RE: Universal basic income will fix the economy and tax system, even today
I agree that automation and AI are going to reduce available jobs at the same time as creating new jobs. Not everyone will adapt this the shift that is already happening. Nothing is being done to address this issue. A big change in how people survive and hopefully thrive needs to be worked out. UBI might be part of the solution but I don't believe it will be a fix for what is coming.
This article and a few others make the point of how automation when drastically reduce availability of jobs for humans. My understanding is that the majority or a significant amount of US tax comes from income tax. If automation and AI destroys 80% of jobs will a 20% tax rate be enough.
When the majority of a population are not working, surely the tax rate would need to increase to support UBI for everyone. I wonder how high would the tax rate get before people are dis-incentivised to work. If prices for necessities goes up the cost for UBI will also need to go up.
Humans both individually and collectively often act irrationally to their own detriment. We also behave in ways that are self centered and short sighted. This makes us our own worst enemy. To solve the growing job and resource shortages, we need to change how we think and act.
As long as people are spending money, other people are making money. If automation takes over the job market then products would be cheaper, higher quality, and the robots will be able to make more products. As income decreases, so will the price of products and therefore a smaller income will still be able to purchase just as much. But I don't think total income is going to decrease, it'll just be in the hands of a smaller percentage of the population.