1. UNIVERSAL BASIC INCOME
AS A TOOL OF LABOR
MARKET TRANSFORMATIONMARKET TRANSFORMATION
TO TECHNOLOGICAL
ADVANCEMENT
UNIVERSAL BASIC INCOME
AS A TOOL OF LABOR
MARKET TRANSFORMATIONMARKET TRANSFORMATION
TO TECHNOLOGICAL

2. THE EVOLUTION OF TECHNOLOGY: INDUSTRIAL 4.0THE EVOLUTION OF TECHNOLOGY: INDUSTRIAL 4.0

3. 1M Weaving Tools
1M of Woven Clothes
1 Machine1M of Woven Clothes
1M Weaving Tools

4. NOT ONLY CREATES NEW
OPPORTUNITIESOPPORTUNITIES
But also creates some problems
NOT ONLY CREATES NEW
OPPORTUNITIESOPPORTUNITIES
problems

5. The Technology as We Know It: Self Driving Car
5
As of June 2016
Google had test driven their fleet of vehicles, in autonomous
mode, for 2,777,585 km
The Technology as We Know It: Self Driving Car
Google had test driven their fleet of vehicles, in autonomous

6. WHAT WILL HAPPENED TO THEM?WHAT WILL HAPPENED TO THEM?

7. ANOTHER EXAMPLE: TRUCK DRIVERS
▸What will happened to them?
7
ANOTHER EXAMPLE: TRUCK DRIVERS
What will happened to them?

8. Problems of Human-Machine Tradeoff
Some people will
loss their Job
Due to automatization, and the
use of machine that soon will
replace workers
What kind of
training and
replace workers
How to create a
new Job?
If we cannot even imagine it yet.
training and
education should
the government
provide?
To students, and to those who
are 40, 50, and above?
Machine Tradeoff
Structural
Unemployment
Would be the problem in the
short run, due to the gap.
What kind of
training andtraining and
education should
the government
provide?
To students, and to those who
are 40, 50, and above?
Are the new jobs
will be able to
absorb the
workfoce?

9. “We are currently preparing a
students for jobs that don’t yet
exist, using technologies thatexist, using technologies that
haven’t been invented
solve problems we don’t even know
are problems yet
We are currently preparing a
for jobs that don’t yet
technologies thattechnologies that
haven’t been invented, in order to
solve problems we don’t even know

10. THE SOLUTIONSTHE UNIVERSAL (UNCONDITIONAL)
BASIC INCOME (UBI)
THE SOLUTIONSTHE UNIVERSAL (UNCONDITIONAL)

11. UBI CHARACTERISTIC
Periodic
it is paid at regular
intervals (for
example every
month), not as a
Cash Payment
it is paid in an
appropriate
medium of
exchange, allowingmonth), not as a
one-off grant.
exchange, allowing
those who receive
it to decide what
they spend it on.
BI CHARACTERISTIC
Cash Payment
it is paid in an
appropriate
medium of
exchange, allowing
Individuals
it is paid on an
individual basis—
and not, for
instance, toexchange, allowing
who receive
it to decide what
they spend it on.
instance, to
households

12. Universal
It is paid to all, without means test
UBI CHARACTERISTIC (cont’d)
Unconditional
it is paid without a requirement to
work or to
demonstrate
It is paid to all, without means test
BI CHARACTERISTIC (cont’d)
Unconditional
it is paid without a requirement to
work or to
demonstrate willingness-to-work.

13. Objectives of UBI
Provide universal coverage to the population
would fall through the cracks of the working poor.
INCREASEINCREASE
labor market
flexibility.
universal coverage to the population so that no individual
would fall through the cracks of the working poor.
IMPROVEIMPROVE
entrepreneurial skills
and innovation
between human
resources

14. Corporate Tax
ANOTHER SOLUTION
▸More retained earnings available to be reinvested.
▸More investment in machine capital, less
investment in labour, therefore higher productivity.
▸Less income inequality
Dividend Tax
ANOTHER SOLUTION
More retained earnings available to be reinvested.
More investment in machine capital, less
investment in labour, therefore higher productivity.

15. THANKS!THANKS!
Any questions?