UBI — AKA Welfare for the Ultra-Rich — Is Not the Answer

A proposal to recover the dignity of civic living

What good is $1000/month if all you can do is buy 12 rolls of toilet paper with it?

In March 2020, $2.2 trillion dollars were created out of thin air and pumped into the economy through direct payments and $2,400/mo in unemployment coverage. Politicians, economists and technologists of all political leanings agreed — this was the only way. But , “only way” to what end?

UBI as cash infusions will always fail to address systemic inequality because the income implicitly justifies the debt structure, spending patterns and economic priorities that caused the inequality in the first place.

In the following months, the stock market rallied, FAANG companies saw record profits, and banks reported surprisingly strong Q2 results while unemployment surged, COVID spread uncontrolled and the average American continued to live at the edge of solvency. Essentially, the $2.2T went towards preserving a highly leveraged system of debts (banks) and spending on fickle digital artifacts (ads, Netlix shows, and gaming subscriptions). The fundamental issues that face our society — climate change, healthcare, education, child care, elder care, infrastructure, destruction of the ecology — were barely acknowledged, let alone addressed.

UBI as cash infusions will always fail to address systemic inequality because the income implicitly justifies the debt structure, spending patterns and economic priorities that caused the inequality in the first place. UBI is actually welfare for the ultra-rich disguised as social justice. For example, one of the drivers of systemic unemployment is the broken financing model for tech companies. These financing models are the equivalent of dumping artificially subsidized services onto society with the expressed intent to destroying value chains while creating an indentured working class. These very tech firms then turn around and advocate for UBI as if it’s an act of compassion. Douglas Rushkoff explains this in great detail here. In fact, trying to cure inequality with UBI is like trying to fix cancer by pouring blood into every malignant cell.

If not UBI, how are we to manage the productivity improvements from technology? We have seen this problem…