The full implications of mooted Universal Basic Income must be considered

I applaud the concept of Umiversal Basic Income (UBI) for bringing forward thinking on the implications of mass automation and bringing the discussion into the mainstream of political discourse.

It is an interesting idea that attracts thinking from across the field. For some, the key attraction is the simplification of the government benefits system, for others it will allow fairer distribution of resources and some groups point to a cultural dividend provided by freeing up human endeavour to pursue hobbies and leisure.

The law of unintended consequences may cause problems. Some argue that if UBI provides an overall increased disposable income at the population level then inflation will simply erode the value of the UBI to match current spending levels, as supply and demand reach equilibrium. If everyone has an extra £500 in their pocket each month then what is to stop the average rent increasing by £500 per month?

If more people are prepared to leave the workforce the average wage could rise but would this cost lead to higher prices and exacerbate the situation?

The price of running true universal basic income across an entire country would bring up politically sensitive and divisive questions.

How would we decide on who gets UBI? In ancient Greece, non-citizen residents were called “metics” and were denied rights such as voting. Would we implement a similar system but with UBI?

Providing a guaranteed income could rapidly increase the desire for migration from poorer countries, and understandably so – why be unemployed or perform hard labour in a Third World country if you can have a comfortable standard of living by reaching one that would provide you with UBI? Would the increased disposable income, combined with stringent barriers to immigration, lead to increased trade with developing nations to match the increased demand and lead to higher standards of living as a knock-on effect?

Exploring concepts like UBI forces us all to look forward at the difficult problems that lie ahead. A satisfactory outcome can only result from honest, open and ongoing discussion.

Fountain Place, Loanhead