EUROPEAN SOCIAL FUND

Is Finland’s basic universal income a solution to automation, fewer jobs and lower wages?

Is Finland’s basic universal income a solution to automation, fewer jobs and lower wages?

 

This Observer article by Sonia Sodha makes a worthwhile analysis of the basic universal income. Perhaps the most telling point comes from Declan Gaffney, an expert on social security: “The lesson from that period is not that we should pay people to stay out of the labour market. It is don’t park people when they lose their jobs. If you expect large-scale job destruction, you need to put policies in place to support people into new jobs. That didn’t happen in the 1980s to the extent it should. As a result, a lot of people who lost jobs never worked again.”

See: https://www.theguardian.com/society/2017/feb/19/basic-income-finland-low-wages-fewer-jobs