking out new challenges to get their dopamine rush. According to research conducted by Revieweal, people will work toward projects they normally would not have been motivated to undertake. All these new projects will result in new companies and charitable organizations being formed by people’s drive to obtain a dopamine rush they used to get from achieving goals at their day job.
No fear of failure
With UBI, innovators will be free to take risks without fear of failing and losing their job or startup, and thus their livelihood. People will take risks on new innovations. There will also be basic capital for everyone, allowing people to create new products, and also allowing people to purchase these new products. Ideas and products will succeed and fail, but failures will be much more evenly distributed and decentralized. “Failures are necessary in order to reach major achievements. There are many failures for every success, but with the fear of failure eliminated, there will be many more achievements in innovation,” says Donna Scott, writer at UK Writings.
Increased social entrepreneurship
UBI could also have a significant impact on social entrepreneurship, enterprises that follow hybrid models that prioritize both profits and social impact. UBI could provide the kind of safety net that will lead to the creation of more organizations like COMACO. COMACO invests in agricultural technologies and provides farmers access to food markets so they do not resort to poaching or destroying ecosystems. The organization makes millions annually in revenue while also helping to manage ecosystems in Zambia. With the implementation of UBI, many more of these kinds of organizations could exist and benefit their communities.
A lot of jobs are disappearing due to technology, so there will be a massive need for retraining in the future. When someone loses their job, the most common reaction is to find another one right away to earn money to live on. With the introduction of UBI this need would no longer exist. We would see many people enrolling in education for retraining for the new jobs technology will create. People will be learning new skills instead of competing for jobs that may not exist in a few years time. UBI has the potential to smoothen the transition into an even more technologically based economy. Education will continue to change and move online, at places like StateOfWriting, SimpleGrad, and ViaWriting.
Benefit the large corporations the most
The coming automation will concentrate even more resources in the hands of the largest corporations. They will save an enormous amount of money by having severely reduced payrolls, insurance costs, and building costs. Their profits, under these circumstances, though unfeasible today, will allow them to purchase or fund unprecedented levels of innovation. These massive companies will be even more robust and have more power over small startups.
The economy and the way people are employed will continue to change in the future. If implemented, UBI will play a significant role in those changes, as well as impacting the innovation created by the economy. For good, or for bad UBI will be a major factor in future innovations.